Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Bosco who wrote (4848)	2/20/2000 12:18:00 PM
From: ddcox1	Read Replies (3) \| Respond to of 14638

Good Morning Bosco and Mindmeld! I find your reasoning for Nortel's growth very compelling. Its even more interesting when you bring a company like Cisco into the picture. I do still believe that both are grossly overvalued. 1) Im very worried when people say that traditional methods of valuation do not apply anymore. The only reason to buy a stock is on the expectation of future earnings. 2) One has to remember that both Cisco and Nortel were small cap stocks 10 years ago. Outstanding small caps have huge growth rates. Both Nortel and Cisco's will be incumbered by their shear size. Matured companies simply can't expand that fast. Do you really forsee a Cisco with a 50 trillion market cap in 10 years? 3) Nortel has risen 4-fold in the last year, way to fast and BCE knows it. Thats why there so eager to dump their position in Nortel. When their stock floods the market, their will be extreme pressure on the stock. 4) The prospect of inflation and rising interest rates is bad news for the market, exspecially for high P/E tech stocks. Mr. Greenspan mentioned in his testimony last week he has no intention of letting up on interest rate increases. Nortel in my eyes is still a $40 (U.S) stock.