Scott Moritz
Alcatel's DSL Gear Drawing Favor From Baby Bells
Shares of Alcatel were at a 52-week high of $10 Tuesday, marking a nearly fivefold increase from September. The company is still what some investors call a turnaround story, and trades at 0.7 times 2003 sales estimates.
By comparison, Lucent(LU), which is pretty much in the same situation -- minus a hot product -- trades at nearly parity with this year's projected sales. And while it is easy to see Alcatel as a cheaper Lucent, this is still a very unforgiving market for gearmakers. Alcatel will probably enjoy some Wall Street attention around the SBC contract, but once the glee fades, investors will once again start to question the value of a company with limited sales growth and little or no profits. But hey, enjoy spring while it lasts.TheStreet Premium Services
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