Archive for March, 2006
« Previous EntriesNext Entries »Nortel Still a “Sell”
Saturday, March 18th, 2006Standard & Poor’s analyst Kenneth Leon has maintained a “sell” recommendation on Nortel, suggesting CEO Mike Z.’s cost-cutting program may not be enough to generate higher financial returns. Leon’s decision comes in the wake of the latest saga in Nortel’s recovery efforts as the company’s insurers have agreed to cover pay $228.5 million toward former [...]
Got NT Fever? Wait!
Friday, March 17th, 2006Now that Nortel has issued its last (??) restatement, everyone seems willing to be forgive and forget. The analysts are climbing back on board with research reports that talk about higher revenue and areas of strength, while CEO Mike Z. is working away to re-invent the company. Before anyone gets too excited, try to be [...]
Class-action Lawsuit Settlement Cost Rises
Thursday, March 16th, 2006In the wake of Nortel’s plans to cough up $2.47-billion of cash and stock to settle two major class-action lawsuits, the company’s insurers have subsequently agreed to chip in another $228.5-million as a result of their liability coverage for Nortel officers and directors. The additional cash means Nortel will become the fourth-largest settlement of a [...]
Rumour du Jour: Ericsson Buying Juniper
Wednesday, March 15th, 2006Is Ericsson willing to spend $11-billion (not including a takeover premium) for Juniper Networks? Apparently, there is speculation the Swedish company is interesting in the IP router maker, even though it would an all-stock deal would be highly dulitive and complicated by Juniper’s partnerships with Lucent and Siemens, which account for 20% of its sales. [...]
Prudential Maintains Rating
Wednesday, March 15th, 2006Prudential Financial analyst Inder Singh has maintained his “overweight” rating on Nortel but reduced his 2005 and 2006 EPS estimates to $0.09 to $0.06 and from $0.20 to $0.18 respectively. He said Nortel’s preliminary 4Q 2005 revenue fell short of consensus while earnings were in line. His 12-month target price is $4.
Auditors Not Investigating
Tuesday, March 14th, 2006Faced with growing questions why a revenue-recognition problem has prompted yet another restatement, Nortel said yesterday its internal and external auditors are not conducting an investigation into the matter. Nortel said the auditors are performing a review related to “internal control deficiencies” and not investigating improper conduct. However Nortel defines “internal control deficiencies”, it doesn’t [...]
UBS Upgrades Target Price; Desjardins Downgrades NT
Monday, March 13th, 2006In the wake of yet another restatement at Nortel, UBS Securities analyst Robert Dennison has raised his target price to $3.50 from $3.25 while still maintaining his “neutral 2″ rating. The rationale? Dennison believes Nortel’s revenue (excluding the joint venture with LG) will rise 2% in 2006 and mid-single digits in 2007 at a time [...]
Nortel’s Low CeBit Profile
Sunday, March 12th, 2006Nortel - along with Cisco - does not have a booth at the massive CeBit trade show in Hannover, Germany. Instead, it has a booth with joint venture partner,LG Electronics Inc. Apparently, Nortel is taking a look at how it approaches “live brand communications” (a.k.a. conferences, seminars, etc.) With Nortel about to launch itself into [...]
Another Restatement: Why?
Saturday, March 11th, 2006In the wake of Nortel’s third restatement in three years, you have to ask why it happpened. What prompted Nortel to convince itself that yet another review of how it recognizes sales was required just as it was starting to regain some of its credibility with investors? You have to know this is not what [...]
Yet Another Financial Restatement
Friday, March 10th, 2006Is anyone surprised by the fact Nortel is doing yet another review of its financial statements? This time, it’s focused on contracts signed last year. And although the company insists it isn’t material, the perception that Nortel is still trying to resolve its accounting scandal is troubling. At some point, Nortel needs to have a [...]
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