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What Was Mark Sue Thinking?
By Mark Evans | November 21, 2008
Putting aside the performance of Nortel’s stock, I’ve been thinking recently about Mark Sue’s decision to slash his target price to zero.
In retrospect, it strikes me as an irresponsible decision because it suggests that Nortel as an operating entity is doomed with no value. As much as Nortel is troubled and has its financial and strategic challenges, Sue is making a huge assumption that can only be described as extreme.
The question is what does Sue see that others don’t. Even a bearish analyst such as National Bank’s Kris Thompson has a 50 cent target price, while the average target price - according to Thomson/First Call - is $1.10.
Maybe Sue is frustrated after having being forced to continually lower his target price, or perhaps he believes Nortel’s prospects are, indeed, bleak. You do have wonder, however, why he stands alone in his ultra-bearish approach, and why zero seemed like such a reasonable number.
Technorati Tags: mark sue, Nortel
Topics: Analyst Coverage |


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