Larry Berman CFA, CMT, CTANortel ASNTEL.TOWEAK BUYMay 11, 2005
Has been a great trading stock for investors. Doesn't know enough to make a solid call yet. Consider putting a stop below the $2.85 low that was hit a couple of weeks ago and take a long position, it's worthwhile. Could have a rally up to $3.75/4 which would be the extreme.
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.