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To: GST who wrote (111146)	10/25/2000 2:37:17 AM
From: KeepItSimple	Read Replies (1) \| Respond to of 164684

>but I think JDSU and NT have become a huge chunk of the TSE -- yes? Around 30%, actually. What is great for the index on the way up, is gonna be murder on the way down.

To: GST who wrote (111146)	10/25/2000 8:03:14 AM
From: re3	Respond to of 164684

from the natinal post Nortel plunge may soak TSE Results spark selloff: Millions of Canadians have stake in high-tech firm William Hanley National Post Canadians will likely find themselves tens of billions of dollars poorer today after Nortel Networks Corp. announced disappointing shareholders results yesterday and the company's stock plunged in after-hours trading. Nortel, which accounts for 30% of the domestic stock market and is owned directly and indirectly by millions of Canadians, fell as much as US$14.56 to US$48.75 (about Cdn$73.78) in U.S. trading, wiping about US$43.7-billion or $66-billion in Canadian terms off the market value of the shares. The stock closed official trading in Toronto at $96.10, down $5.90, valuing the company at $296-billion. If Nortel stock were to open this morning down $20 -- a loss similar to the one it suffered in after-hours trading -- that would wipe 600 points, or about 6%, off the Toronto Stock Exchange 300 composite index. Although more than half of Nortel's shares are owned by foreign investors, mostly Americans, the fall in its share price and in the TSE 300 index makes a significant dent in the paper wealth of Canadians Such is Nortel's impact on the market and the economy that the Canadian dollar fell in sympathy in late trading, dropping to US65.84 from the official close yesterday of US66.19¢. Some other Canadian technology stocks also fell in after-hours trading and the damage could spread to the telecommunications and technology sectors of the New York Stock Exchange and Nasdaq stock market. Although Brampton, Ont.-based Nortel beat analysts' estimates for third-quarter profits, after-hours traders seized on Nortel's weaker-than-expected revenues as an excuse to dump the shares. Nortel's sales rose 42% to US$7.31-billion, compared with an estimate of US$7.59-billion by First Call/Thomson Financial Inc. There was also a surprise revelation that some of the company's long-time customers had been stockpiling Nortel equipment, thus reducing their need to buy more. Some analysts feared Nortel was "priced for perfection," meaning the stock's value was based on the expectation of outstanding results. When the results were not perfect, one trader said later, "the stock was taken out and shot." But some analysts also said the Nortel selloff could have been an overreaction and there is hope that the price might stabilize this morning and perhaps rise when trading becomes wider. After-hours markets typically are thinly traded. The wider fear on Bay Street is that the revenue shortfall might be reflecting a general slowdown in the blistering pace of telecommunications and Internet equipment spending. Nortel makes much of the infrastructure of the Internet. The company said revenue fell short of forecasts as installations of fibre-optic equipment were limited by personnel shortages. "I don't think there's much of a chance at all that growth can remain at current levels," Paul Sagawa, an analyst with Sanford, Bernstein & Co. in New York, said of Nortel, which has been growing around 40% a year. Nortel fuelled much of the TSE's 23% rise this year, a climb that made it the top-performing major market in the world. This year, Nortel had risen 32% to yesterday's official close. Even before yesterday, the stock was more than 20% below the record high of $124.50 recorded in July. Every dollar the stock moves translates into a fall or rise of more than $3-billion in market value. "Obviously, the Canadian dollar is a bit weaker on expectations the TSE could open lower [today]," said Mike Wissell, managing director of foreign exchange sales at TD Securities in Toronto. Brian Acker, president of Toronto-based money manager Wicker Finley Inc., said his company sold all its Nortel shares two weeks ago. "I'm going to have a beer tonight." NORTEL NUMBERS: - Nortel makes up makes up 30% of the Toronto Stock Exchange 300 Composite Index. - At close of trading on TSE, Nortel was the country's largest company by market value at $296-billion. - After-hours-trading on NYSE slashed value of shares by 22%, or $66-billion. - If this fall is repeated today, Nortel's decline alone could translated into a 6% loss on the TSE 300

To: GST who wrote (111146)	10/25/2000 11:33:54 AM
From: H James Morris	Read Replies (1) \| Respond to of 164684

Gst, I confused. Everyone other than possible new economy investors knows we're in a global slowing economy. Right? So why is everyone shocked when a Nortel tells us sales are slowing down? In any slowing economy... sales slow down. Its as simple as that!! Btw Cisco might be next. >Nortel, which warned of slowing optical sales for the year after the closing bell yesterday, was lately down 26.6%. It was the most actively traded stock on the New York Stock Exchange