Ask a Fool: Is Alcatel-Lucent Still a Buy?

Ask a Fool: Is Alcatel-Lucent Still a Buy?

Shares of resurgent French-American communications company Alcatel-Lucent have been on quite the tear over the past year or so, rising more than 250%.

Rewind 12 months or so, and you'd find Alcatel-Lucent teetering on the edge of bankruptcy, as its cost structure simply wouldn't allow it to compete against some of its larger rivals in the ultra-competitive space. However, Alcatel-Lucent has since taken a number of decisive steps that have improved its position considerably.

For starters, Alcatel-Lucent arranged for a critical $2.1 billion in financing that was led by investment banks Credit Suisse and Goldman Sachs and helped it meet its short-term liquidity needs. Alcatel-Lucent also changed leadership and made some decisive strides to end unprofitable contracts and reduce overhead.

Is the stock still a buy? In this edition of our popular "Ask a Fool" series, tech and telecom analyst Andrew Tonner discusses whether he believes Alcatel-Lucent still looks like a buy today.

Finding the next great growth stock
Motley Fool co-founder David Gardner, founder of the world's No. 1 growth-stock newsletter, has developed a unique strategy for uncovering truly wealth-changing stock picks. And he wants to share it, along with a few of his favorite growth stock superstars, with you! It's a special 100% free report called "6 Picks for Ultimate Growth." So stop settling for index-hugging gains, and click here for instant access to a whole new game plan of stock picks to help power your portfolio.

The article Ask a Fool: Is Alcatel-Lucent Still a Buy? originally appeared on

Fool contributor Andrew Tonner has no position in any stocks mentioned. Follow Andrew and all his writing on Twitter at @AndrewTonner. The Motley Fool recommends Goldman Sachs. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Originally published