Bruce Campbell (1)Nortel ASNTEL.TODON'T BUYNov 21, 2005
Looking strictly at fundamentals, you get $0.20 of earnings and give them a higher multiple and a reserve based on their groth, he can only come up with a value of $3.50/4. Fully valued. They need a few years of growth to get back to $8.
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.