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

To: rrufff who wrote (5256)	4/4/2000 10:12:00 PM
From: Kenneth E. Phillipps	Respond to of 14638

rrufff, Nortel has been contracting out manufacturing activity and selling manufacturing assets for some time. This is not, as I understand it, manufacturing of top of the line products but the older more routine manufacturing.

To: rrufff who wrote (5256)	4/4/2000 10:26:00 PM
From: jack bittner	Read Replies (1) \| Respond to of 14638

thanks, rruff, for that very informative post. seems to me another example of john roth's brilliance. he has sold off some manufacturing areas, the kind of daily grind that telecom manufacturers like lucent and nortel began with (as arms of their respective telecom behemoths) so nortel can concentrate on research and development, sales and marketing. the firms that bring this to its ultimate are the fabless chip designers who manufacture nothing. if successful, they wind up with 80%+ profit margins; and they sell for huge multiples. he's swapping solecton for solitons. steada making telephone sets, he's selling the devices that send data a trillion bits a second for 2400 miles without regeneration - yet he'll still get a piece of the action on telephone sets by marking up solecton's products.

To: rrufff who wrote (5256)	4/4/2000 10:32:00 PM
From: Bosco	Respond to of 14638

Hi rrufff - no, I thought it was non news for NT. Evidently, some news source thought it was a great deal [Well, maybe it is a good deal for SLR] When NT merged with BAY, NT mgt has begun a programme to outsource her manufacturing. In fact, if memory serves, there was a lively discussion about it here in this very humble thread <g>. Incidentally, during that time, NT has also begun redeploying her resources, from which we are benefiting tremendously from that effort now best, Bosco