Paul Harris, CFANortel ASNTEL.TODON'T BUYJun 30, 2005
Not cheap in his view. Has some good businesses and is on its way to recovering, however the environment now is much more difficult than it was 5 years ago. If you wanted a company in this sector, would prefer to look at Cisco (CSCO-Q).
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.