Maybe investors’ enthusiasm for Nortel is healthily tempered. The stock has climbed a modest 30 cents to $22.84 in mid-afternoon trading despite the positive piece in Barron’s. Interesting.
Nortel is bound to be leader in almost the market segment in which is present and, can you believe it?, leading innovator for some of them like PBT in Carrier-grade Ethernet Switch, a hugely growing market opportunity both at the edge and the core.
Being a leaner and more focused competitor in comparison to the new larger agglomerate may put Nortel at and advantage.
Management is extremely focused and committed to the 1.5 bln$ cost savings by 2008 and, even this is a tough job, chances are that they will succeed to accomplish a significant part of it.
Technically speaking by some advanced market indicators, Nortel is a great buy in my opinion and may considerably rise by 2008 year-end.
M
Ryan
I think that we need to keep in mind two things. For every yes-sayer, such as Barron’s, there are many more nay-sayers of Nortel. This critics will continue to keep the stock price low until the company has full-out proven itself. Secondly, the Barron’s report was highly optimistic, using numbers and projections that are at the higher end of estimates, according to what I heard on ROB-TV today. But hopefully many more investors will begin to see the value in this stock and its potential and jump on board as well. I must admit, I was disappointed with today’s performance given the article.
The Power of Barron’s?
Maybe investors’ enthusiasm for Nortel is healthily tempered. The stock has climbed a modest 30 cents to $22.84 in mid-afternoon trading despite the positive piece in Barron’s. Interesting.