I think the optimism over last quarter is misleading considering they had a 6 cent loss largely attributed to their money losing BSNL gamble comparitive to Q304. Taking this out would show year after year loses are ongoing and not as rosey as they are painted out to be. The street expected 2 cents and they came in at minus 2... The areas we saw increase remind me of a hot dog stand that gives hotdogs away for free to increases traffic and be seen doing something, anything, in desperation, when all it is going is losing money. Seen doing "seemingly good business" helped tham last time before this mammoth fraud came to light. Cash is still declining from $3.06B to 3.0 (if it is that exact to alleviate showing say 2.99) and the loss of 105Million is not good news. Who knows how much they dilluted 100M shares are shown for the last few updates. The main issue remains that they can burn cash a lot faster than they can earn it. In light of this and their endless woes which I feel strongly some are insurmountable, an analyst more realistically downgrading the stock: Nortel Networks (NT ): Cuts to 2 STARS (sell) from 3 STARS (hold) Analyst: Kenneth Leon, CPA Third quarter results of breakeven vs. 6 cents loss, before special items, is 3 cents below our estimate. A 7% sales decline quarter over quarter is due to a sharp drop in wireless network demand, in our view. While Nortel sees 13% sales growth for 2005, we forecast 4% to 7% growth in 2006 and 2007. We are less than optimistic that Nortel will regain wireless sales growth; thus, we see more pressure on its fixed-line unit. We are lowering our 2005 earnings per share estimate to 6 cents from 8 cents but maintaining our 2006 estimate of 15 cents. With concerns about a weak first half 2006, we are lowering our 12-month target price to $3 from $3.50