John O'Connell, CFANortel ASNTEL.TOBUYJul 31, 2007
They have been in a tough position of having to cut costs to stay competitive. The good news is telecommunications is a sector that is highly sought after. He expects to continue seeing rapid growth in this area. Have a lot of good technology.
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.