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To: Harold S. who wrote (50396)	1/7/2004 2:18:54 PM
From: E.J. Neitz Jr	Respond to of 53068

Harold.....let it ride...the long term picture is very bright. Goldman Sachs has been quite positive on this for months and remains so. IMHO this is not just a trade and dump anymore. Neither is ADCT. Best wishes.

To: Harold S. who wrote (50396)	1/7/2004 6:59:41 PM
From: E.J. Neitz Jr	Respond to of 53068

Goldman Sachs comments this evening on Nortel (NT-NY) Nortel Networks Corporation EPS (FY Dec) 2003E $0.05, 2004E $0.10 Outperform/Neutral (NT) $4.76 Nortel won a multi-year agreement with Verizon to supply "voice over IP" (VOIP) technology. This is a very significant win for both Nortel and the industry. For the industry, it is a clear indication that carriers will shift capex towards new technology and away from old technology faster than investors currently expect. This is positive for Nortel, Juniper, Sonus, and Cisco - the key suppliers of new technology. For Nortel, the contract supports our market share and margin expansion thesis that underpinned our July 2003 upgrade of Nortel shares. Nortel will gain share as major customers shift spending towards new technologies such as VOIP. Additionally, VOIP typically has 50-60% gross margins vs. the industry's typical 40-45% level. We reiterate our Outperform rating on NT shares.

To: Harold S. who wrote (50396)	1/7/2004 7:13:52 PM
From: E.J. Neitz Jr	Read Replies (1) \| Respond to of 53068

Evening Comment from Argus Research on NT--Target price Up. (Harold on the Goldman comments, I will once again add to my position tomorrow am) Nortel Networks (NYSE: NT, $5.63) BUY • BUY-rated Nortel Networks has won the contract to transform Verizon from a circuit-based to packet-based, VoIP architecture. Though no deal terms were specified, the deal potential is enormous, and represents a further validation of Nortel’s packet strategy. • We are maintaining our EPS estimates of $0.06 per diluted share for 2003 and $0.17 per diluted share for 2004. We will likely implement a 2005 forecast soon after Nortel reports its 2003 fourth quarter; our preliminary assumption is that 2005 EPS could rise 50% or more from 2004. • Our long-term EPS growth projection for Nortel remains 15%, and our financial strength ranking is Medium. • We have increased our 12-month target price to $10, from a prior $7, after incorporating our preliminary 2005 EPS and cash flow forecasts into the mix. Altogether, our revised blended valuation model now supports a 12-month target in the NT shares in the $10-$12 range.