Nortel Networks Corporation (NT) by Jason Vergari

Traded on the NYSE

Last stock qoute (OCT.27)- 58.0   %change=+2.5    volume=6659800

Profile- Nortel Networks Corporation builds and supports unified, global,

high capacity public and private data networks. Nortel's systems employ

telephony, Internet Protocol technology (IP) and wireline and wireless

networking. Nortel also operates internationally.  (Bloomberg.com)

Next Quarter (mar00) the average EPS of 11 analysts is .22.  This year's

(Dec.99) EPS estimate is 1.16.  Next year's (Dec.00) EPS estimate is 1.39.

The numbers look good since there is an increase in yearly estimates of

EPS year after year.

Some of Nortel's competitors are Cisco, Nokia, Lucent, and AT&T with

Lucent being it's largest competitor in the telecommunications equipment

industry.

Nortel has been a leader in telecommunications for the last 5 years.

Nortel had a growth of 23.8% which was greater than the growth in the

industry(12.5)% and the S&P(10.3)%. THe strength of this company can also

be witnessed today as the estimated growth for the year is at 20.7% which

is greater that of its industry(14.0%). 

A new product was offered after the acquisition of Clarify in June.

eFrontOffice will be able to combine eBusiness capabilities with customer

relationship. This allows companies to deploy e-business sales, marketing,

and service initiatives. (YahooFinance) This product will definitely make

 its mark as e-business is revolutionizing the way companies perform

routine and structural business transactions.

Much of the Nortel's market lies in public and private enterprises and

institutions;Internet service provides; local, long-distance, cellular and

PCS communications companies, cable television carriers , and utilities.

There has also been an increase in the R&D department. (YahooFinance)

Some of the company's strengths lie in continuous EPS growth and

acquisitions of large-cap communications and e-business corporations.

FOr the quarter - (%surprises)= 10.53% (Sep 98), 2.86% (Dec 99), 10.00%

(Jun 99) and 7.69% (Sep 99). (Bloomberg.com)

Some of the company's weaknesses are low trading volume in comparison to

its size and position in the industry and a negative %surprise in quarter

of Mar 99 which may be explained in the gathering of capital for the cost

of Clarify. (bloomberg.com)

The industry of telecommunications is very strong today as wireless and

fiberoptics products are rising at 20% as more phone companies build

networks to handle internet traffic and data. (bloomberg.com)

I recommend this stock as a near - term accumulate since it has made a

large purchase (Clarify) of 2.1Billion dollars.  We shall see the effects

of this purchase in the next few months.  Since the purchase there has

also been a fairly steady increase in stock value.

One Buy trigger may be the recently announced change in president of the

Enterprise Solutions department of Nortel.  Newly elected president

F.William Conner plans on integrating internet and front office solutions.