I Know First Review

Alcatel-Lucent S.A., a French global telecommunications equipment company, was recently acquisitioned by Nokia Corporation. Prior to the merging of the two companies, Alcatel provided Internet protocol (IP) and cloud networking, as well as ultra-broadband access across the globe.

I Know First wrote a Seeking Alpha article about Alcatel-Lucent on July 15th, 2015. The article argued that ALU stock would rise, in accordance with the algorithm’s bullish signal, for a couple of reasons. A new partnership the company forged with Nokia, along with two contracts solidifying a presence in China were thought to make ALU a global force in mobile equipment in the coming year. Since the article was written, ALU stock shares have gone up 15%.

In early 2015, Nokia (NYSE: NOK) announced interest in acquiring Alcatel-Lucent in the coming year. Initially, investors were concerned about intense market competition and soft demand. Analysts also voiced apprehension, warning that competitors may attempt to exploit uncertainty held by consumers.

Despite these concerns, the merger has gone smoothly and approval has already come from global regulators. China’s Ministry of Commerce gave conditional approval, based mainly on patent licensing as well as a proposed joint venture between Nokia and China’s state-owned Huaxin. French regulators have also given approval at the point, and the new structure between the companies is taking firmer shape.

Alcatel share prices rose another 2.6% in the last trading season as the integration between the companies solidifies. Analysts, now, are praising the relative strengths of the companies and how they compliment each other. While Alcatel-Lucent specializes in routers and equipment used in making broadband networks, Nokia is known mainly for their work in wireless networks.

Both Alcatel-Lucent and Nokia shareholders have seen rises in stock prices since the article was posted.

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 7,000 assets. The self-learning algorithm uses artificial intelligence, predictive models based on artificial neural networks, and genetic algorithms to predict money movements within various markets.

I Know First published a bullish forecast on Alcatel-Lucent. The three-month forecast for Alcatel is included below. For this forecast, the algorithm gave a signal of 33.47 and predictability of 0.45.

Since this algorithmic forecast, ALU stock shares have gone up 15%.

Previously I Know First’s Algorithm predicted the performance of Alcatel-Lucent for the period between the 7th of June and the 7th of July, 2015. As we can see in the 1-month forecast on the left, I Know First had bearish signal for ALU and, as predicted, the stock lost 9.66% as seen on the right. Overall, this package did well for investors, returning an average of 10.57% compared to the S&P 500’s loss of 0.55% in the same month-long period.