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Technology Stocks : Nortel Networks (NT)

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To: John Paquet who wrote (10841)6/17/2001 11:43:29 PM
From: Stock Farmer  Read Replies (1) of 14638
 
John - NT likely to go under "fair" value as it heads into the penalty box.

Also, the "forget about second half recovery" message is only starting to come out, so you can expect sector depression.

Nevertheless, go back 10 years and check NT stock price. If I recall, NT was going through serious serious cash flow problems. At that time the stock was about three and change per share, split adjusted. So three times after ten years makes 12% compound annual return.

I don't know about you, but 12%/y is a pretty good long-term return. Especially when measured from the bottom of a very dim well. Which tells you that NT either fell from unjustified heights, or it has much farther to fall. Maybe both.

Now... the multi-billion dollar question is whether or not NT's business is as robust now as it was back then.

John.
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