NT's problem may not be a short-term one!
Almost all telephone and IPS stocks are traded at 52 week low and show no sign of reversal, just check T, COVD, PSIX... If the market is right, all suggest that the demand for telephone call and IPS is weak (that is why most CELEs loss money).
Many other telecom equipment stocks have been trashed one by one such as LU, CMTN... over past few months. If the market is right, this suggests that all telecom stocks will be in trouble because of weak demand.
Since early this year, the market has cut these high PE stocks one after another. The big caps, C2Cs, Internets, Semis, .... fell half or more in a day or two or a month. At $80, NT's PE is over 100. The haircut cannot be avoid. At $45, NT is still pricy which still has a 60 forward PE.
If the market trend continues (cuting high PE stocks), NT will follow LU. |
