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

To: Kenneth E. Phillipps who wrote (12850)	5/30/2002 4:52:13 PM
From: Robert T. Quasius	Read Replies (2) \| Respond to of 14638

NT can and will survive. It is just a matter of time before telecom capital spending rebounds. Bandwidth demand, wireless upgrades, etc. continues to grow and eventually will force providers (at least the survivors) to invest in infrastructure. My medium term target is $8 - $10, long term $25 - $30. The street is acting as if people are going to stop using the internet or their cell phones. The truth is that we are in a cyclical downturn, deepened by overinvestment during the big bubble and a general economic recession.

To: Kenneth E. Phillipps who wrote (12850)	5/31/2002 12:35:11 AM
From: sylvester80	Respond to of 14638

Lucent (without Agere factored in - which will be the case Monday) is trading at 0.7x sales and that's with sequential growth. It will be much more likely for Lucent to see a 2-3x P/S multiple with positive growth than Nortel with sequential decline. Lucent at 0.7x sales is much more of a value play than Nortel as it is ahead of Nortel in all areas. From cash, to book value, to ratio, to margins and earnings improvement and to sales growth. JMHO.

To: Kenneth E. Phillipps who wrote (12850)	5/31/2002 12:41:34 AM
From: sylvester80	Respond to of 14638

If Nortel continues to give products away or 100% finance deals in order to get business (meaning negative to zero margins), then the company is going bankrupt unless someone makes a buyout offer. However I consider even that a long shot because of Nortel's condition at the moment. They should have sold a lot of their losing operations long ago. They are very late in the game with a market that wants nothing to do with buying losing operations. There is no question that Lucent's new management totally outplayed Nortel's during the last 2 years in terms of ejecting at good prices losing operations. Nortel is still carrying a lot of losing operations they should have ejected long ago. JMHO.