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

To: Bosco who wrote (9147)	12/29/2000 2:17:07 PM
From: telecomguy	Read Replies (1) \| Respond to of 14638

Bosco, without doing a lot of due diligence, it strikes me that NT would not have HAD to do lot of risky or marginal vendor financing. We have to remember that for bulk of 1999 and 2000, NT could NOT even handle or delive the business they were handed (due to lack of capacity, & implementation resources). So it doesn't make a lot of sense that NT would have accepted risky marginal deals when they had the hot product that EVERYONE wanted. LU on the other hand was in a desperate predicament (as we are now finding out in the press) where their sales staff were in a position of having to "force" sales through due to their inferior product relative to NT. LU mgmt looked blindly at all the risky vendor financings because they needed to make the numbers to keep their ship floating. NT was and is NOT in this situation and as many analysts and NT executives have repeated, they do not need to "buy" deals in order to generate the revenue. Besides, I could be wrong on this but Roth strikes me as a relatively conservative manager when it comes to financial aspect of the business (probably due to his engineering background) and would not have allowed or knowingly approved NT sales staff from giving out large vendor financing to shaky Carriers. That's my take at a macro level....of course if the economy really craps out and even the top tier Carriers have problems getting funding, then even NT will be exposed (which is the current situation). I don't believe we will go that deep into the funk, economy wise...there are just too many good factors (mostly driven by technology, globalization, and productivity gains) that should put a break on any type of sustained downturn. We have to remember that short of some massive external shocks like Oil Crisis, most recession/depressions are typically man-made and completely avoidable if good bankers/politicians are in control.