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To: pater tenebrarum who wrote (4865)	7/20/2000 7:49:31 PM
From: re3	Read Replies (2) \| Respond to of 436258

<<<<i'd like to comment that in view of this, paying a 190 p/e and 25 times sales for a company with 7 billion shares outstanding is eminently sensible....lol... heck, tomorrow is exp. day ! as louie R would say, give us three names <vbg> i hear nortel is well over 30 % of our canuck index !

To: pater tenebrarum who wrote (4865)	7/20/2000 7:55:39 PM
From: patron_anejo_por_favor	Read Replies (2) \| Respond to of 436258

<<I suppose CSCO, Northern Telecom and the other suppliers will figure out how to call the inevitable write-downs "one-time charges" on two-year old equipment that comes back off defaulted seven-year leases or loans, but the reality is that a significant portion of what was previously booked as sales will not be paid. Keep this in mind when you get tempted to buy these exponential growth manufacturers.>> This is the most cogent argument against further price appreciation in the Telco equipment stocks that there is. As a group, they are NOT worth the PE's they are being awarded, because their future cash flow has been wildly exaggerated and certainly won't be consistent. When the recognition of this comes it will get very ugly very quickly.....

To: pater tenebrarum who wrote (4865)	7/21/2000 11:36:06 AM
From: Earlie	Read Replies (1) \| Respond to of 436258

Heinz: Good comments: I have been telling clients and friends alike that Nortel, a company that I actually used to admire (but wouldn't buy at the current insane prices), has become a virtual operational company as opposed to being an equipment supply company, primarily as a result of its move into the financing business. Not that the company has any choice, as the equipment business has become brutally competitive. Effectively, it is the Nortels of the world that have assumed the speculative risk in the operational side of the telecom game. The financing arrangements come as close as dammit to being a "pay-as-the-equipment-earns" game. And given the locales for plenty of the latest deals (as in Latin America), banking on payment is pure gambling, ........... or perhaps ensuring a decent follow-on market for one's insider stock sales over the next quarter. (g) Best, Earlie