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

To: SKIP PAUL who wrote (4214)	1/9/2000 11:42:00 AM
From: jack bittner	Read Replies (2) \| Respond to of 14638

jdsu, qcom and many, many more are miles above a 1:1 peg ratio. why would the market hold nortel to a stricter standard? i ask not to imply an answer, but honestly to consider the pro's and con's. pro nt: the market is ready to pay up for uniqueness, a franchise by which ben graham and others mean a highly protected position, which nt has in OC-(optical carrier)-192 that transmits 10 gigabits (billion) per second. nt's built 90% of such nets. inertia, momentum, the installed base: who would YOU go to if you were having a broadband important net built? that was the first item in mcginn's mea culpa: that he can't yet really deliver in OC-192. and now roth has jumped on qtera, using solitons steada photons, so more bandwidth plus picking up a bunch of geniuses late of siemens and cascade. con: nt's earnings not as "pure" as jdsu's and q's: it's mixed with serving legacies, e.g. qtera revenues will cannibalize sonet revenues. pro again: how much do you pay up for purity? with j and q at about 500x earnings (jeez, sounds like science fiction to a longtime investor!) that purity seems fully discounted? so what's your take on this, SKIP? do you value an nt like ford? 'nother question, thread, do i have it right that all jdsu does is supply the likes of nt, lu, cien, pirelli, alcatel with components? and components that the net builders fabricate themselves, but who need more components than they themselves can make? so they fill in with jdsu components? and that while jdsu has some patents, the vast majority of their components are based on the patents of others? metaphorically, is jdsu a supplier of hammers and nails to a major contractor (nt, lu etc), major contractors who also make their own hammers and nails? if so, can jdsu do well only if lu, nt cien etc. do well? what am i missing here?