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Technology Stocks : Nortel Networks (NT)

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To: Frank Pembleton who wrote (10892)6/20/2001 2:26:21 PM
From: Dan Hamilton  Read Replies (1) of 14638
 
Looking back on the past couple of troughs, NT bottomed around 0.9 times sales. But things are worse now in terms of company sentiment, sector sentiment and market sentiment. So 0.5 times sales is not unreasonable as a downside target. Add the fact that one can only conservatively expect 10% CAGR growth post 2002, and it's not a pretty picture.

Somewhere between $3.14 U.S. (.5 times sales), and $5.64 U.S. (.9 times sales) is a good entry point for LTBH, IMO.
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