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Author Topic:   Nortel Networks (NT)
dude
posted 12-27-1999 11:24 AM     Click Here to See the Profile for dude      Reply w/Quote
> Is it even worth looking at the total float?
If you're a buy and hold investor, don't worry about the float. It's more useful for technical analysis, micro-caps and short selling. Instead, pay attention to shares outstanding... multiply it by current share price to get the market cap of the whole company, and decide whether the company is worth that amount. Whether you're buying a few shares or a whole company, the analysis is fundamentally the same. The market thinks that Nortel is worth $136 billion and that Lucent is worth $238 billion. What do you think?

> And with the big picture - what other variables should be factored in with these?
Everything else that goes into any decision of whether to buy a stock. InvestorGuide.com has some good suggestions for investors who aren't sure what to look for.

Machiavelli
posted 12-27-1999 09:54 AM     Click Here to See the Profile for Machiavelli      Reply w/Quote
I'm trying to decide between investing in Lucent and Nortel. Besides the obvious difference in business focus, i'm trying to make the decision easier for myself by comparing some fundamental values. One question I have surrounds total float: Nortel is currently trading around 99 with a float of 1.2 billion shares. Lucent trades around 78 with a float of 3 billion shares. Is it even worth looking at the total float? When just looking at these numbers, what conclusions can be drawn? And with the big picture - what other variables should be factored in with these? Thanks.

InvestorGuide Daily
Administrator
posted 12-15-1999 06:30 PM     Click Here to See the Profile for InvestorGuide Daily      Reply w/Quote
Nortel is buying optical networking startup Qtera for $3.25 billion in stock, to improve its long-range networks.
http://www.techweb.com/wire/story/reuters/REU19991215S0003

Machiavelli
posted 12-13-1999 04:36 PM     Click Here to See the Profile for Machiavelli      Reply w/Quote
Nortel signed a deal with AT&T to supply the telecommunications services giant with up to $600 million of wireless network equipment over the next three years.

Machiavelli
posted 12-10-1999 03:53 PM     Click Here to See the Profile for Machiavelli      Reply w/Quote
Nortel Networks is nearing a deal to acquire Qtera for $2.5 billion to $3.5 billion in stock, citing executives close to the talks. Qtera is underwritten by a group of venture capitalists and is involved in developing the next generation of optical communications technology. The executives said a deal could be announced within a week but cautioned talks could still fall apart.

Machiavelli
posted 11-22-1999 03:09 PM     Click Here to See the Profile for Machiavelli      Reply w/Quote
smario, I'm with you, though I'm trying to choose among Lucent, Nortel, Cisco, et. al, as they all seem to be converging in terms of state of the art end-to-end solutions.

Anyway, here's another quote from the CEO of Nortel: "We announced earlier this year that in the middle of next year we will be deploying 160 colors, each color representing 10 gigabits, on a single fiber. So that's 1.6 terabits. Today, for $10,000 you can probably go and buy one terabit of storage. If you apply Moore's law to that -- and we're beating Moore's law at Nortel in terms of optical development -- that storage system could cost you $100 not too far down the road. So that's storing 1,000 movie titles, allowing you to watch them at anytime you want -- absolutely destroying the notion of private time and allowing you an immense amount of freedom." Cool.

Also, the ticker symbol is NT, not NTL.

smario
posted 11-19-1999 02:20 PM     Click Here to See the Profile for smario      Reply w/Quote
I'm becoming a huge Nortel fan. There stock has gone up to 80 since it was at 20 last December (I finally noticed it today!...too bad). Here's a great quote about the long term goal for Nortel from Executive VP Clarence Chandran:
"By the year 2003 or 2004, you'd see the requirements for bandwidth grow by a factor of 100 or 200. And we fundamentally believe that in order to do that, you will need an optical Internet. That's really what is going to give you the kind of capacity and reliability and scalability that is required on that network. And that is why we are focused on building the high-performance, profitable Internet. That's where the money's going to be, and that's where we are going to be. You have to continually disrupt the market in order to achieve this. The optical Internet and our leadership in this area is delivering precisely that."

Now I just need to decide at what level I'm willing to get in on...even though I want to go long term on this one, I still need to make sure I can spend the cash for 80 a share now!

MaxPower
posted 10-19-1999 11:10 AM     Click Here to See the Profile for MaxPower      Reply w/Quote
And the acquisitions continue...
Nortel Networks agreed to acquire software maker Clarify for $2.1 billion in an all-stock deal. Nortel will offer Clarify shareholders 1.3 Nortel shares for each share of Clarify. It's expected to close in the first quarter of next year. The move will help Nortel to capitalize on the fast-growing customer relationship management (CRM) software market, which has companies scrambling to install platforms that allow them to better serve customers by automating operations such as help desk and call center services. Clarify is the number two front office software vendor behind Siebel, and their stock has gone from $7.50 to $50 in a year's time. About 25% of Clarify's $131 million in sales last year came from its suite of telecommunications products, which link a company's sales and services operations. Customers include British Telecommunications, Sprint PCS, and Global Crossing's Frontier Communications.

MaxPower
posted 08-25-1999 05:17 PM     Click Here to See the Profile for MaxPower      Reply w/Quote
Yesterday, Nortel agreed to purchase voice and data networking company Periphonics in a $436 million stock swap expected to quickly bolster Nortel's voice and Internet call center offerings. Good or bad deal? Take a look at this info I grabbed to see:
"On July 8, Periphonics reported fiscal year 1999 revenue of $142 million, up 21.3 % from last year. More importantly, net earnings per diluted share were $0.65 -- up a marvelous 103% from the same period a year ago. The 900-employee firm posted net income of $8.9 million, up 101% from last year...
Quarterly figures for the period ended May 31 looked even better, with revenue up 36% to $44 million and net income up a blistering 354% to $4.9 million, or $0.36 per diluted share...
Earnings has grown at almost five times sales. Gross margins increased to 51% from 48% a year ago. Net margins nearly doubled to 6.2% from 3.7%. Sales, general, and administrative (SG&A) costs increased 15% to $42 million, but grew at a slower clip than sales. Inventories and receivables grew at a modest 14% and 19.6%, respectively, again slower than sales growth...
The company has $26.5 million in cash and no long-term debt. It also posted increases in all sales categories and almost all regions for the year. System sales jumped 22.5% and maintenance revenue grew 17.6%...
Nortel plans to let Periphonics operate as a wholly owned subsidiary and keep its chairman, chief executive, and president running the show. Nortel will add Periphonics' products to its own to offer its customers sleek voice and Internet-enabled call centers."

I think it's a pretty good deal, you?

daffy
posted 08-20-1999 02:28 PM     Click Here to See the Profile for daffy      Reply w/Quote
Nortel announced yesterday that it's been picked as the exclusive systems integrator and prime contractor for a billion-dollar global network expansion by Cable & Wireless PLC. Here's the story: http://www.upside.com/texis/mvm/news/wire?id=37bc832ec

newsman
posted 07-28-1999 03:19 PM     Click Here to See the Profile for newsman      Reply w/Quote
Nortel shares rose 2 1/8 to 88 3/8 today after the Canadian maker of computer-network equipment posted operating income of $368 million, or 55 cents a share, a nickel above analysts' estimates, according to figures compiled by First Call. The company earned $2.2 million, or 40 cents, in the comparable quarter last year. Revenue rose 30% to $5.41 billion in the quarter from $4.16 billion in the same period in 1998.

MaxPower
posted 05-19-1999 12:03 PM     Click Here to See the Profile for MaxPower      Reply w/Quote
(also posting response on all three boards): There seems to be a major paradox evident in this article. Nortel believes in voice over IP, and believes that all voice and data will be over Internet real soon, stressing the need to move now. Yet Lucent believes in ATM technology, and foresees a much slower evolution of voice to Internet, allowing for more time. Yet ATM is a proven technology now, whereas IP is not. So the only way IP would fit into Nortel's quick vision is if the technology were perfected in the immediate future, which I doubt. So maybe Nortel (or Cisco) won't win out in the short term...who knows. But it's still hard to bet against proven companies.

newguy
posted 05-19-1999 10:11 AM     Click Here to See the Profile for newguy      Reply w/Quote
Article about Nortel vs. Lucent vs. Cisco: (I'm posting it on all three boards) http://www.forbes.com/Forbes/99/0517/6310071a.htm

mrcool
posted 05-13-1999 04:24 PM     Click Here to See the Profile for mrcool      Reply w/Quote
Nortel Networks, Canada's largest telecommunications company, is selling plants and cutting 1,000 jobs as part of a restructuring plan intended to make the company more competitive. The job cuts and other measures announced today were part of a retrenchment program the company originally revealed in January. Starting this year, Nortel will contract out all but its most complex printed circuit board assembly, most of its electro-mechanical subsystems manufacturing and a significant part of its repair business. About 4,000 employees will be affected - half the workers Nortel estimated in January could lose their jobs by the changes. About 3,000 workers are expected to be hired by the contract manufacturers who buy the divested plants, while 1,000 jobs will be cut.

Art Vandelay
posted 04-24-1999 03:47 PM     Click Here to See the Profile for Art Vandelay      Reply w/Quote
It's a voice-over-IP frenzy: Nortel Networks said last week it intends to buy Shasta Networks for $340 million in stock and cash. That deal marks nearly $3 billion in acquisition money committed to VoIP companies on Tuesday, with similar deals between Cisco and GeoTel ($2 billion), as well as with Ericsson buying Torrent Networking and TouchWave ($500 million). Shasta's flagship product is the Subscriber Service System, a multiservice platform that lets ISPs aggregate thousands of customers and provision customized services for them. Previously, service providers needed combinations of single-function equipment pieces that are expensive and cumbersome to manage to offer services such as DSL or virtual private networking.

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