Nortel Networks (NT) Message Board

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Technology Stocks : Nortel Networks (NT)

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To: John Paquet who wrote (11744)	9/6/2001 3:33:39 PM
From: rrufff	Read Replies (1) of 14638

Hi John, I've been following the debate between you and Rob. I was wondering if you have a rationale for a turn around other than a return to speculative fever of 2-3 years ago? Hasn't NT basically cooked its own goose by wasting money on its CEO (wouldn't a few hundred million help about now?), acquisitions of inflated companies with inflated stock to the tune that there are now over 3 billion shares, and huge amounts of debt? I really would like to see an optimists argument but even if the economy turns around, it takes a lot of revenue to produce the earnings (after interest on that huge debt) that divided by the number of shares comes to any meaningful number. As far as a takeout, who would have the resources to take on the huge debt and what would be gained? CSCO can buy upstart technology a lot cheaper. The only argument I could see for CSCO would be in bragging rights for defeating its arch rival. Not a good business reason and probably not enough to get by antitrust arguments. How about MSFT? or INTC or NOK. I am trying to stretch to find a company with good balance sheet that would take on the debt, the culture and the rapidly decreasing equity of NT.

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