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

To: Bosco who wrote (8786)	11/20/2000 6:32:03 PM
From: zbyslaw owczarczyk	Read Replies (1) \| Respond to of 14638

Positive comments from SG Cowen and ML: cnnfn.cnn.com SG Cowen disagrees with downgrade SG Cowen analyst Christin Armacost disagreed with Morgan Stanely Dean Witter's downgrade of Redback and Juniper. While telecommunications companies may reduce their capital spending on switches for traditional voice communications, spending on equipment for the transmission of data is likely to remain strong, she said. Unlike Nortel and Lucent, Juniper and Redback have no exposure to the market for voice equipment, she said. "I still think carrier spending will be concentrated on the data side rather than legacy voice," Armacost said. "Juniper and Redback maintain some the highest growth opportunities out there and the potential to significantly exceed earnings expectations." Telephone companies have spent billions of dollars to upgrade their networks to handle the exploding volume of data traffic created by the Internet and corporate intranets. As a group, the local and long distance telephone companies Armacost tracks experienced a 32 percent increase in revenue from data traffic in the third quarter versus the same period last year. Capital spending by U.S. telephone companies rose 38 percent this year to $110 billion from $79.5 billion, according to the telecommunications research firm RHK in South San Francisco. RHK forecasts that U.S. phone carriers will spend $133 billion next year, which would be a 21 percent increase over this year. Spending on traditional voice switching equipment is expected to remain flat at $10 billion. Merrill Lynch analyst Michael Ching on Monday made positive comments about phone companies' expected spending on capital equipment, saying that investors may be placing too much emphasis on inventory levels at the networking equipment makers. "Our service provider team continues to forecast a modest decline in capital spending in 2001," Ching said in a research note. "However, recent news suggests that spending ultimately may come in ahead of initial forecasts, as it usually does. Recently, both Sprint and Global Crossing made positive comments on their calendar year 2001 capex plans." "We continue to believe that aggregate service provider spending in the U.S. will actually grow about 10 percent in 2001, and that our companies will report an average revenue increase of 25 percent next year," Ching added. "Despite this, the average price-earnings multiple of our group is now approaching levels last seen in 1997-98."

To: Bosco who wrote (8786)	11/21/2000 12:59:17 AM
From: Thai Chung	Respond to of 14638

Monday November 20, 7:31 pm Eastern Time Nortel reaffirms financial guidance for 2000, 2001 (UPDATE: adds details in paragraphs 6-10) NEW YORK, Nov 20 (Reuters) - Communications equipment maker Nortel Networks Corp., whose stock has been hit by fears of lost contracts and layoffs, on Monday reaffirmed its financial guidance through 2001, saying it continues to see strong growth in sales of optical, wireless and Internet equipment. Nortel (NYSE:NT - news) (Toronto:NT.TO - news), which will host an investor conference in Boston on Tuesday, said it expects its 2000 revenues and earnings from operations to show growth in the low 40-percent range. It expects its optical Internet revenues to grow more than 125 percent in 2000 to more than $10 billion. For the fourth quarter of 2000, Nortel expects its revenues to be $8.5 billion to $8.8 billion, with earnings from operations of 26 cents a share. That earnings outlook is consistent with its previous guidance and is in line with Wall Street expectations, according to research firm First Call/Thomson Financial. For the full year 2001, Nortel expects to outpace the overall market growth of 20 percent. It expects its revenues and earnings per share from operations to grow by 30 percent to 35 percent. In the first quarter of 2001, it expects revenues to be $8.1 billion to $8.3 billion, and earnings from operations to be 16 cents share. The earnings guidance matches Wall Street forecasts, First Call said. The financial guidance was released after the stock market closed. Nortel's stock closed Monday at $35-1/4, up $1-3/16, on the New York Stock Exchange. The stock has lost about 30 percent this year, weakness in the past month erasing modest gains made earlier this year. Investors slammed shares of Nortel after it posted weak fiber-optic equipment sales in the third quarter. Its shares were further pressured last week amid rumors that Nortel lost sales at Qwest Communications International Inc. (NYSE:Q - news) to equipment rival Ciena Corp. (NasdaqNM:CIEN - news), analysts said. Nortel spokesman David Chamberlin on Friday denied that rumor and said Nortel has ``not lost any significant contracts to Ciena or anyone else.'' Nortel said on Monday it continues to see ``strong demand'' for its long-distance optical Internet products, while it also moves into new markets such as making equipment for high-speed optical Internet networks within cities and wireless Internet networks. The Brampton, Ontario-based company said its growth also will be fueled by its ongoing efforts to focus on fast-growing markets and to streamline operations.