Nortel (NT): Alcatel-Lucent (ALU) Hangover Gets Worse

September 20, 2007 by Douglas A. McIntyre

Barron’s writes that RBC Capital is not looking for a turnaround at Nortel (NOT) anytime soon. The research firm’s opionion–“Investors continue to remains frustrated at Nortel’s pace of improvement and the company has yet to display meaningful reversals in market share loss in its numerous key segments such as GSM and optical, and recent weakness in Metro Ethernet.”

Nortel shares had been under pressure before, but when rival Alcatel-Lucent (ALU) disclosed that it would not meet its financial forecasts, the entire telecom equipment industry came under scrutiny by Wall St. Over the last three month, both stocks are down over 30%.

Alcatel-Lucent (ALU)

If Nortel and Alcatel-Lucent are both losing market share, where is it going?

Good question.

Douglas A. McIntyre

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