Tag Archives: ERIC

8 Reasons To Buy The Fallen French Giant

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By Sneha Shah:

Introduction

Alcatel-Lucent (ALU) is one of the largest telecom equipment providers in the world with annual sales of ~$20 billion. The company was formed in 2006 by the merger of French company Alcatel and U.S. company Lucent Technologies. The company has a long heritage of telecom product development and possesses one of the largest telecom patent portfolios. ALU and other top Western telecom equipment companies like Nokia-Siemens and Ericsson (ERIC) have seen their profits plummet due to the advent of the Chinese telecom giants such as Huawei and ZTE. These companies have captured significant global market share from the western manufacturers through undercutting of the market leaders. This has been one of the primary reasons why ALU shares have fallen so drastically. The company’s management has been cutting costs and selling assets in order to return to profitability. However, their efforts have not borne fruit to date as the


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Wall Street Breakfast: Must-Know News

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Wall Street Breakfast Editors submit:

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BOE: British banks must raise extra £25B by year-end. U.K. banks must raise another £25B by the year-end to protect themselves from potential losses, the Bank of England has said, with the sector facing a total capital shortfall of £50B. The news helped send the FTSE, U.S. stock futures and the pound-dollar lower, although Barclays (BCS) and Lloyds (LYG) were higher at midday in London. HSBC (HBC) and RBS (RBS) were down.

Citigroup mulls slashing liquidity by $35B. Citigroup (C) is thinking about cutting its cash on hand by $35B, which could help the bank boost its earnings 2% this year by allowing it to cut debt or purchase higher-yielding assets. Even after reducing its available capital, Citigroup’s liquidity would still be 10% more than will be required under Basel III.

Cyprus works to avert run on banks. Cyprus has been preparing capital controls to


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Buy Nokia Hand Over Fist

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ByJonathan Verenger:

I have previously written about how Nokia (NOK) is a buy based on the belief that the sum of its parts is worth more than its whole. I suggested that while the stock was a buy there was a technical support around $3.25 to $3.4 that would prove to be a great spot to double down on the stock. The stock is now down around this level, which was the resistance level from the summer of 2012. I think the stock should be purchased aggressively right now.

In looking at the sum of its parts, the one bright spot that keeps standing out to me is the Nokia Siemens Network division and this is what I want to focus on in this article.

Nokia recently released its 20-F and in this report guidance calls for long-term operating margins of this segment to be between 5% and 10%.

Per


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Wall Street Breakfast: Must-Know News

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Wall Street Breakfast Editors submit:

Top Stories
Cyprus’ plan to raid bank deposits sends markets scuttling. Global equities, the euro and oil have slumped after the eurozone demanded that Cyprus tax bank savings in return for a €10B bailout. Cyprus’ government is reportedly considering a tax-free threshold for smaller deposits as it attempts to win over legislators for the levy ahead of a parliamentary debate later today. The publicized plan is to tax accounts of under €100,000 at 6.7% and those above that level at 9.9%. “This is a nuclear war on savings and wealth,” writes Jefferies’ David Zervos.

Boeing loses out to Airbus for massive Indonesian deal. Airbus (EADSF.PK) has won an order from Indonesia’s Lion Air for 234 Airbus A320 jets in a deal worth $24B. The booking is a blow to Boeing (BA), as Lion Air had been seen as a fortress for the U.S. company.

China retains Zhou as


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