It’s just a thought and perhaps it comes from way out in left field (apologies for the baseball analogies) but what if Nortel was sold in pieces rather than trying to get bigger through an acquisition or joint venture? So speculates Orion Securities analyst Duncan Stewart, who suggests a sum-of-the-parts analysis indicates "Nortel disassembled may be worth significantly more than its current market cap". As a loyal Canadian, Stewart thinks it would be great if Nortel could survive and thrive. He ponders why Nortel couldn’t become a "profitable and happy equipment manufacturer, although than some others" if it CEO Mike Zafirovski keeps working away on his cost-cutting program.
Nortel outsources equipment manufacturing (ever hear of FlexTronics?).
Nortel is more of a “networking software / services” business nowadays.
What are these “analysts” smoking?
Duncan
In truth, Nortel doesn’t actually manufacture much these days (unless M&A rumours count!)
But for historical reasons, Nortel and its peers are still called “telecom equipment manufacturers.” It may be an anachronism, but it isn’t much worse than calling the guys who work at radio stations “DJs”, which stands for disk jockeys, when they don’t use much in the way of disks any more.
http://nortel.wordpress.com/ nortel
good point. perhaps it’s better to call them “suppliers”……
USAtalks
Nortel doesn’t make anything. The only thing Nortel is doing is moving jobs out of Canada and the US to low cost countries. But if Nortel doesn’t make anything what are the Turks and Mexicans doing? And BTW Nortel has not been profitable or a happy place since the 90s.
Breakup the Yankees….and Maybe Nortel
It’s just a thought and perhaps it comes from way out in left field (apologies for the baseball analogies) but what if Nortel was sold in pieces rather than trying to get bigger through an acquisition or joint venture? So speculates Orion Securities analyst Duncan Stewart, who suggests a sum-of-the-parts analysis indicates "Nortel disassembled may be worth significantly more than its current market cap". As a loyal Canadian, Stewart thinks it would be great if Nortel could survive and thrive. He ponders why Nortel couldn’t become a "profitable and happy equipment manufacturer, although than some others" if it CEO Mike Zafirovski keeps working away on his cost-cutting program.