Sounds like the funds will be buying this dip in NT:
"People expected a lot, the company gave a lot, but that's not good enough in a market this nervous," said Stephen Gauthier, a portfolio manager at Pictet & Co., which oversees about $100 billion in assets, including Nortel shares. "Revenues were a bit on the light side, but the guidance is good."
"If anything, we'll be buying more," Gauthier said.
Nortel said third-quarter earnings from operations, excluding one-time charges, soared to $574 million, or 18 cents a share, compared with 11 cents for the same period a year earlier. Analysts surveyed by First Call forecast that the Brampton, Ontario-based company would earn 17 cents a share.
Revenue rose 42 percent to $7.3 billion, about $200 million shy of the average estimate of analysts polled by First Call.
Duncan Stewart, a portfolio manager at Tera Capital in Toronto, pointed out that while Nortel's revenue from its optical business grew 90 percent in the third quarter from the same period a year ago, it was actually slower than the 150-percent surge in the second-quarter.
That rattled many so-called momentum investors, Stewart said.
"Quarter over quarter, revenue from the optical side was down," Stewart said. "Growth actually fell, but that was really more of a problem with getting the equipment installed. They didn't have enough people."
"We're buying the stock here," he concluded. |
