What’s Happening With NT

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By Mark Evans | January 11, 2008

So, what’s happening with Nortel shares this week?

The stock has dropped from $14.78 to a 52-week low of $12.09 ($1.20 taking into account the 10:1 stock consolidation) before starting trading today at $12.51. There has also been heavy trading volume.

Is the decline related to concerns about the health of the North American economy? Are there signs that carriers are changing and/or pulling back on spending? Or is it that people have grown impatient with Nortel’s turnaround strategy?

Amid the stock’s decline, it has been interesting to see two diametrically opposed analyst reports come out this week: Scotia Capital’s Gus Papageorgiou is ultra-bullish with a $30 target price, while RBC Capital’s Mark Sue is far more cautious and dropped his target price to $16 from $18.

Any thoughts on NT’s decline?

Here’s a Google chart showing NT’s performance this week.