John O'Connell, CFANortel ASNTEL.TOBUYAug 27, 2007
Management seems to be doing all the right things. Telecom is a good space to be in. Reasonable valuation. Would Buy as a trading position for example under $20, and then sell at $26.
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.