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

To: Sal Pugliese who wrote (1279)	10/18/1998 6:01:00 PM
From: Haim R. Branisteanu	Read Replies (1) \| Respond to of 14638

A subsidiary of Nortel, with around $450 million in revenue, Telrad with 2400 employees is laying of 1000 workers. globes.co.il Around $200 million of that was subcontracting work for Nortel US. The remaining in switching equipment was sold mostly to Third World countries. They also sell PBX's in the US around $80 million, I think. I do not think that the telecom manufacturers in general enjoy the sales growth many belive.(16% to 20%) around 6% to 11% would be more realistic. How I know ?? from working closely with several telecom manufacturers. Therefore NT or LU future is not as rosy as many belive. Still LU and NT are great companies and they will substantial business but at much much lower margins and low double digit or high single digit sale growth. NT had it's own correction, I anticipate LU to return to the mean P/E of most telecom companies of around 22 to 26 and not the present 38 P/E on "adjusted" or massaged earnings. BWDIK Haim