People on this board talk about NT like it's a risky play and survival is questionable. Are you people for real? NT is not a 5 year old company. They have been announcing deals which shows they have confident customers. Too many people equate stock price with survival. When NT was at $80+/sh, did anyone question their survival? IMO the stock price has been pounded far beyond what's rational and given that they are not the only company suffering the fate of reduced spending by their customers. When you look at many of the companies in the telcomm space, you can see NT's stock price is way oversold. NT has products and complete solutions, and customers who need those products and choose to buy from NT. In the last few years loads of fibre have been planted into the ground far beyond what we necessarily need for the short term when we have DWDM type products that can squeeze more bandwidth into the same strand of fibre. IMO, those companies like Corning which focus primarily on fibre sales are those in the most precarious position of survivability yet their shares haven't been pounded down like NT's. Companies in more serious trouble are companies like Tellabs, Ciena, Sycamore etc which offer a focused product line and which many large customers may not be too keen on buying when they can buy from a full service provider like NT, Lucent etc ..
If NT doesn't return to profitability by the end of this year, then for sure it will be a buyout candidate. No matter how you look at the situation, NT is worth much more than the current marketcap.
IMO, stock prices no longer reflect as much of the state of the company as it used to in the past. Just like marketcaps of $240B didn't reflect NT's or Lucent's true fundamentals, today we have a reversal where stock prices discount far too much. Today, stock prices trade more at the mercy of unscrupulous analysts (or are they just shorts in analysts' clothing these days?) who were telling everyone two years ago to buy till you drop the exact same stock they now plunder.
You can all chitchat all you want on this board but you won't move the stock one penny.There are more devious people at work pounding the stock these days. Personally, I hope they get the burn of the century.
At this point in time, buy and hold is my strategy with this stock.
So long to all. See you in 2 years. |
