David BurrowsNortel ASNTEL.TODON'T BUYMay 16, 2007
We are in a bull market and Nortel is not participating. Thinks it still has problems. Would rather look at a railroad or machinery. If we go into a tougher market this will be hit harder then other.
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.