Nortel Networks (NT) Message Board

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Technology Stocks : Nortel Networks (NT)

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To: hari t who started this subject	8/30/2001 11:09:01 AM
From: Dan Hamilton	Read Replies (1) of 14638

No bottom in sight yet for telco sector. I would think NT will trade down to $7 or $8 Cdn soon... Telecom services analyst Adam Quinton says WorldCom issued its latest 8K, in which management lowered their 2002 capex spending plans to $5.5 billion, over 24% below pervious capex spending expectations for $7. This has a material impact in telecom equipment spending in North America - and, as a result, Quinton is reducing his industry telecom equipment spending estimates accordingly, down from previous expectations for a 2002 decline of 12%, to a 14% decline. He's keeping a careful eye on similar capex reductions from competitors like Qwest and Sprint. WorldCom, WCOM, rated C-3-2 is currently $12.44. Quinton still doesn't see good value in the stock. One of WorldCom's largest suppliers is Nortel. Telecom equipment analyst Tom Astle says that this provides further evidence of capacity utilization issues in the group and his theory on 'the optical dead zone.' He'd rather wait for the macro carrier capex spending environment to improve before approaching his telecom equipment names. Astle remains cautious on Nortel, NT, rated C-3-1, currently Cdn$10.15.

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