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

To: Kenneth E. Phillipps who wrote (9710)	2/15/2001 5:59:29 PM
From: A.L. Reagan	Respond to of 14638

Payment defaults in U.S. accrual GAAP should be charged against SG&A not the top line (unless the sales were so tenuous at the beginning that they were accounted for on the installment basis.) Which, maybe some of the CLEC deals were.

To: Kenneth E. Phillipps who wrote (9710)	2/15/2001 6:42:12 PM
From: ntrules	Read Replies (1) \| Respond to of 14638

A few explanations.. Could it possibly be that Nortel does not really have a clue as to what the real industry growth will be in this area and have been predicting always to do about 5% better than the industry? Could it be possible that Nortel really wanted a reason to lay-off more employees than originally planned and currently there is a lot of displeasure among the employees on the recent cut-backs when the business hasn't really suffered? This could also mean that by keeping pressure on the stock price for the next quarter or two, they ruin the chances that the departing employees will exercise their options and thereby cause dilution and further erosion in the earnings per share?