Bill MacLachlanNortel ASNTEL.TODON'T BUYJan 10, 2006
We have been through so much with this company. Many false starts and hopes that things have turned around only to find those hopes dashed. In a very competitive business with significant changes occurring. Has lost the dominant position they once held. A speculation at these levels.
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.