Nortel Networks (NT) Message Board

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Technology Stocks : Nortel Networks (NT)

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To: davidtrx who wrote (14072)	8/26/2004 2:42:28 PM
From: tom pope	Read Replies (2) of 14638

My point was to suggest that NT is binary at the present time. If, as you and the other David suggest, gross margins continue to deteriorate,it's not a question of 3.50 or 3.25 or whatever. It's 100% that it will be under - well under - $3. OTOH, if there is an improvement in margins as the company is aiming for, then the operating leverage tells me that it's 100% certain that the price will be north of 4. Don't know how far north, but north it will be. In other words, there are only two outcomes, which is why I said in an earlier post that 3.25 was a fantasy number. It's not an equilibrium level.

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