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

To: KYA27 who wrote (10435)	3/28/2001 9:46:09 AM
From: ntrules	Respond to of 14638

NT should bounce now that KYA is back!! Roth is giving some reassurance in the reuters article biz.yahoo.com May be they are trying to take a blood bath this quarter to make the next quarter look good... May be it is indeed true that the equipment market is stabilizing.

To: KYA27 who wrote (10435)	3/28/2001 10:17:32 AM
From: SJS	Read Replies (1) \| Respond to of 14638

Merrill's probably right. Going to 10...or under: _________ Nortel (NT) On Feb 15, Nortel announced that 1Q revs of $8.1bn were unrealistic and guided towards $6.3bn and a loss per share of 4c (from 15c). Last night, the company pulled back from any full year guidance and indicated that 1Q would look more like a loss of 10-12c off revenues of $6.1-$6.2bn. Management did not hold a conference call, given the lack of visibility but weren't shy about saying what was wrong: deferrals, cap ex reductions, pricing pressures and "early signs of the impact outside the US". Our analyst believes that the original worst case estimate of 45 cents for the full year, which was recently revised down from 67 cents, will fall to roughly 40 cents for 2001. The worst case valuation was originally 45 cents x25 multiple = $11.25. Ouch. New earnings estimate suggests $10.00 - NT stock indicated at $15 in the aftermarket. A reminder as to the companies affected include: JDSU 15-20% EXFO 5% GLW 10% AVNX +10% BKHM 51% AMCC 20% TXCC 8% MMCN 13% TQNT 17% PMCS a little less than 10% MMCN 13% EMS 60% SCI 11% SANM a little less than 10% XLNX 5% ALTR 5% CY 5%

To: KYA27 who wrote (10435)	3/28/2001 10:57:36 AM
From: Alex Chilton	Read Replies (1) \| Respond to of 14638

"anyone think NT waited to warn again and timed it with the AGR spinoff.Maybe they wanted to SCREW lu" I do, why not? This is no time to hold back bad news; get all the garbage out while the market's going down, reduce numbers so next year's q2q's provide a bigger bounce. NT's microelectronics group will be spun as well, but not giving up NT control, so why not try and hurt LU as much as possible, while reaffirming the NT model (of not spinning to shareholders). Hey, the good news about the drop is more shares on Friday for the dividend. Probably more this quarter than all of last year. Alex.