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

To: KYA27 who wrote (2407)	4/11/1999 10:32:00 AM
From: Stocker	Respond to of 14638

Already answered it for you. See my last post. You know how to do that don't you? Maybe your broker can help with that to if it's too tough. Alright!!! So as not to confuse you more..... NT HAS BEEN TAKING CHARGES AS A RESULT OF THE BAY ACQUISITION AND ALSO FOR RESTURCTURING/LAYOFFS. THESE ARE CONSIDERED EXTRAORDINARY ITEMS AND ARE "NOT" FACTORED IN WHEN ANALYSING A COMPANY!!! Operating margins, sales, overhead etc. are all much more important as these are not one time, rather reoccurring items. Re I would like to know the answer and I'm sure all who are think of investing in NUT Networks would be interested as well. We already know the reason, it's just you who doesn't get it! Like I said before, you can expect LU to do much the same thing soon regarding its Ascend takeover. My apologies to everyone else here, but this is rediculous.

To: KYA27 who wrote (2407)	4/11/1999 11:49:00 AM
From: michael a. rowe	Respond to of 14638

<<<Answer the question. NT is listed as "NE" for trailing 12mos. P/E Ratio >>> Why not ask your "broker" to explain this stuff to ya, cause your repeated posting of this is only making you look more and more stupid. I dont claim to know it all but your obviously a real greenhorn, this is basic stuff.....all can take note and laugh at what this guy posts....he doesnt have a clue. mike

To: KYA27 who wrote (2407)	4/11/1999 12:42:00 PM
From: Stock Farmer	Read Replies (1) \| Respond to of 14638

Presuming you actually do want answers and aren't intending to make some obtuse comment (or demonstrate shallow judgement), you could look in the annual report or the filings on SEDAR. Nortel reported a loss in FY '98 as a consequence of charges taken in conjunction with the purchase of Bay. They also took a charge of 447 M$ against restructuring, offset against a one time gain of 441 M$. Factoring these "one time" charges out, one gets a picture of the stable element of the co. PE is just one of the measures useful in comparing companies. However, it is a good idea to dig beneath the factors contributing to "E" and apply some judgement before investing in (or slandering) a company. This isn't just accounting fiction, or more precisely, it is accounting fiction that needs to be pieced together carefully. For example, inclusive of all one time gains and charges, NT posted a $M 64 EBIT and yet $M (601) provision for taxes and $M 32 Dividends on preferred shares - resulting in annual earnings of $M (569). Another way of looking at this is that the governments also view the intangibles as irrelevant when computing taxes (and they aren't generous about excluding things that reduce taxes). Finally, the numbers to answer your question. Earnings applicable to common shares (569) Add back: Aquisition related amortization Purchased in-process R&D 1,241 Acquired technology 228 Bay Networks Goodwill 161 Subtract One Time Gains (441) Add One Time Charges 447 Net Tax Impact (2) Suppl. Meas. of Net Earnings 1,065 EPS (Supp) 1.86 vs 1.54 (FY'97)

To: KYA27 who wrote (2407)	4/12/1999 2:20:00 PM
From: G. Richmond	Respond to of 14638

KYA27, have you read this? The New York Times April 11, 1999 Page 1, Column 1 ...........Lately, Lucent Technologies, a leader in communications systems, has caught Mr. Olstein's eye. It closed on Friday at $63.625, or 54 times 1999 estimates,............. .......''Lucent is a great company,'' Mr. Olstein said, but not the growth company investors think it is. Even if that report astounds, Mr. Olstein points to other areas that make him fret about Lucent's growth. For instance, during the past two years, Lucent has written off $2.5 billion of research and development ............Charging such expenses to earnings makes future income look better than that in earlier quarters............. ......... Arthur Levitt, chairman of the Securities and Exchange Commission, has worried that companies may use such write-offs to manage earnings............ .........As for Lucent's $480 million revenue increase in the latest quarter, Mr. Olstein said that about $200 million came from reconsolidating its folded joint venture with Philips Electronics. In his view, revenue from continuing operations showed only 3 percent growth in the quarter. Meanwhile, accounts receivable and inventories were up 43 percent and 46 percent, respectively.......... ............Even then, Mr. Olstein reckons that 19 cents of the 20-cent increase came from three items: another accounting change, a lower tax rate and a smaller allowance for accounts unlikely to be paid.......... ........''Eliminate all this stuff, and maybe you're not paying 54 times earnings. You're paying a lot more,'' Mr. Olstein said. ''But nobody cares about risk until they lose money.''