Can Alcatel Sustain Its Rally in 2013?


In the following video, Fool analyst Andrew Tonner talks about Alcatel-Lucent (NYSE: ALU), and what investors can expect from the telecom stock in 2013.

After struggling for years, Alcatel is up 36.6% over the past month, reversing a bad year in which the stock had previously lost some 60% of its value. So, is Alcatel a buy? Andrew says not quite yet. But it's not a sell, either. With Alcatel in the midst of a cost-restructuring aimed at saving $1.5 billion, the company should see improved margins and other benefits from leaner operations.

But that doesn't change anything in the fundamental Alcatel story, Andrew says. Alcatel will still operate in a very competitive industry, competing not only with established rivals like Nokia (NYSE:NOK), but low-cost Asian providers as well.

So while things may be looking up in terms of operations, Alcatel still faces significant headwinds ahead in 2013. Andrew calls the stock a hold.

While telecom companies like Alcatel-Lucent operate in a competitive market where it's tough to shine, opportunities exist in the growing mobile market. There's no doubt that Apple is at the center of technology's largest revolution ever and that longtime shareholders have been handsomely rewarded, with more than 1,000% gains. However, there is a debate raging as to whether Apple remains a buy. The Motley Fool's senior technology analyst and managing bureau chief, Eric Bleeker, is prepared to fill you in on both reasons to buy and reasons to sell Apple, and what opportunities are left for the company (and more importantly, your portfolio) going forward. To get instant access to his latest thinking on Apple, simply click here now.

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Originally published