Playing Telecom's Shakeup

Communications equipment stocks, already the best-performing information-technology sub-industry this year, got a bigger boost on Mar. 24 from the announcement from major players Alcatel (ALA) and Lucent (LU) that they're in discussions to merge. "In our opinion, consolidation is long overdue in a communications equipment market oversaturated with a plethora of vendors," says Ari Bensinger, who follows the group for Standard & Poor's Equity Research.

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