According to AdWeek, Nortel has awarded its global advertising accounting to McCann Worldgroup following a review. Dallas-based The Richards Group had previously handled Nortel. Rob Bagot and John McNeil, both executive creative directors at McCann in San Francisco, will oversee creative development on a campaign scheduled to be launched in the first quarter. The contract is estimated to be worth $40-million to $45-million, and will include digital, online and traditional advertising.
I am happy to get out of this stock when I did. If a reverse split does not work in the best of situations I do not see how it will work for nortel. I still hope that I am wrong and they can finally wake up from this long nightmare but I couldn’t let my money sit in this stock any longer as it has been nothing but bad news quarter after quarter and year after year. Obviously there was no easy fix as was reported when Mike Z. first took the job but somehow I guess I still thought that things would of turned around sooner. A reverse split I fear is a last ditch effort to turn this company around but I don’t think it will change the inevitable. I wish there were some sort of examples or reassurance that could make me think this company will survive and if so I would have gladly kept my investment in it as I am young enough to wait a few years to allow the company to turn around and finally award me for my patience but I just don’t see it. It’s been a expensive lesson but one that I needed to learn.
Observer
Generating awareness with their target audience through various medias isn’t the most daunting task at hand. The $45 million in advertising they can ill afford losing money is nothing compared to the $300 million they need for the SAP software to fix their accounting. The over $200M a year they pay on 10.5% B3 rated bonds don’t help either. Heck, there are even the problems with declining margins and ongoing increasing costs and even competition… it is endless
Changing slogans or marketing managers isn’t worlking either. What will an ad capaign do even if they had competitive product, who would buy it?
Short of no hope in this trend, so many can’t lose what they havn’t got approaches have only led to more losses as they exhaust assets to the point of selling bsuiness and printing so much paper at a multiple of declining cash.
So what’s a last ditch advertising effort relative to the bigger picture. Can’t hurt, or can it, or is this the very dilema of it all in this saga with so much more to come ? =)
Ryan
Since this deal is another decision made by Nortel that suggests to me they enjoy throwing money away as if they have it, I suggest they divide up these pointless expenses they are incurring and instead of making less-than-intelligent deals, give some money to the shareholders who have seen their investment decline. Oh thats right, they have a plan for the stock—a reverse stock split!!! Because we all know how successful those have been in the past!?!?! With choices like these, its beginning to seem obvious that this current board will be shuffled around quite extensively once the shareholders have an opportunity to vote on it once again.
McCann Wins Nortel Ad Account
According to AdWeek, Nortel has awarded its global advertising accounting to McCann Worldgroup following a review. Dallas-based The Richards Group had previously handled Nortel. Rob Bagot and John McNeil, both executive creative directors at McCann in San Francisco, will oversee creative development on a campaign scheduled to be launched in the first quarter. The contract is estimated to be worth $40-million to $45-million, and will include digital, online and traditional advertising.