Alcatel's (ALU) Massive Patent Portfolio Could Unlock Billions in Market Cap
Tweet
Share
E-mail
Get Alerts ALU Hot Sheet
Join SI Premium – FREE
Alcatel-Lucent SA (NYSE: ALU) shares are ripping higher this morning following reports the company's patents may be worth as much as the company itself.
Alcatel shares fell about 30 percent last month, putting the company's market cap around $8.77 billion. Downside in the stock was intensified when Alcatel reported Q3 earnings results late last week.
But all may not be lost for investors. According to some analysts, Alcatel's patents could be worth around $9 billion by themself. The number is twice as much as a consortium led by Apple (Nasdaq: AAPL) and Microsoft (Nasdaq: MSFT) paid for Nortel Network's patents last month.
Looking at the company on a sum-of-parts basis, Alcatel's 18,800 U.S. patent portfolio pushes its value past the $20 billion mark, according to Bloomberg.
And analysts are all over it. Some say Alcatel will return to profitability, and see shares getting to €3.79 in the next 12-months, a 59 percent gain from €2.38 where it trades currently.
Alcatel could easily unlock value with strategic selling. As recently as April, word was flying that Alcatel was shopping around its Enterprise Telecom-Gear business.
With investors taking quite a hit over the last few weeks, and shares at the lowest point since February, Alcatel would do well to explore some options to return value.
Shares are up 9 percent early Friday.
Alcatel shares fell about 30 percent last month, putting the company's market cap around $8.77 billion. Downside in the stock was intensified when Alcatel reported Q3 earnings results late last week.
But all may not be lost for investors. According to some analysts, Alcatel's patents could be worth around $9 billion by themself. The number is twice as much as a consortium led by Apple (Nasdaq: AAPL) and Microsoft (Nasdaq: MSFT) paid for Nortel Network's patents last month.
Looking at the company on a sum-of-parts basis, Alcatel's 18,800 U.S. patent portfolio pushes its value past the $20 billion mark, according to Bloomberg.
And analysts are all over it. Some say Alcatel will return to profitability, and see shares getting to €3.79 in the next 12-months, a 59 percent gain from €2.38 where it trades currently.
Alcatel could easily unlock value with strategic selling. As recently as April, word was flying that Alcatel was shopping around its Enterprise Telecom-Gear business.
With investors taking quite a hit over the last few weeks, and shares at the lowest point since February, Alcatel would do well to explore some options to return value.
Shares are up 9 percent early Friday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Walmart (WMT) PT Lowered to $130 at UBS on Investment Narrative's Competing Dynamics
- BMO starts chip stocks coverage: Here are its preferred picks
- Intchains Group Ltd (ICG) PT Lowered to $2 at Benchmark Following 1H Results
Create E-mail Alert Related Categories
Insiders' BlogRelated Entities
EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
