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Where’s the Beef, Mike?
By Mark Evans | September 5, 2007
It’s been pretty quiet on the Nortel front over the past week. Maybe all the senior executives have been engaged in getting their children back to school. Or perhaps the pursuit of Tellabs is more than speculation!
In any event, it’s a good opportunity to look at how Nortel’s stock has performed since Mike Zafirovski was hired as CEO in mid-October, 2005. Unfortunately, there’s no good news as the stock as dropped from $34 ($3.40 before the 10 to 1 stock consolidation) to $17.63 - ust above the 52-week low of $17.22.
In comparison, Cisco shares have nearly doubled to $32 from $17.03 during the same period of time, while Alcatel-Lucent has dropped to $7.86 from $10.40.
Nortel’s market capitalization has now dropped to $7.7-billion, which could make it a more attractive takeover target, particularly if Zafirovski’s cost-cutting strategy begins to produce dividends.
Topics: Stock |