David DriscollNortel ASNTEL.TODON'T BUYDec 06, 2007
The good news is, they've been cutting costs. The bad news is, they've cut costs by letting people go, which is never a good sign for a company. They have a long ways to go to get up to the next generation of lifeline and ymax.
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.