Martin Hubbes, CFANortel ASNTEL.TOSELLMar 21, 2005
Stock droppped because the results in the latest quarterly returns were not as strong as had been anticipated. Fully valued. The stock trades as much on news as it does on valuation. Can be extremely volatile.
If you own the stock, you are playing that there is some value in the assets they own. The company is not a going concern. Have a huge deficit hole in their pension plan. Individual parts of the company may be better being sold off.
Has about $4 per share in cash. They are thinking of selling an asset that would raise about another $1 billion, which would add another $2 per share in cash. However, the overall quality of the balance sheet is as bad as he has ever seen it. Speculative.