Alcatel-Lucent Stock Forecast: Great Time To Buy It Before Nokia Deal

Alcatel-Lucent Stock Forecast

I Know First supplies financial services, mainly through stock forecasts via their predictive algorithm. The algorithm incorporates a 15-year database, and utilizes it to predict the flow of money across 2000 markets. The self-learning algorithm uses artificial intelligence, predictive models based on artificial neural networks, and genetic algorithms to predict money movements within various markets.

The algorithm produces a forecast with a signal and a predictability indicator. The signal is the number in the middle of the box. The predictability is the number at the bottom of the box. At the top, a specific asset is identified. This format is consistent across all predictions. The middle number is indicative of strength and direction, not a price target. The bottom number, the predictability, signifies a confidence level.

ALU stock forecats

(Figure 1:ALU forecast 7th June ’15)

I Know First has had success predicting the movement of Alcatel-Lucent’s stock price in the past. In this one-month forecast from June 7th, Alcatel-Lucent had a bearish signal with a signal strength of -27.98 and a predictability indicator of -0.1. In accordance with the algorithm’s prediction, the stock price decreased by -9.66% during that time.


Having explained how I Know First’s algorithm works and providing an example of its success in the past, it is worthwhile to see if the algorithm agrees with the bullish fundamental analysis of the company. The three-month forecast for Alcatel-Lucent is included.

alcatel-lucent stock forecast

(Figure 2: ALU forecast 8th July ’15)

The above forecast is the most-recent forecast from July 8th 2015 and is for the long-term period of three months. This forecast is bullish, with a signal strength of 33.47 and predictability of 0.45. The algorithm correlates with the fundamental analysis where the general consensus is that via the merger with Nokia and its expansion in China, ALU stock is bound to rise in the long term. Alcatel Lucent’s current low stock price creates an opportunity to investors with tremendous upside potential.

Positive signal strength does not mean investors should automatically buy the stock. Dr. Roitman, who created the algorithm, created rules for entry for a stock such as Gilead Sciences. Using this trading strategy, an investor should buy a stock if the last 5 signal strength’s average is positive and if the last closing price is above the 5-day moving average price. When both of these conditions are met, it is a good time to initiate a position in the stock.