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Waiting on NT’s Turnaround
By Mark Evans | December 21, 2007
Looks like 24/7 Wall St. is losing patience with the pace of Nortel’s turnaround efforts.
Nortel “still has a $6 Billion market cap, has somewhere around 33,000 employees (down from over 90,000 workers in the tech bubble), and it still has major strategic partnerships on every continent. It offers close to a full service product and services portfolio. It also has a fairly young management team for a telecom and networking equipment giant. But it has one crummy stock. Recent layoffs are not really able to be enough to make a dent and you wonder just how many plant consolidations can realistically occur. Its balance sheet doesn’t look truly inverted, but the way we analyze liquidity it is far from pretty and far from being in a safe breathing room.”