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

To: Dave Gore who wrote (7686)	10/26/2000 12:01:24 AM
From: gc	Read Replies (2) \| Respond to of 14638

"Management said that the main reason growth was not quite as strong is because they could not get enough installers to keep up." Do you really believe it?

To: Dave Gore who wrote (7686)	10/26/2000 10:45:40 AM
From: Bob Kim	Read Replies (2) \| Respond to of 14638

Dave, Re: It is the analysts and the market who decide what proper valuation is, not the management. A lot of analysts just follow the market. ML's analyst set a $32.50 12 month price target a year ago at this time. Unfortunately, until the day before yesterday, his price target was $110, and yesterday he lowered it to $80. His 2000E EPS went from $0.62 to $0.72 to $0.74 at each price target level. So, at peak he was willing to award a 238% higher price target with only a corresponding 16% increase in his estimate.