Robert McWhirterNortel ASNTEL.TOTOP PICKOct 27, 2005
Seems to be a play in the high speed down link packet access. Also have a new product on the enterprise side which is a PBX in a box which also offers Voip protocol. Earnings are expected to grow from $0.09 to $0.22 in '06 against a 17 PE.
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.