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Technology Stocks : Nortel Networks (NT) -- Ignore unavailable to you. Want to Upgrade?

To: Martin Goldenberg who wrote (3177)	8/4/1999 10:12:00 PM
From: Stocker	Respond to of 14638

The NT selling seems mainly technical to me. But, if you're looking for another explanation, ask yourself now many NT shares where bought just prior to the last earnings release, on margin or otherwise. With an 11% market decline and worse in net stocks, a lot of people are getting margin calls, or at least felling enough pain that they want to lighten up on stocks. If that's what people are thinking, then it's easy to see how NT would end up on the sell list given the strong performance since Oct. Also, NT has set the expectations bar pretty high for the rest of the year. That increases the odds of a disappointment vs. LU who tried to lower expectations somewhat. When sentiment turns like it has, people start to look for potential problems rather than shooting for the stars. I think some are doing that with NT right now. I don't see the deals announced today as being behind the selling. If anything, there may be a good time to buy more NT approaching if we watch carefully.