I usually don't pay that much attention to book value, since it is more of an accounting measure than an enterprise valuation measure.
When stocks are on the ropes in a sector, however, I do look closely at long and short term debt, quick and current ratios, upcoming major debt payments, etc. and compare that to cash and short term investments.
I believe NT will be on of the survivors of this steep recession, and their product mix is diverse enough and strong enough to allow a rebound with improving industry and economic conditions. Ditto for LU, JDSU, ERICY, GLW, etc.
A good bet is to buy a basket of the leading telecom companies, but only the likely survivors. I have been aggressively buying NT, LU, JDSU, and ERICY. I have been lightening up on GLW, but will likely buy more in the low to mid $4 range. GLW will do well long term, but is "dead money" for the short term (12 - 18 months). |
