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: Kenneth E. Phillipps who wrote (6663)	8/31/2000 4:06:13 PM
From: t2	Read Replies (1) \| Respond to of 14638

A strange case of window dressing? Maybe NT's weak performance over the last few days even though great press releases were made ----could just be due to an odd case of window dressing by Canadian mutual funds. Normally, weak stocks are sold while good ones are bought when window dressing takes place. HOWEVER, this one is different. My theory is that funds ended up having over 20% of NT in their holdings (due to the BCE spinoff) while Canadian rules had only permitted 10% for any one stock. The regulators waived that rule. However, even though the rule is waived, it makes less sense for a fund to hold over 20% in one stock. Therefore, they could be selling a lot of NT just to reduce its weighting in their funds. I bet it has been going on for a long time. The stock has held up very well due to its strong fundamentals. My conclusion--Tomorrow (September 1) will be the start of the rally in NT stock as the selling finally dries up. BTW--I also think the Canadian index is taking a bit of a breather and when it starts moving, NT will rocket! I am willing to bet that the selling is coming to an end. good luck