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Technology Stocks : Nortel Networks (NT)

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To: hari t who started this subject5/29/2004 11:28:43 AM
From: Cooters   of 14638
 
I was thinking this morning about the large R&D budget Nortel maintains(and has maintained) and how the ratio of R&D to market value might be a valuable indicator. I did a search to find a screener to look at what this ratio might be across the industry and found an article looking at the same concept.

smartmoney.com

<snip>
The opportunities are to be found at the other end of the spectrum. When a company's stock is so beaten down that the R&D budget becomes a significant component of share price, investors get lots of research for their money.
<snip>

Of course there is a specific reason Nortel is beaten down at the moment, but the idea is the market usually rewards companies with large R&D budgets with a premium valuation.

So, here's hoping we get from here to there......

Coot
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