Nortel Networks (NT) Message Board

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Technology Stocks : Nortel Networks (NT)

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To: Bosco who wrote (3173)	8/4/1999 10:46:00 PM
From: John Messbauer	Read Replies (1) of 14638

Bosco, I think a few thing are going on here. 1) The market normally takes a dip in August. 2) The sell off of the mfg. is not really a break even at best. It has been said NT will saved $250 million a year. Mfg typically absorbs a lot of overhead. That will be gone and don't forget these "new suppliers" will make about 10-15% margin on the products. Currently mfg. is not a profit center.3)From one who currently responsible for Engineering & Mfg. operations, new product induction, if not fully product tested can and does cost mega $$$ to correct. These companies are now profit centers which means you pay more for "groofs". I must agree that the dip below $84 was a shock but the company is a solid hold in my book even at a lower price. Regards, John

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