Shares of Alcatel-Lucent were up 10% on Friday, thanks to news that the company had obtained a $2.1 billion senior secured credit facility from Goldman Sachs and Credit Suisse . While this is excellent short-term news for the company and for investors, as it will allow Alcatel to refinance existing debt and cut costs, Motley Fool tech and telecom analyst Andrew Tonner fears that this is only buying time for the company. Cost savings won't change the overall headwinds the business is facing today as a whole.
With big finance firms still trading at deep discounts to their historic norms, investors everywhere are wondering if this is the new normal, or whether finance stocks are a screaming buy today. The answer depends on the company, so to help figure out whether Goldman Sachs is a buy today, I invite you to read our premium research report on the company today. Click here now for instant access!
The article Is Alcatel-Lucent Back From the Grave? originally appeared on Fool.com.Andrew Tonner has no positions in the stocks mentioned above. Brendan Byrnes has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend Goldman Sachs Group. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.