Ticker Shock: United Tech, BorgWarner, Alcatel-Lucent Get Downsized-Minyanville

Ticker Shock: United Tech, BorgWarner, Alcatel-Lucent Get Downsized

Glenn Curtis Dec 12, 2008 11:15 am

Ticker Shock: United Tech, BorgWarner, Alcatel-Lucent Get Downsized


		Friday's top stories and stocks with potential to move.

BorgWarner (BWA)

In similar news, the big-name auto parts supplier lowered its guidance for 2008.

The Michigan-based company indicated it’s looking for $1.85 to $1.95 a share excluding items. And that’s a bit of a bummer, because it’s a really sharp step down from the $2.25 to $2.35 a share (before items) it had previously been looking for.

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As per CEO Timothy Manganello:

“The earliest we expect to see any clarity in this situation is the end of the first quarter of 2009. We continue to have a strong balance sheet and ample liquidity. The fundamentals of our business remain strong, with growth driven by a technology focus on fuel economy and emissions reductions.”

But I’m not a taker here. In my mind, there are just too many uncertainties. Incidentally, one thing I’d like to see (besides more forward-looking visibility) is a little activity on the insider-buying front.

Alcatel-Lucent (ALU)

The well-known telecom-equipment maker is apparently going to be handing out pink slips - about 1,000 of them to managers; 5,000 to contractors.

To be clear, I think it could certainly use the cost savings - a lot of folks want to see this company make money.

But am I all jazzed up and on the phone placing a trade? Nah.

My eyes were also drawn to the following in the release: “The company's initial forecast is to achieve an adjusted operating profit around break-even in 2009.”

Long story short, I’m taking a pass for now. I’d rather wait to see this story play out a bit before placing a wager, so to speak - and there are so many other opportunities out there. At under $5 a share, it could have trouble getting a good following.

Have a great day and a great weekend. TGIF!


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