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

To: Kevin Rose who wrote (12148)	12/27/2001 8:17:02 AM
From: Al Collard	Respond to of 14638

Globe/Bloomberg say Nortel reveals borrowing conditions Thu 27 Dec 2001 In the News The Globe and Mail reports in its Thursday, Dec. 27, edition that Nortel Networks may have to earn up to $350-million (U.S.) before interest, taxes, depreciation, amortization and other items in the fourth quarter of 2002 as a condition of borrowing up to $1.58-billion (U.S.). A Bloomberg News dispatch to The Globe reports that Nortel can have a maximum loss of $500-million (U.S.) in the first quarter of 2002, $650-million (U.S.) for the first half, and $700-million (U.S.) through nine months. However, the loss for the full year must not exceed $350-million (U.S.). Thus, if Nortel posts the maximum allowable loss over the first three quarters, it must earn $350-million (U.S.) in the final quarter, according to an amended credit agreement filed Tuesday with the United States Securities and Exchange Commission. Nortel said Friday it would have a loss for the fourth quarter of 2001, the fourth consecutive unprofitable period before items. The amendments to Nortel's June, 2001, credit agreement extend the term to Dec. 13, 2002, from June 14, 2002, and reduce the amount available to borrow to $1.575-billion (U.S.) from $2-billion (U.S.).

To: Kevin Rose who wrote (12148)	12/27/2001 1:00:33 PM
From: telecomguy	Read Replies (2) \| Respond to of 14638

The real issue is DEMAND. The million dollar question is what the SUSTAINABLE, NORMAL demand for networking equipment will be in the forseeable future. If this translates to $20 billion + for NT, they will be fine. If this continues to slip down to $10 billion, NT may not make it due to short-term financing issues. IF NT survives in the short-term (next year or so), NT will do fine and their stock price will go back up to $20+ due to their strong position in products in the two hot networking sector (optical, wireless). I think it is highly unlikely NT will be "allowed" to go under due to their significance to the high-tech industry in Canada and due to the depth/breath of their technology/product portfolio. So in that light, the current price is probably a good bet for any investors who do not think that Telcos will go out of business any time soon and that the IP revolution will slow down to a crawl. I have been out of NT for about a year and half now (if my memory serves me correctly) and am evaluating carefully for my re-entry point. Having said all that, i want to see the Telco stocks stabilize (Qwest, Worldcom, BT, Dutche Telecom, France Telecom, C&W, Verizon, Vodafone, etc.etc.) before getting too heavily back into the networking sector. Until the Carriers finances are under control and they see some light at the end of the tunnel, i don't see the CAPEX coming back to the "normal" level (whatever that normal level is.....)