Nortel Networks Corp (NT)

Yoshimi said: "[B][URL=http://finance.yahoo.com/q?s=NT]Nortel Networks Corporation[/URL][/B] engages in the design, development, manufacture, assembly, marketing, sale, licensing, installation, servicing, and support of networking solutions that consists of hardware, software, and services. The company operates in four segments: Wireless Networks, Enterprise Networks, Wireline Networks, and Optical Networks. The Wireless Networks segment provides communications networks that enable end-users to be mobile while they send and receive voice and data communications using wireless devices, such as cellular telephones, personal digital assistants, and other computing and communications devices. The Enterprise Networks segment provides data, voice, and multimedia communications solutions that include circuit and packet voice solutions, and data networking and security solutions to enterprise customers. The Wireline Networks segment provides data, voice, and multimedia communications solutions to service providers, such as local and long distance telephone companies, wireless service providers, cable operators, and other communication service providers. The Optical Networks segment solutions transport data, voice, and multimedia communications within and between cities, countries, or continents by transmitting communications signals in the form of light waves through fiber optic cables. This segment consists of long-haul and metropolitan optical products. Nortel Networks serves various enterprise customers, such as large businesses and branch offices, small businesses, home offices, and government agencies; educational and other institutions, and utility organizations; customers in the telecommunications, manufacturing, government, and financial services sectors; and customers in the healthcare, retail, education, hospitality, services, transportation, and other industry sectors worldwide. The company has strategic alliances with Calix Networks, Inc.; ECI Telecom, Ltd.; and KEYMILE AG. Nortel Networks is headquartered in Brampton, Canada."

Yoshimi said: "I saw NT posted in another thread, and I checked it out. Tell me what you think."

sp0om said: "What do [U]you[/U] think of it? ;)"

Yoshimi said: "i think it has definite potential, i mean, look at the graph to see what it was at about 5 years ago, it was around 100... and they have an estimated price of 7.40 by next year. they have been doing quite well the past few months, but i probably wouldnt buy what do you guys think"

sp0om said: "I'm going to sit this on out."

SHIFTY101EASY said: "thinking of buying like 5-10 shares tomorrow just because its the best stock i have come across after glancing at a few....im gonna look around a little more tonight though...make a decision in the morning maybe..."

HappyHarry said: "Nortel still doesn't make any money. No earnings usually equals very little appreciation in the stock price. Just because a stock was $100 a few years ago does not mean it will ever achieve that status again. It just means people were wrong a few years ago."

LanceJ said: "NT: I give it a strong buy. Just off the newswire: "reported that second-quarter net income nearly tripled year-over-year. On Monday, the network technology company posted net income of about $45 million versus $16 million in the same period last year. Earnings per share for the quarter was a penny versus breakeven in the year-ago period. Revenue rose 10% to $2.86 billion. For the full year 2005, Nortel expects revenue to grow in the range of 10% year-over-year while reflecting a seasonal pattern." NT has a forward P/E of 18.5 A sizzling P/S of 1.4 Qtrly Earnings Growth (yoy): 181.20% A crossover of the 50 day and 200 day MA to the upside on rising volume. Its current price of $3.33 is a steal."

HappyHarry said: "How does 1 cent in earnings give them a forward P/E of 18.5?"

lucifer89 said: "yeah! it makes sense to analysize it that way because once the stock is off its 50 moving average, it is typically doing well. and of course if the 50MA is better than the 200MA, thx lancej"

lalasushi said: "When a stock rises 1% above its 200 day MA, its usually a signal to buy. Loosly quoted from [U]Stocks for the Long Run [/U] by: [I]Jeremy Seigel.[/I] Buy it if you like the stock. The increse in profits looks promising."

LanceJ said: "[QUOTE=HappyHarry]How does 1 cent in earnings give them a forward P/E of 18.5?[/QUOTE] I think we're looking at a projected through Dec. 2006 figure; hence Forward P/E."

LanceJ said: "Alright, spent a few hours going through the 13f SEC filings of the major institutional holders tonight, for the period of Jan. - June.... bummer... here's the activity for the top institutional holders for this period: PRIMECAP MANAGEMENT COMPANY decreased their position by 4 million shares. CAPITAL RESEARCH AND MANAGEMENT COMPANY holding same amount of shares. Massachusetts Financial Services Company increased holdings by 39,898,065 shares CITIGROUP INC. decreased holdings by about 12 million shares. AXA decreased holdings by 3,298,849 shares TD ASSET MANAGEMENT, INC decreased holdings by about 2 million shares. This has helped me update my thesis.... my goal will be a 5 - 10% move above $3.37 (my cost basis).. so anything above $3.60 = sell. This is a purely speculative play for me, not an investment. See GDVE.PK for a short discussion on the difference between the two. I don't like to trade against the institutions. Some of the volume spikes in August could be institutions buying into the very positive earnings announcement, but we just don't know. What we do know is 3 out of the top 5 institutions have been reducing their positions between Jan - June 2005. If I can pull in a quick 5 - 10% profit within the next 2 weeks, I'll take it: Kramer's "Go on take your money and run" song comes to mind. $3.00 is my mental stop loss.* :cool: *Mental stop losses are better to set than actual ones. Reason: the institutions have access to all the limit orders, and can play the stops. Insiders-exchange members- can see your stop orders, and they definitely go fishing for them. Playing the stops, for example, is when an institution sees a large number of stop loss and will either sell, or short a stock to hit the stop loss price and therefore trigger the selling of the stock that will push it down even further. They then reverse their position and buy it back. It's called "clearing the table" and is popular with Hedge Funds, it knocks players out of the game (or out of your stock). But it's not just institutions, there's also decimilation tactics. Say there's a limit order to sell a particular stock at $10 and stocks are quoted in eighths. If a market order comes in that would have hit that limit order, a specialist can pick off the order by offering a higher price. When stocks are quoted in eighths the specialist would have to bid at least 10 1/8 -- a 1.25% premium. But things change if the minimum tick size falls to a penny, as it has in many cases under decimalization. In that case a specialist firm could jump around the limit order by bidding as little $10.01, a miniscule one-tenth of a percent more than that limit order sitting on the books. They could then, of course, turn around and hit the limit order, neatly profiting from the difference in the transaction. This is why I NEVER place limit orders. All orders are placed "at market". I keep the stop loss amount in a little piece of paper in my shirt pocket. When a stock hits my mental stop loss, I place a market order to sell. A stealthy, in and out approach, where no one has an idea of what I'm going to do until after I do it. Trading with small amounts, it may not be necessary, but when you trade with $10,000+ in a single stock, you may want to consider if you notice your stop orders are continuously "being played"."

LanceJ said: "By the way, the above speculative play and insider information is for NT, not GDVE..."

LanceJ said: "LG Electronics, Nortel Sign Definitive Agreement to Establish Joint Venture for Telecom, Networking Solutions [url]http://biz.yahoo.com/bw/050816/166085.html?.v=1[/url] Too bad share holders of NT are not given shares in this new entity LG-Nortel Co. Ltd. Like for every shart of NT you have, you are given 1 share of LG-Nortel... dream dream dream.... Summary: Today is another milestone for Nortel as we continue to demonstrate our commitment to open up the Asia region with a best-in-class technology leader."

LanceJ said: "Update NT hit my stop loss of $3 awhile back so I'm out. I was so focused on the Sticky Six picks research that I forgot to keep ya all posted."

jlipin3 said: "Such a crap-ass stock. There's so many other stocks out there that would make a better investment. Check out something like TIE [url]http://finance.yahoo.com/q/bc?s=TIE&t=1y[/url]"