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Archive for May, 2006

More Deets on Mike Z.’s Big Plan

There wasn't anything earth-shattering to come out of Nortel CEO Mike Zafirovski's fireside chat yesterday at J.P. Morgan's annual technology conference. Among the more interesting comments included Zafirovski's belief it will take three to five years to fix the company; the wireless equipment industry needs to consolidate - something that would be good for the [...]

Another Mike Z. Sighting

After speaking at a J.P. Morgan conference today in San Francisco, Nortel CEO Mike Zafirovski will fly across the U.S. to appear at the Lehman Brothers Worldwide Wireless, Wireline and Media conference in New York tomorrow. And who says corporate CEOs don’t work for their money…:)

Can Enterprise Save Nortel?

Ever since Nortel bought Bay Networks for more than $9-billion in 1998, Nortel has been adamant about establishing itself as a leading enterprise player. The idea, in theory, is it should be able to leverage its expertise and strong position in the carrier market to attract enterprise customers. The only problem is this strategy has [...]

Nortel Wins China Deal

Nortel has signed a deal (financial details not disclosed) with China's Ministry of Railways to provide switching centres to enable digital mobile signalling and communications along passenger lines in 20 of the country's 31 provinces. While it's encouraging to see the company do more business in China, the real prize is wireless equipment for the [...]

Fireside Chat with Mike Z.

A week after conducting teleconferences with analysts and the media, Nortel CEO Mike Zafirovski is giving a fireside chat on May 22 at J.P. Morgan 34th annual technology conference. Not sure what it will exactly involve but maybe Mike Z. is finished working behind the scenes to fix Nortel - and now really wants to [...]

Morgan Stanley Analyst Down on Nortel

Morgan Stanely's Scott Coleman, who has been among the more bearish analysts on Nortel, has reduced his 2006 and 2007 EPS estimates after being disappointed by the company's gross margin guidance. "Weaker than expected guidance, particularly for gross margin and operating expenditure, reinforces our thesis that the turnaround story at Nortel will take a while [...]

RBC’s Mark Sue Lowers Target Price

 In the wake of the Nortel's conference call yesterday, RBC Capital Markets analyst Mark Sue has lowered his target price to $3.50 from $4.00, as well as reducing his estimates. He's now looking for 2006 EPS of 4 cents rather than 12 cents, and 2007 EPS of 13 cents rather than 18 cents. "An investment [...]

Time to Jump In?

Although 2006 will not be a good year financially for Nortel, maybe the time is right to jump before CEO Mike Zafirovski's overhaul starts to bear fruit. In a research report, TD Newcrest analyst Chris Umiastowksi said "Nortel is probably a good investment for those with an investment horizon of at least one year". He [...]

Mixed News from Nortel

The bad news is Nortel will post first-quarter loss deeper than a year ago on soft sales. The good news is life will be good again by 2009 when operating margins will be in the double-digits. So, this means investors need to digest the painful news of today, and then buy into the assumption that [...]

Nortel Tells All Tomorrow…We Hope!

So what's CEO Mike Zafirovski going to say tomorrow when Nortel holds conference calls with analysts and the media. UBS Securities believes there will be some commentary on 1Q 2006 results and an update on the company's business strategy. UBS expects Nortel to have 1Q revenue of $2.63-billion, up 10% YOY, EPS of $0.02 vs. [...]