Jim O'ShaughnessyNortel ASNTEL.TOCOMMENTJan 23, 2007
2 things to watch. Look at its price to cash flow. If it's low, it is in buying territory. 2nd, how has it been doing in price appreciation? Check this out for 3, 6 and 12 month price appreciation and if it is in the top of that category, that's the time to think about buying.
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.