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The Nortel Two-Step
By Mark Evans | April 30, 2006
Sometimes you wonder if Nortel can't win for trying. The company manages to convince itself its 2005 financial results are ready for public consumption (a positive development), then goes and releases them late in the day on Friday after everyone's headed home for the weekend. (a negative development). From an optics perspective, it gives the impression Nortel is trying to hide something because the only reason to put out a major press release late in the day on a Friday is if you want to avoid attention from investors and the media. Of course, Nortel will probably claim that it received SEC clearance and/or that its finally got the paper work done Friday afternoon so it had no choice but to follow disclosure rules and release them. Maybe this is true but this isn't the first time Nortel has used this Friday afternoon "trick" to release financial news - and may not be the last. If Nortel - and CEO Mike Zafirovski - are looking to regain the confidence of investors and analysts, they at least need to appear that they are being as straightforward and transparent as possible. Putting out a press release to disclose financial results that should have come out a few months ago is not the way to do it.
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Topics: Financials |
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