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

To: Bosco who wrote (2260)	3/18/1999 11:11:00 PM
From: Paul Fine	Read Replies (3) \| Respond to of 14638

I posted this in Yahoo thread, and relates to a Lehman Bros analyst report on NT from just last week: "Before making predictions, it would behoove you all to read the Lehman Bros report that was linked in an earlier post this evening( lehman.com you, by the way. It is based on an interview they had with Roth and the new CFO just a week ago. This is my summary of the report: 1. Lehman's analyst(Tim Luke) maintains an "outperform" rating 2. Luke maintains current qtr est of $.33/share(equal to Zack consensus) and current 1999 est. 3. HOWEVER, does not see much if any upside to est due to confirmation by NT that PBX and Bay Enterprise units(which comprise about 33% of total NT revs) are coming in below plan this qtr, which will offset strength in other areas that might have pushed NT above consensus. 4. Concerns over corporate issues about Y2k may reduce opportunity for overachieving in the second half of 1999. 5. New deal with AT&T, even if the switches past the tests, will not impact revs until 2000. 6. Warning by 3Com was real, and is impacting Bay unit. Particularly tough pricing competition in lowend LAN switches. 7. NT Mgmt did say that the guidance they gave on profit was based on more conservative margin est than internal est, which may leave room for a few extra pennies this qtr. 8. All of this from a firm that does business with NT, has a member on the Board of Directors of NT and an analyst who discloses he holds a position in NT(as reported in the official document). Doesn't sound like someone trying to drive down NT price. All in all, I didn't see anything that told me NT Mgmt is expecting any big upside surprise. That also tells me there is nothing to suggest a motion to split the stock at the next annual meeting in late April. Read the report and draw your own conclusions, but ignore the report at your own peril." Paul