Cosine said:
NT is doing great. I'm more concerned about RIM at a whopping $108.74 - should I cash in now or hold?
Reading about investments on a public forum like this usually gives me gas. The advice is usually so horrific, it's laughable. Some guys know their stuff others just spew obvious b.s. The guys in this thread however seem to have a clue .
As for Nortel at 8.93...it is simply beginning a cycle that ended in 1999. After 5 years networks need to be upgraded, and new technology is produced. Nortel's future is huge in wireless and VOIP, 2 markets that they didn't have a strong hold back in the alst cycle in '99. The LL optics still suck but it's fading out. Nortel managed an exclusive contract with Verizon who Lucent used to have. Big! + China upgrading these technologies in the next few years.
Take into fact that there are tax write offs this year for technology sector upgrades (Bush election year has goodies), and low interest rates ( until after bush election)...and you have ripe conditions for Nortel steaming up.
As for RIM, the stock is spliting, so no it won't see $150, ect. It might be a 3 for 1 split and the stock price will be back in the 30's. It has more steam in the engine. Saying a stock is overpriced at $100 is pure ignorance without going through the figures, and where it si headed. No need to go on an analysis here as it would take too long.
I own both these plays but reduced in RIM tp purchase some others stuff, with MTM as the biggest hope for a burst. In 2 years I'll own none of this stuff. Cycle peak over, I'm out. When the cycle peak ends and it is going down, the price tends to rocket down while the earnings fade slower. The end result is a lower P/E ratio which fools Joe Investor a whole lot, but remember...never buy on a slope of a down cycle, the results are brutal.
At least people here are making money which is good. Nortel will see much more than 8.93, in fact it went up after hours, so it's more already.
BBLACK