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Technology Stocks : Nortel Networks (NT)

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To: pcyhuang who wrote (13460)11/5/2002 12:15:12 AM
From: Kevin Rose  Read Replies (2) of 14638
 
Ok, thanks again.

Assuming that is $US10, I think you'll have to color me 'respectively skeptical'. That would be a market cap of $US40b, roughly one half of Csco's current cap (which many believe is in itself too high). A P/S of 4 (assuming $2.5b/qtr), and a PE of, well, uh, hmmm.

Even if fundamentals supported a case for $10, I think there is too much pain and skepticism to support a run up to that point. A lot of people have been scarred by this stock, and would sell at a lot of points before $10. Can you support your case for $10? Thanks.
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