Bruce Campbell (1)Nortel ASNTEL.TODON'T BUYMar 24, 2005
They are getting closer to being back on stream with all their financials. Will probably make some money going forward. There's probably a trade here in that they are going to finish up all the back and start to report smaller earnings going forward. Would like to see $0.20 in earnings before having a BUY.
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.