Prudential

Agere shares steady on first day

Trading volume is not heavy as Allentown company is spun off.

images-3Lucent Technologies’ stock lost more than 20 percent of its value Monday as investors reacted to Saturday’s Agere Systems spinoff.

Lucent closed Monday at $3.64 a share, down 21.7 percent from Friday’s close of $4.65 a share. Almost 31 million Lucent shares traded on the New York Stock Exchange, slightly below the average volume of 33 million shares. (read more)


Lucent risks collapse despite cuts

imgres-6Analysts fear Lucent Technologies’ sweeping measures to lower its cost structure to cope with falling revenue streams may not be enough to stave off collapse if market conditions deteriorate further.

Lucent urgently needed to discontinue unprofitable product lines and focus on a smaller product portfolio as well as speed up its plans for 10,000 additional job cuts, they said.

Robert W Baird & Co analyst Theodore Moreau said: ‘There is no guarantee that stabilisation of the market will come. It is teetering one way or the other.

‘If things get worse, it will need reorganisation or recapitalisation. Chapter 11 bankruptcy could be a possibility,’ he said. (read more)


Prudential Sees Signs Cisco’s EMEA Business Recovering

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NEW YORK (CBS.MW) — Analyst Inder Singh at Prudential Financial reiterated his “overweight” rating and $25 price target Cisco Systems’ CSCO +1.42% shares, citing evidence that the networker’s server message block (SMB) business in Europe, the Middle East and Africa (EMEA) is recovering. Singh also expects Internet protocol (IP) and virtual private network (VPN) deployments to yield an upgrade cycle in new markets like Russia and among new entrants to the European Union. The stock closed Friday down a nickel at $20.66. (read more)


 Avici Reroutes Business, Puts Emphasis on Network Software

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In the late ’90s Avici Systems Inc. burst on to the tech scene with an ambitious product: the world’s largest router, capable of directing massive rivers of data on global phone networks. The company went public in 2000 with a spectacular initial market value of $4.5 billion. (read more)

Lucent’s Deal with Alcatel, as Translated for Europe

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PARIS, April 3 — The chief executives of Lucent Technologies and Alcatel are presenting their new alliance as a triumphant merger of two companies that speak the same language of technological innovation. But at a joint news conference here on Monday, they sometimes appeared lost in translation, stumbling over pronunciation and mangling words in both French and English. (read more)


Lucent Predicts Wireline Recovery In H2

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After a meeting with Lucent Technologies ‘ president of network solutions, Prudential Equity Group analyst Inder Singh analyst maintained a price target of $4 on the stock but expects trading to continue to be tied to the value of Alcatel ’s shares until the merger is completed. (read more)


Profile Inder Singh

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An executive and financial strategist for more than two decades at multiple companies, including two on Wall Street, IInder Singh is the recipient of numerous accolades. Including best-of ratings by Bloomberg Markets, StarMine, and Institutional Investor, Singh was a Top Fundamental Analyst for three years in a row and consistently ranked as a top-three revenue producer while with Prudential Securities (now Wachovia Securities) from 2001 to 2007.   (read more)


Alcatel buys out Lucent Technologies

imgres-2 France’s Alcatel SA will acquire U.S.-based rival telecom equipment maker Lucent Technologies Inc. in a $13.4 billion stock swap that would form an industry powerhouse with a product line broad enough to entice customers in a consolidating telecom industry.

Company leaders said Sunday they plan to shed 10 percent of the combined work force — about 8,800 jobs — after the deal closes. (read more)


Alcatel, Lucent Announce $13.4B Merger

imgres-3PARIS –  France’s Alcatel SA (ALA) will acquire rival telecom equipment maker Lucent Technologies Inc. (LU) in a $13.4 billion (11.1 billion euro) stock swap that would form an industry powerhouse with a product line broad enough to entice customers in a consolidating telecom industry.

Company leaders said Sunday they plan to shed 10 percent of the combined work force — about 8,800 jobs — after the deal closes. (read more)


 

Lucent to seek a reverse stock split

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CHICAGO (Reuters) — Telecommunications equipment maker Lucent Technologies(LU), hobbled by the steep downturn in the telecom market, said Friday it will seek shareholder approval for a reverse stock split, a move aimed at preventing its stock’s removal from the New York Stock Exchange. (Related storyTech firms try reverse splits to lift stocks)

The company said it plans a reverse stock split to lift its common stock price, which has hovered at or below $1 for about a month, to between $15 and $25 a share. Lucent shareholders will vote on the plan at an annual meeting in February. (read more)


Prudential Ups Juniper Networks Estimate

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Analyst Inder Singh says Juniper delivered results ahead of his estimates, fueled by double-digit growth and higher-than-expected Netscreen revenue. Singh thinks the company continues to experience strong momentum in routing, and he sees solid demand trends in security. He says overall margins should continue to improve in the second half of the year.
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Foundry slides amid Prudential downgrade

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NEW YORK (MarketWatch) — Shares of Foundry Networks were shedding 2.8% after Prudential downgraded the networker to underweight from neutral, citing concerns over competition. Analyst Inder Singh also cut his stock price target to $7 from $12, his 2005 earnings estimate to 27 cents a share from 30 cents and his 2006 forecast to 27 cents a share from 43 cents. (read more)



Foundry Soars on Q1

Shares of Foundry Networks Inc. (Nasdaq: FDRY) jumped more than 7 percent today after the company’s upbeat earnings report.

Foundry shares were up $1.08 (7.4%) at $15.72 midday. The stock had begun the day up as much as 10 percent. 

Foundry isn’t reporting full financials, as the company has joined all the cool kids by going through stock-options restatements. (See Options Scandal Singes Foundry.) (read more)



Nokia Facing Slowing Handset Market, Patent Battle

Prudential’s Inder Singh today downgraded his rating on Nokia (NOK) to Neutral from Overweight, noting that “a number of uncertain elements will likely loom over NOK during the next few [quarters], creating too many moving parts in ‘07.” (read more)



Qualcomm Seeks Arbitration In Nokia Dispute

NEW YORK -(Dow Jones)- In the latest twist to the licensing dispute between Qualcomm and Nokia, Qualcomm wants an arbitrator to rule that continued use of its technology would result in the automatic extension of the companies’ current agreement.
The two companies are barreling into the Monday deadline, in which their existing cross-licensing agreement expires. Qualcomm is arguing that use of its technology beyond that date indicates Nokia’s willingness to extend the current agreement and terms. The San Diego company is taking its case to the American Arbitration Association. (read more)



Qualcomm files Nokia suits ahead of deadline

NEW YORK — Qualcomm has filed two new patent infringement lawsuits against Nokia, marking the latest punch in an increasingly bitter fight over mobile technology licenses.
The suits will dim hopes of the companies reaching an agreement before the expiration of their technology license contract next Monday. Qualcomm has often said that it was unlikely to reach a pact with the world’s biggest cellphone maker in time, but some investors had hoped this would happen. (read more)



Post Nokia-Siemens, whither Nortel, others?

LONDON — Analysts believe the carrier infrastructure joint venture announced by Nokia Corp. and Siemens AG will consolidate their power in some markets, especially wireless, raising many questions for competitors and business partners such as Nortel Networks Ltd., NEC Corp., Motorola Inc. and Juniper Networks Inc (read more)



Qualcomm seeks arbitration as Nokia deadline looms

(Reuters) – Qualcomm Inc. on Thursday asked arbitrators to intervene in its legal fight with No. 1 mobile phone maker Nokia, saying it was unlikely the two companies could reach an agreement on a key licensing pact due to expire next week.
The agreement over technology patents between wireless chip maker Qualcomm and Nokia expires on Monday, but an increasingly bitter battle over fees for the technology has reinforced investor fears that they will fail to reach a new deal.(read more)


Ericsson battles Lucent for Riverstone

imgres-7Ericsson submitted a bid yesterday for the assets of Riverstone Networks, challenging Lucent Technologies’ acquisition of the carrier Ethernet equipment vendor.

The Swedish firm offered $178 million in cash for Riverstone’s assets, topping the $170 million cash offerLucent made on Feb. 7, 2006.

The two vendors will now bid for the company in a bankruptcy court auction to be held Monday, March 20, at 10:00 am Eastern time in New York. (read more)


Alcatel, Lucent Technologies in $34 Billion Merger Talks

imgres-8PARIS/AMSTERDAM – Alcatel is in merger talks with smaller U.S. rival Lucent Technologies to create the world’s biggest telecoms equipment company, with combined sales of 21 billion euros ($25.33 billion).

The announcement drove Alcatel shares to their highest level in two years, while Lucent shares jumped over 10 percent. (read more)


Lucent Q3 profit falls, in line with warning

NEW YORK – Lucent Technologies said on Wednesday its quarterly profit fell 79 percent, in line with its warning earlier this month, due to lower sales of wireless network equipment in North America.

imgres-9NEW YORK (Reuters) – Lucent Technologies said on Wednesday its quarterly profit fell 79 percent, in line with its warning earlier this month, due to lower sales of wireless network equipment in North America.

Lucent, due to be acquired by French communications equipment maker Alcatel later this year, said net income dropped to US$79 million, or 2 cents per diluted share, in its fiscal third quarter ended June 30. (read more)


Lucent signs $5 billion pact with Verizon Wireless

imgres-10Lucent Technologies Inc. has signed a contract worth at least $5 billion to supply equipment, software and services to help Verizon Wireless improve its network, the companies said on Tuesday.

The contract renews an agreement dating to 2001 under which Verizon Wireless, a joint venture of Verizon Communications and Britain’s Vodafone Group Plc, has already spent $5 billion with Lucent. (read more)


Bulls, Bears Debate Lucent

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Lucent Technologies was the most actively traded stock on the New York Stock Exchange in 2004, and remains high on the list with a wide following on Wall Street. “Everyone owns a little bit of it — whether they want to admit it,” Morningstar analyst John Slack said. Analysts attribute the robust volume to Lucent’s low price and large number of shares outstanding. At $3, the telecom-equipment maker has been in a rut for years, despite its seemingly high profile. In December 1999, the former AT&T Corp. unit traded at $65. While the glory days may be gone for good, there have been flashes of hope. Analysts recently applauded Lucent’s decision to focus on its wireless business, and an upgrade lifted the stock 4%. Bearish analysts, though, say Lucent’s fixed-line business is too much of a drag. (Analysts’ ratings and disclosures follow.) (read more)



Motorola Deal Expected To Improve Qualcomm’s Growth Outlook

Shares of Qualcomm traded higher Monday after the company said it will supply Motorola with chips in mobile cell phones equipped with UTMS third-generation technology.
The agreement expands the companies’ relationship since Qualcomm currently provides Motorola with CDMA chipsets. UMTS, or Universal Mobile Telecommunications System, is a third-generation version of GSM.
Motorola fell slightly in afternoon trading Monday while Qualcomm shares gained 2.3%. (read more)(read more)



Motorola May Emerge Winner In Bharat Contract

After Bharat Sanchar Nigam Ltd., an Indian telephone services operator, delayed bids again for a 60 million line GSM contract, Prudential Equity Group analyst Inder Singh said that Motorolacould emerge the “unlikely winner” of the mega-deal.
LM Ericsson and Nokia are the conventional favorites for the BSNL deal due to their “strong balance sheets and income statements,” the analyst said in a report Friday. Other “major contenders” include Siemens and Alcatel.(read more)



Motorola investors want new profit strategy, phones

Prudential analyst Inder Singh said Motorola may cut costs through staff reductions or research or marketing expenses.
Others said Motorola is better off giving up short-term profits to hold on to its hard-won market share of 22.4 percent in the third quarter from 13 percent about two years ago. (read more)



Motorola shares rise on deal speculation

(Reuters) – Shares of Motorola Inc MOT.N rose more than 3 percent on Tuesday on numerous rumors including one that it could be subject to a takeover and another that it could buy smaller rival Palm Inc PALM.O.
Analysts said the share move could also mean that billionaire investor Carl Icahn, who has taken a stake of about 2.48 percent in Motorola and is seeking a seat on its board, could be accumulating more shares in world’s No. 2 mobile phone maker.(read more)



UPDATE 3-Motorola quarterly profit falls, margins disappoint

Jan 19 (Reuters) – Motorola Inc. MOT.N, the world’s second-biggest cell phone maker, said on Friday fourth- quarter profit halved, hurt by a sharp fall in phone prices as it tried to hold on to market share amid stiff competition.(read more)



Wait Wait Wait, MOTOROLA WARNING AGAIN!!!!!

NEW YORK (Reuters) – Motorola Inc. (NYSE:MOT – News) warned on Wednesday it will post a first-quarter loss and cut its revenue forecast to far below Wall Street expectations due to weak cell phone sales, driving shares down nearly 6 percent.

The No. 2 maker of mobile phones, which has disappointed investors for the last two quarters, also said it would accelerate its share buyback program, appearing to give in to demands by billionaire investor Carl Icahn.(read more)



Dell hires Motorola executive for consumer unit

SAN FRANCISCO (Reuters) – Dell Inc. said on Friday it hired the head of Motorola Inc.’s mobile phone unit, making him the second high-profile executive Michael Dell has hired since he reclaimed the CEO title at the end of last month.
Ron Garriques, who headed Motorola’s most important division, will become president of Dell’s global consumer division, effective February 19.(read more)



Qualcomm posts higher Q1 net

NEW YORK (Reuters) - Qualcomm Inc. (QCOM.O) posted a 4.5 percent rise in quarterly profit, driven by sales of chips for high-end cell phones, and affirmed its 2007 outlook, reassuring investors after disappointing views from rivals.
The news on Wednesday pushed Qualcomm shares up more than 2 percent in after-hours trading. Analysts were cheered by its estimate of average cell phone selling prices (ASP) at $210 in 2007, higher than an earlier view of $205.
“I think there were fears going in that the company might reduce guidance for the year,” said Prudential analyst Inder Singh. “And counter to what we’ve been hearing from most of their peers in the industry, handset ASP estimates at Qualcomm appear to be going up and not down.”(read more)



Qualcomm files lawsuit against Nokia

NEW YORK — Qualcomm Inc. is suing Nokia Corp. for alleged patent infringement, firing back quickly in a widening dispute over next-generation wireless technologies one week after Nokia and five other companies filed an antitrust complaint against Qualcomm in Europe.
The suit, filed Friday by Qualcomm in a federal court in San Diego, charges that Nokia cellphones sold in the United States infringe on 11 patents for improving wireless Internet access and data transmission on the dominant cellular standard — GSM, or Global System for Mobile.(read more)