Laura WallaceNortel ASNTEL.TODON'T BUYJan 30, 2008
The stock is tending to go back to the price that it had before its reverse split. She is concerned about the competition in this space. Also consumer demand is expected to be lower. She is still not convinced on the accounting side. If you like this space, you would be better off in Cisco (CSCO-Q).
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.