Alcatel-Lucent (NYSE:ALU): Current price $1.96
On Wednesday, the telecommunications equipment maker initiated a significant effort to revitalize itself by cutting out divisions and jobs, as part of a deep cost-reduction program. Shares are up more than 6 percent in late morning trading on the announcement, as investors anticipate that the plan will now yield the solid profits that have not been seen at Alcatel in years. The Paris-based firm supplies operators like AT&T, Verizon, and Orange, and reported that it will sell off over $1.33 billion in assets through 2015, hoping for that amount in cost savings.
Pfizer (NYSE:PFE): Current price $29.70
Pfizer investors should think about participating in the Zoetis exchange, says BMO Capital, which believes that they currently have an opportunity to own Zoetis at between $29.40 and $29.70 per share, which would be 15 percent under the research firm’s valuation of $34 per share. Beyond that, BMO says that there is strong support for Zoetis below $30, which it thinks reduces downside risk, and recommends that Pfizer investors tender approximately one-fifth of their shares into the exchange because, with the offer probably being oversubscribed, not every tendered share will be converted to Zoetis.
Ford Motor Company (NYSE:F): Current price $15.55
Ford continues to grow in China, as it inaugurates a $500-million engine factory in Chongqing (formerly Chungking) on Wednesday in yet another indication of its increasing footprint in the planet’s biggest automotive market. The automaker’s joint venture with Changan Ford Automotive has an initial yearly capacity of 400,000 engines, producing 1-liter three-cylinder EcoBoosts and 1.5-liter four-cylinder units, which more than doubles Changan Ford’s annual output capacity of 350,000 engines.