Alcatel-Lucent ALU

Alcatel-Lucent is a global provider of mobile, fixed, IP, and optics technology, while also offering applications and services. Despite recent operational issues Alcatel-Lucent remains one of the world's premier telecommunication technology vendors and is able to provide comprehensive product offerings on a significant scale. Unfortunately, scale does not represent a structurally significant competitive advantage, and we believe that no competitive moat exists for the company. Competition is aggressive, while a high level of technological change characterizes the industry. In addition, issues with operational and financial leverage combined with pricing pressure have kept the company languishing relative to significant peers.