Gordon Higgins, CA, MBANortel ASNTEL.TODON'T BUYJan 25, 2008
This is being a story of hope for many years, but he just can't buy into that hope. You have to believe that sales are going up and that they are going to get higher margins.
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.