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Technology Stocks : Nortel Networks (NT)
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To: WiseGuy who wrote (7470)10/24/2000 8:18:59 PM
From: couldawoulda  Read Replies (1) of 14638
 
NT - the good & bad:

The Bad:

1. Missed revenue estimates by approx. 350 million U.S.
2. Optical division grew at 90%. Analysts were expecting 120% growth
3. Going forward, guidance for optical is above 10 billion for the year vs. a 12 billion year target signalling that they may come in short after getting a touch too ahead of themselves it would seem
4. Enterprise continues to bite the big one here rising just 6%

The Good:

1. Beat the street by .01 cent
2. Year end eps growth guided up to the low 40's from the high 30's
3. Reiterated (as stated in the 2nd qtr.) that 30 to 35 percent growth is to be expected in 2001.
4. Optical remains robust with a build up in inventory during the 3rd. qtr. causing "an artificial clipping of the growth rate". Rebound in 4th qtr. expected which is close to being "sold out".
5. Wireless numbers are stellar with their major contract with AT&T "not even starting to show up in the numbers as of yet." Growth rate here equals 56%

NT's closing price AH is 48 3/4's. Sell-off justified?

With a price of $50 U.S., NT's p/e now stands at 48, well below the mean average of companies trading in the optical and networking sector.

And the street.com (gotta love 'em) as does CNBC continues to report NT has guided forecasts lower for 2001 which clearly isn't the case here.
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