Werner MuehelemannNortel ASNTEL.TOWAITAug 09, 2005
Has a neutral stance on this stock. Getting more positive on it because of the last results, but the last results were created by deferred revenue or software revenue which put their results more in line with what they were expecting. The space in general is getting better. Wait for another quarter to see the results.
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.