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

To: gbh who wrote (7818)	10/27/2000 4:17:08 PM
From: A.L. Reagan	Read Replies (1) \| Respond to of 14638

Somebody sure jammed a bunch of shares into the sell column at the close. Nasty.

To: gbh who wrote (7818)	10/27/2000 6:45:05 PM
From: peggylynn	Respond to of 14638

when companies like WCG and GBLX and LVLT say they are reducing cap-ex, it can only mean one thing. These companies have never been big purchasers of legacy voice-only gear. Gary - Not all next generation carriers are well managed and those that aren't are running out of time to get their act together. Carrier incompetence does not decrease customer bandwidth demand, however. There are carriers who know how to meet that demand and make a good profit. NT is one of the systems vendors who is acutely aware of the economic challenges the carriers face. Roth has been carrying on about the need for more efficient gear for years, not that many people in the financial press have paid much attention to him. Also, don't misunderstand me. I'm saying "reducing capex". Not eliminating capex. So growth rates down the food chain may simply slow. Not disappear. Problem is, the stocks are priced for accelerating growth, not decelerating growth. Even NT at its current price, imo. Until I see optical broken out of projected carrier capex I will continue to believe that the current fear mongering is little more than the result of hedge funds going short telecommunications and hand feeding the lazy financial press. The high demand, high profit end of the telecommunications industry is driven by businesses anxious to fatten their bottom lines with productivity gains realized by employing advanced data networking technology. Optical technology is the only way that demand can be met competitively and profitably. I think there are plenty of legitimate concerns about the optical and telecommunications industries. I just don't see that demand for optical gear happens to be one of them. - peggylynn