师座和兔子应该可以喘口气了. 从某个地方得到, 低位C$2.00, 一年目标C$8.00
OTTAWA, June 5 (Reuters) - The abuse of Nortel Networks Corp.'s (NT) bloodied stock worsened on Wednesday as short sellers punched the shares of the telecom equipment supplier to lows not seen since 1986.
Nortel, caught in the grips of a global spending squeeze, has been hammered in the last two trading sessions after announcing it will raise $800 million through the sale of convertible securities and common shares.
"What we are mainly hearing is it's people shorting the stock," said Duncan Stewart, a partner at Tera Capital Corp., of the stock drop. "It probably will continue into tomorrow morning and then, maybe the pressure lifts off as we get closer to the pricing of the deal."
Short selling is a strategy in which investors, having borrowed shares to sell at one price, profit when a the stock price falls before they have to pay for them.
Pricing for the financing, which is expected to add about 450 million to 500 million shares to Nortel's 3.2 billion shares outstanding, is likely to come on Thursday after the markets close.
In the meantime, Nortel shares are being battered by a host of factors as investors fret about dilution from the financing deal, the need for more cash, a possible stock consolidation, and removal from the benchmark Standard & Poor's 500 index, analysts said.
Nortel shares, which shed about 14 percent on Tuesday, lost more than 10 percent in heavy trade on Wednesday as more than 32 million shares moved on the New York Stock Exchange and 28 million on the Toronto Stock Exchange.
The stock lost 20 cents to end at $1.60 on the New York Stock Exchange and 29 Canadian cents to C$2.47 on the Toronto Stock Exchange.
It's a breathtaking slide from the company's high-flying days of 2000, when its stock peaked at a record high of C$124.50 in Toronto.
"It's a supply issue here that investors are concerned about," said Jeff Cheah, a strategist at Standard & Poor's MMS in Toronto, referring to the additional stock expected from the financing.
"It's going to change the supply-demand dynamics because you have a sudden influx of stock coming in. It's going to depress the stock prices and what we're seeing today is a clear reflection of that."
Nortel needs a cash influx as its financial reserves and revenues shrink amid a meltdown in demand for telecom equipment.
The company, which is widely seen to need about $1.5 billion in cash to get through the year, is expected by some analysts to burn through $2.1 billion during the remainder of 2002 and $1.6 billion in 2003.
Nortel had $3.1 billion in cash at the end of the quarter, down from $3.5 billion at the end of last year.
Last week, Nortel said it will cut 3,500 more jobs and may sell its fiber-optic parts business to further pare costs. Those cuts, which will drop the company's break-even quarterly sales level to $3.2 billion from $3.5 billion, will be complete by the fourth quarter, it said.
"This is oversold -- it's no worse a situation than some of their peers like Lucent (LU) and Alcatel ," said Thomson Kernaghan analyst Madhav Hari, who has a long term "buy" rating on Nortel. "I think it's being unduly punished."
Hari expects the stock to rally after pricing details of the financing are announced. Until then, skittish investors are likely to keep the stock depressed, he said.
"There's talk that they might consolidate it and that's not always a good sign when a stock's going down," said Hari, adding that it can spur more short selling.
"Splits help you on the upside, definitely, and consolidation does not help you on the downside."
OTTAWA, June 5 (Reuters) - The abuse of Nortel Networks Corp.'s (NT) bloodied stock worsened on Wednesday as short sellers punched the shares of the telecom equipment supplier to lows not seen since 1986.
Nortel, caught in the grips of a global spending squeeze, has been hammered in the last two trading sessions after announcing it will raise $800 million through the sale of convertible securities and common shares.
"What we are mainly hearing is it's people shorting the stock," said Duncan Stewart, a partner at Tera Capital Corp., of the stock drop. "It probably will continue into tomorrow morning and then, maybe the pressure lifts off as we get closer to the pricing of the deal."
Short selling is a strategy in which investors, having borrowed shares to sell at one price, profit when a the stock price falls before they have to pay for them.
Pricing for the financing, which is expected to add about 450 million to 500 million shares to Nortel's 3.2 billion shares outstanding, is likely to come on Thursday after the markets close.
In the meantime, Nortel shares are being battered by a host of factors as investors fret about dilution from the financing deal, the need for more cash, a possible stock consolidation, and removal from the benchmark Standard & Poor's 500 index, analysts said.
Nortel shares, which shed about 14 percent on Tuesday, lost more than 10 percent in heavy trade on Wednesday as more than 32 million shares moved on the New York Stock Exchange and 28 million on the Toronto Stock Exchange.
The stock lost 20 cents to end at $1.60 on the New York Stock Exchange and 29 Canadian cents to C$2.47 on the Toronto Stock Exchange.
It's a breathtaking slide from the company's high-flying days of 2000, when its stock peaked at a record high of C$124.50 in Toronto.
"It's a supply issue here that investors are concerned about," said Jeff Cheah, a strategist at Standard & Poor's MMS in Toronto, referring to the additional stock expected from the financing.
"It's going to change the supply-demand dynamics because you have a sudden influx of stock coming in. It's going to depress the stock prices and what we're seeing today is a clear reflection of that."
Nortel needs a cash influx as its financial reserves and revenues shrink amid a meltdown in demand for telecom equipment.
The company, which is widely seen to need about $1.5 billion in cash to get through the year, is expected by some analysts to burn through $2.1 billion during the remainder of 2002 and $1.6 billion in 2003.
Nortel had $3.1 billion in cash at the end of the quarter, down from $3.5 billion at the end of last year.
Last week, Nortel said it will cut 3,500 more jobs and may sell its fiber-optic parts business to further pare costs. Those cuts, which will drop the company's break-even quarterly sales level to $3.2 billion from $3.5 billion, will be complete by the fourth quarter, it said.
"This is oversold -- it's no worse a situation than some of their peers like Lucent (LU) and Alcatel ," said Thomson Kernaghan analyst Madhav Hari, who has a long term "buy" rating on Nortel. "I think it's being unduly punished."
Hari expects the stock to rally after pricing details of the financing are announced. Until then, skittish investors are likely to keep the stock depressed, he said.
"There's talk that they might consolidate it and that's not always a good sign when a stock's going down," said Hari, adding that it can spur more short selling.
"Splits help you on the upside, definitely, and consolidation does not help you on the downside."
:flaming: 
:bounce: :gun: :bad:
