Alarm Bells for AlcaLu, Nokia

1:05 PM -- The uncertainty surrounding the future of the eurozone appears to be having a crushing impact on some of Europe's under-pressure vendors, already adding to the duo's operational problems. (See this MarketWatch story for the doom and gloom in Europe's financial markets.)

Alcatel-Lucent (NYSE: ALU)'s share price is down by more than 7 percent Monday to $1.54, giving the company a market capitalization of just $3.5 billion, less than the company booked in revenues in the first quarter of this year. (See Bad Start to 2012 for AlcaLu.)

Nokia Corp. (NYSE: NOK), meanwhile, has seen more than 9 percent of its value wiped out today as its share price dropped to $2.17, giving it a market value of just more than $8 billion. The Finnish giant is in crisis mode and is now trying to cost-cut its way out of trouble as speculation mounts that the rump of its business might end up in Microsoft Corp. (Nasdaq: MSFT)'s hands. (See Nokia Cuts 10,000 Jobs, Restructures and Nokia Poll Update: Farewell Independence? )

So, are these telecom industry giants already beyond help and heading the way of Nortel and Motorola? Or can they turn their fortunes around and revitalize their businesses and share prices?

Share your thoughts on the message boards below.

— Ray Le Maistre, International Managing Editor, Light Reading

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ATARIstar 12/5/2012 | 5:29:16 PM
re: Alarm Bells for AlcaLu, Nokia

AlcaLu it`s for me a Turnaround Story. All the Innovations like Lightradio, Core Router, FP3, 400g etc. will lead to a succesful Turnaround by 2013/2014. With Patent Portfolio and Cost Cutting, AlcaLu will only need a few more Quartes to show the Street that they will do it. 

Good Read from Today: 



<h1>Alcatel-Lucent: Building That Enterprise Channel Buzz</h1>


It's been a long time since the buzz around Alcatel-Lucent's North America enterprise channel was this good.


gtchavan 12/5/2012 | 5:29:16 PM
re: Alarm Bells for AlcaLu, Nokia

A threat of an executive order to put a tarrif on all German products in union with all of the rest of the European countries, will force the Germans to agree to Euobonds and that is the end of the Crisis. &nbsp;If President Obama can not pull this together this week, he will not be relected.

digits 12/5/2012 | 5:29:16 PM
re: Alarm Bells for AlcaLu, Nokia

So it's down to Obama to sort out the Eurozone crisis?&nbsp;

I have a leak in my roof currently - maybe he can come around and fix that too...

Seriously, though, what can Alcatel-Lucent and Nokia do to help themselves?

ecipo 12/5/2012 | 5:29:15 PM
re: Alarm Bells for AlcaLu, Nokia

We all know AlcaLu has a lot of problems. Today's 7% drop is not the cause nor as a result of its problems. Nothing happened since yesterday with the company.

gtchavan 12/5/2012 | 5:29:15 PM
re: Alarm Bells for AlcaLu, Nokia

Nokia and Alcalu, both are state sponsored operations with a large European footprint so they won't go under but they need a healthy european economy to survive. &nbsp;It is out of their hands now.

yarn 12/5/2012 | 5:29:15 PM
re: Alarm Bells for AlcaLu, Nokia

Is there anything new that triggered these sell offs? This market is so unpredictable it might as well be called the "mad cow".

jggveth 12/5/2012 | 5:29:14 PM
re: Alarm Bells for AlcaLu, Nokia

ALU can hire real management.&nbsp; This CEO and CFO will just smile, lie and collect their big checks while Rome burns.&nbsp; This thing will be chapter 11 in 3 years if the BoD doesnt make a change.&nbsp;

ecipo 12/5/2012 | 5:29:14 PM
re: Alarm Bells for AlcaLu, Nokia

Agree, please bring Mike Quigley back.

krishanguru143 12/5/2012 | 5:29:10 PM
re: Alarm Bells for AlcaLu, Nokia

The best thing that could happen to Nokia is to be delisted from the stock exchange.&nbsp; I still think Microsoft will have major hurdles in any effort to acquire Nokia.&nbsp; Once the stock is delisted and if Nokia still has cash, they will need to do what they needed to do, FIRE ELOP.&nbsp; He is the source of most of their current issues.&nbsp; Symbian was still seeing growth and was a cash cow.&nbsp; He slaughtered the cow; now they have no milk and are hungry as the cow has been already been ate.&nbsp; They went from competing in the smartphone market with sales exceeding 130 million handsets a year to competing with the other WP vendors for a piece of 10 million handsets.&nbsp; That is leadership?&nbsp; An untrained monkey with a Magic 8-Ball would have been better at running Nokia.


I&rsquo;m not a shareholder of Nokia but they need to look at one major point.&nbsp; If Microsoft did buy Nokia, the shareholders would get very little for their investment and would see a loss.&nbsp; If the shareholders rejected an offer from Microsoft they have a far better chance of seeing an ROI.&nbsp; Microsoft will buy cheap whereas Nokia could turn themselves around.&nbsp; Case in point, Microsoft; they have had less than 3% of the smartphone market for years and yet the analysts keep saying that Microsoft is going to rival Android and iOS.&nbsp; If Microsoft can go from 3% to over 25%, then surely Nokia can.&nbsp; Looking at all that Nokia has done, they can do it again.&nbsp; Getting rid of Elop sooner rather than later is the key as people can be rehired.&nbsp; If Nokia would have released S90 way back when, things would be far different today but there was too much fighting and competing within Nokia.&nbsp; The E and N series devices proved that.&nbsp; It is not too late to resurrect plans and go full speed ahead.&nbsp; What Nokia needs though, an investor that knows how to run a company and get results.&nbsp; That is not Microsoft and never will be.&nbsp; Elop swung the axe and made deep cuts and essentially killed Nokia.&nbsp; No R&amp;D, no future platforms and they are tied to Microsoft which lost market share in Q1 of this year; 2.6% to 1.9%.

krishanguru143 12/5/2012 | 5:29:09 PM
re: Alarm Bells for AlcaLu, Nokia

I say no with the current leadership.&nbsp; He has just done the slash and burn and WP is not the answer then nor nor the future.&nbsp; Elop won&rsquo;t change direction and that means he must be fired.&nbsp; They need someone with deep pockets and will put the right person in charge.&nbsp; Symbian^3 got good reviews as did MeeGo.&nbsp; All Nokia could do is to resurrect them and go for it; Qt is where everything was headed.


WP would have been the right choice if Qt could have been used.&nbsp; At least then the underlying OS is technically useless.&nbsp; You could easily just jump ship to a new OS and just repackage the apps.&nbsp; That I would have seen as a true vision; let someone else deal with the pesky OS development.&nbsp; This is clearly not what Elop was after and he has truly stayed beyond his welcome.&nbsp; The shareholders need to demand an emergency meeting and they need to force him out and if the board won&rsquo;t do it, then the shareholders need to elect a new board that will.&nbsp; Right now, the shareholders are the ones to lose.


Trojan horse indeed.&nbsp; Elop was lured away from Microsoft and still has stock.&nbsp; He was also a member of the senior board at Microsoft.&nbsp; When does a company let one of their senior management team leave for a competitor without a lawsuit or even a mention of a NO?&nbsp; It never happened and that screams this has been the plan of Elop since day one.

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