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

To: Dave Gore who wrote (7722)	10/26/2000 12:02:17 PM
From: Ian@SI	Read Replies (1) \| Respond to of 14638

I just don't see much downside from here on NT unless management guides downward again in a few weeks Given that we're one month into the Q; and that NT's lead time tends to take up the rest of the Q excluding the Xmas period, I would suspect the likelihood of any downward revision is real close to zero. The street doesn't believe that - my guess is that they think there's still an inventory buildup at NT's customers. If that's the case, then we may not see much recovery until NT issues its next report; or gives some strong upward guidance.

To: Dave Gore who wrote (7722)	10/26/2000 2:07:51 PM
From: Master (Hijacked)	Respond to of 14638

It wasn't too long ago, during the dot.com mania, that some of the stiff-necks on Wall Street were telling us that the volatility and exaggerated stock valuations would remain unless we returned to evaluating companies based on their fundamentals. Nortel had a very respectable P/E ratio for a growth stock. Its revenues are growing at a remarkable rate for a company that sells in the billions of dollars. Yet despite the apparent solid fundamentals, the stock tumbles 30 % in two days because revenues were 2.7% off the top mark and is now trading at more than 60% off the year high. The only thing I can conclude from all of this is that the stiff-necks over on Wall Street really don't know what they are talking about. Just like it was with the dot.coms, it is emotions that drives stocks. Anyone telling you that fundamentals is the driving force is simply feeding you a lot of manure. Vince