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

To: Bill who wrote (6807)	9/13/2000 12:51:28 PM
From: SJS	Read Replies (3) \| Respond to of 14638

Just as I write that I agree with you, NT is being featured on CNBC and this report is the reviewers choice of material to work from. Steve PS: This just popped up, too: +++++++++ Nortel stock rebounds on bullish demand signals (In U.S. dollars unless noted.) By Susan Taylor OTTAWA, Sept 13 (Reuters) - Shares in Nortel Networks Corp. <NT.N> <NT.TO>, the world's No. 2 telecoms network equipment supplier, staged a recovery on Wednesday following bullish statements on market demand from the company's chief executive and analysts. Shares in Nortel, which have dropped 20 percent this month, rebounded about 4 percent on Wednesday. The stock gained C$3.80 to C$98.30 on the Toronto Stock Exchange at midday and $2-7/16 to $66-3/16 on the New York Stock Exchange. Market jitters that major telecoms customers will reduce equipment spending appear to be easing, amid positive statements from Nortel chief executive John Roth and analysts. Roth said on Tuesday the company is "sold out" of its fiber-optic gear and that sales of $12 billion this year are "possible". At the upper end, revenues of $13 billion are "probably not possible", Nortel spokesman David Chamberlin told Reuters. Roth, who was speaking to reporters at a corporate event in California on Tuesday, had said previously he expects the company to sell more than $10 billion in fiber-optic products this year, which many analysts interpret to mean $12 billion. The chief executive also said that Nortel is returning to such customers as Global Crossing Ltd. <GBLX.O>, an undersea fiber-optic network builder, to fill orders that it was unable to supply last year, Chamberlin said. Roth added on Tuesday that telecoms budget jitters are seasonal and that phone carriers and service providers must continue investing in network equipment to fuel revenue growth, Chamberlin said. The positive outlook has been echoed by analysts. "Nortel, like much of the communications equipment sector, has seen a recent sharp correction on the back of concerns about slowing capital expenditures at the carriers," wrote Merrill Lynch analyst Tom Astle in a research report on Wednesday. "We believe this may be overdone." Astle said Nortel's high-growth engines, in particular its fiber-optic business, can't keep pace with demand. "Nortel is the most sought-after supplier of optical networks and has thus kept its exposure to the top tier of carriers," added Astle, who reiterated his buy rating on the stock. "Even if a slowdown in spending were to occur, Nortel may be one of the last to see any impact." The uptick in the stock follows Roth's announcement on Tuesday of a $20 million expansion plan to create a California base to replace about 15 sites the company now occupies around Silicon Valley. Nortel said construction of the base in Santa Clara, which will boost employment in Silicon Valley to 3,800 from 1,400, will begin next week. The project will add two new buildings, which are scheduled for completion in late 2001. "We're spread out all over right now," said Chamberlin. "It's basically consolidating all the buildings that we've acquired through acquisition and bringing them down into five buildings." The project will bring together Nortel employees from such Silicon Valley acquisitions as Bay Networks, Xros, Clarify, Shasta Networks, Promatory, and Periphonics. The five buildings in the campus will be linked to one large group of computer servers by a high-speed fiber-optic network. Such a network setup will save Nortel $12 million in annual operation costs, Chamberlin said. ($1=$1.48 Canadian)