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

To: Serge Collins who wrote (1125)	9/30/1998 5:19:00 PM
From: Anthony Wong	Respond to of 14638

Excerpts from a Reuters story from Canada with some positive analyst comments: "The stock is now heading back toward pricing levels we haven't seen since people were afraid it was going bankrupt in 1993," said one analyst, who declined to be identified. "On a price to sales basis, for example, we're starting to get into hailing distance of where Nortel was trading at that time." Brokerage Warburg Dillon Read cut its rating on Nortel stock to a hold from a buy on Wednesday, while BT. Alex Brown started the stock at market perform. Analyst Rob MacLellan at Kearns Capital said his brokerage maintained a hold on Nortel but cut its target price to a range of US$36-US$40 from US$52. Kearns also lowered its earnings estimates for 1998 to US$1.50 a share under U.S. generally accepted accounting practices (GAAP) from US$1.64. Longer term, analysts still feel Nortel's future is bright because it has a firm foothold in the fast-paced telecommunications and data communications markets. SoundView Financial Group analyst Truc Do said he was overall still optimistic about Nortel's outlook despite being "disappointed" with "the way that management communicated bad news, not addressing it directly and in detail." "We do see that Nortel has an interesting position in the broadband and data markets, where we expect them to do well and gain market share there," Do added. Upon evaluation, the stock "is quite cheap," Do said. "Long-term it would be a good performer." In Canada, Nortel shares are now at less than half of their 52-week high of C$100.25. The other analyst agreed that Nortel, which had started losing stock value after announcing it would buy Bay Networks for $9 billion in June, could have handled things differently on Tuesday, but that it would prevail. "I think because the market is so short-term-oriented, they're losing sight of the longer-term perspective on this," added the analyst, who attended Tuesday's meeting. "They had a bullish story to tell long term." "Nortel, I think, just has to reassure people about Bay and reassure people that this is an aberrant revenue growth pattern," he added. Nortel stock continues to fall canoe.ca