G'day all - hi David, I too agree with you to some degree that NT is not a cheap stock anymore. However, if we are to look at the stock market today, the world's markets in general and N American markets in particular, NT has a better position than most in the growth arena. More important, p/e and p/s [ttm] are obviously the basic numbers one should look at; however, it depends on where would most people put NT in which category, growth or value. NT is definitely no longer a value stock; therefore, the metrics like free cash flow is unlikely the key number. One can look at growth stock in many ways also. For example, mindmeld's implicit view of NT vs the cap leader CSCO. Other things to consider are multi year growth prospect and barrier to entry. Is NT a concept stock? It is debatable. OC192 is being installed all over the place. The fact that GBLX took a bad spill last Friday is indicative that clients of NT, CSCO and LU etc are spending the money. Wireless networks are in build out mode in the developed countries. Its prospect in the developing countries are even better. The old stats suggest NT controls 70% N American backbones. The new stats say NT is building 32 out of 40 networks in Europe. Qtera is not a concept either. Test is being done. Cos like GBLX are likely to deploy a reliable long haul technologies to cut cost to appease the angry shareholders. Personally, I would keep NT anytime when compared to most of the dotcoms, or even people like CIEN and JNPR [both of which are highly specialized niche players [not sure if they are a clear leader though] in their area but too narrow to sustain a downturn in their respective segment.]
best, B |
