Laura WallaceNortel ASNTEL.TODON'T BUYMay 17, 2006
Still has a lot of issues facing it. Still can't seem to find what it makes or what it sold. Restatements are still going on. There is concern about its ability to have organic growth. Expensive on a P/E basis.
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.