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Technology Stocks : MITEL (MLT) -- Ignore unavailable to you. Want to Upgrade?

To: technbio who wrote (1509)	8/10/2000 8:03:27 AM
From: Ally	Read Replies (1) \| Respond to of 1730

Re: National Post article.... I read it too. Question: Why do analysts want to split the company? CEO Mandy said in the article that research firms are forecasting IP based telephone systems to see sales growth of 100% a year in the next few years. He said that Mitel's Ipera 2000 and two other models of IP phones will result in tremendous growth in the BCS business..... "Why should I throw away that kind of business before it even starts?" Analysts... who are these animals who think they are qualified to make strategic operational recommendations? These are the same species who in the past had recommended Mitel dump the semi-conductor business when it was not doing well. Imagine if the company had followed their recommendation! I'm with the CEO that the company should not split into two. Having two sectors, there is less cyclicity to the bottom line earnings. They tend to compensate for each other's slowdown ...just like the semis are now maintaining earnings growth even though the BCS sector is undergoing Y2K blues. The sectors have tremendous growth prospects. Imagine when they are both firing on all cylinders... watch how high the stock price will go. Analysts are an interesting breed... posing to recommend strategic operational recommendations when many are neophyte post graduate brats who have no, or little experience, running companies themselves. Go figure!