David DriscollNortel ASNTEL.TODON'T BUYJan 18, 2006
Avoid it completely. In five years they've had four CEO’s. A revolving door in the executive suite. They've laid off a tremendous number of people. The sector, the industry are not doing well.
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.