Norman LevineNortel ASNTEL.TODON'T BUYOct 25, 2005
The psychology towards the stock has changed with the management change. Starting to do the right things. From a valaution point of view it's probably not far off of being fully valued.
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.