Arizona Republic - Nortel Stock Slides, No Word on... -
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Published on: 4/20/2001
Last Visited: 4/21/2001
``With absolutely no visibility and possible losses for the year , plus negative comments about its long-haul optical business , Nortel has no reason to appreciate at all in the near term , ' Epoch Partners analyst Seth Spalding wrote in a research note.
``We could see some more downside before we see improvement.While Nortel is suffering mostly from an industry-wide epidemic , we recommend that investors wait until the stock gets closer to our $ 8- $ 10 valuation before thinking about stepping in.''.
Nortel rivals such as Cisco Systems Inc. ( Nasdaq : CSCO ) and Lucent Technologies Inc. ( NYSE : LU ) have also announced warnings and job cuts amid a slowdown in spending and tight capital supply for their telecoms customers.
Nortel said on Thursday that it will cut another 5 , 000 jobs by mid-year , bringing its staff cuts to 20 , 000 , or about 23 percent of its employees , to bring costs in line with sales.