Jefferies & Co. analyst George Notter has upgraded Nortel to “buy” from “hold”, citing its low share price and changes being made by CEO Mike Zafirovski. “Employee morale is improving, underperforming executives are leaving and talented new managers are coming in,” Notter said, who raised his target price to $3 from $2.24.
To measure this, it’s best speaking to employees instead of management
Godzilla
about these “underperforming executives”, I can’t say I am a fan of many of them, but this is a gross oversimplification. People who are leaving, are people who have opportunity, are in the wrong place at the wrong time, can’t see eye to eye with Mr. Z, etc. And, yes, some of them are underperforming.
And about “these talented new managers coming in”? The best that can be said about them is that they are fresh blood, and god knows, Nortel needs fresh blood. The fresh blood that has come, has been mostly in operations which was in sore need of it. No fresh blood has come in line functions such as R&D and sales or business line management.
Eventually, only time will tell if these “new managers” are indeed talented. Say, Mr Z. is successful. He and his teams will be heroes. Say, he bellyflops, and is replaced, many of his “talented new managers” will follow his footsteps to the door very closely. And Mr. Notter will hail the news, saying that “underperforming executives are leaving”, time to buy.
anonymous nortel employee
the only moral improving is those employees that are finding other jobs before they get axed
USAtalks
Employee morale improving – by whose survey? The only way for employees’ morale to improve is if employees realize working for Nortel is a job not a career. This is where you come for money, not stock options, not for retirement, not for benefits into retirement, just cold hard earned cash. The gravy train left and is parked at executive station.
Jefferies Upgrades NT
Jefferies & Co. analyst George Notter has upgraded Nortel to “buy” from “hold”, citing its low share price and changes being made by CEO Mike Zafirovski. “Employee morale is improving, underperforming executives are leaving and talented new managers are coming in,” Notter said, who raised his target price to $3 from $2.24.