Comments on: Nortel Talking to Siemens? http://www.allaboutnortel.com/2008/02/15/nortel-talking-to-siemens/ All the News about Nortel Networks Thu, 09 Sep 2010 02:59:25 +0000 hourly 1 By: Onlooker http://www.allaboutnortel.com/2008/02/15/nortel-talking-to-siemens/comment-page-1/#comment-30779 Onlooker Thu, 21 Feb 2008 01:28:40 +0000 http://www.allaboutnortel.com/2008/02/15/nortel-talking-to-siemens/#comment-30779 <a href="http://blogs.wsj.com/deals/2008/02/19/when-cash-isnt-really-cash/" rel="nofollow">http://blogs.wsj.com/deals/2008/02/19/when-cash...</a> http://blogs.wsj.com/deals/2008/02/19/when-cash...

]]> By: Onlooker http://www.allaboutnortel.com/2008/02/15/nortel-talking-to-siemens/comment-page-1/#comment-30778 Onlooker Thu, 21 Feb 2008 01:28:15 +0000 http://www.allaboutnortel.com/2008/02/15/nortel-talking-to-siemens/#comment-30778 Check this out from the WSJ...A blurb about Nortel<br><br>February 19, 2008, 1:32 pm<br>From Texas Instruments to Motorola: When Cash Isn’t Really Cash<br>Posted by Heidi Moore<br><br>Deal Journal saw “Macbeth” this weekend and, somehow, when the three witches chanted “what’s fair is foul and what’s foul is fair,” it was easy to see parallels to the upside-down world of the credit crunch, where nothing is what it seems anymore. <br><br>Thus, we weren’t entirely surprised when we saw the latest tocsin that something wicked may this way come: in this case, a Merrill Lynch report on how technology companies that look secure because of the cash on their balance sheets may actually be depending on some debt securities that they may have to write down later.<br><br>According to the investment bank’s technology team, the companies with the most exposure include Foundry Networks, Texas Instruments and Photon Dynamics, who respectively have have 68%, 62%, and 54% of the “cash” portion of their balance sheets tied up in now-risky debt such as auction-rate securities and asset backed- and mortgage-rate securities. Those debt instruments looked like “cash equivalents” as recently as last year. Now: not so much. <br><br>Other big names may be at danger because tomorrow (and tomorrow, and tomorrow) they still will be drawing a big chunk of their income from the interest on those securities. Alcatel-Lucent, IDT, Nortel and Motorola all draw more than half of their pretax income from the interest-payments on that debt. Check this out from the WSJ…A blurb about Nortel

February 19, 2008, 1:32 pm
From Texas Instruments to Motorola: When Cash Isn’t Really Cash
Posted by Heidi Moore

Deal Journal saw “Macbeth” this weekend and, somehow, when the three witches chanted “what’s fair is foul and what’s foul is fair,” it was easy to see parallels to the upside-down world of the credit crunch, where nothing is what it seems anymore.

Thus, we weren’t entirely surprised when we saw the latest tocsin that something wicked may this way come: in this case, a Merrill Lynch report on how technology companies that look secure because of the cash on their balance sheets may actually be depending on some debt securities that they may have to write down later.

According to the investment bank’s technology team, the companies with the most exposure include Foundry Networks, Texas Instruments and Photon Dynamics, who respectively have have 68%, 62%, and 54% of the “cash” portion of their balance sheets tied up in now-risky debt such as auction-rate securities and asset backed- and mortgage-rate securities. Those debt instruments looked like “cash equivalents” as recently as last year. Now: not so much.

Other big names may be at danger because tomorrow (and tomorrow, and tomorrow) they still will be drawing a big chunk of their income from the interest on those securities. Alcatel-Lucent, IDT, Nortel and Motorola all draw more than half of their pretax income from the interest-payments on that debt.

]]> By: Onlooker http://www.allaboutnortel.com/2008/02/15/nortel-talking-to-siemens/comment-page-1/#comment-4117 Onlooker Wed, 20 Feb 2008 20:28:40 +0000 http://www.allaboutnortel.com/2008/02/15/nortel-talking-to-siemens/#comment-4117 <a href="http://blogs.wsj.com/deals/2008/02/19/when-cash-isnt-really-cash/" rel="nofollow">http://blogs.wsj.com/deals/2008/02/19/when-cash...</a> http://blogs.wsj.com/deals/2008/02/19/when-cash...

]]> By: Onlooker http://www.allaboutnortel.com/2008/02/15/nortel-talking-to-siemens/comment-page-1/#comment-4116 Onlooker Wed, 20 Feb 2008 20:28:15 +0000 http://www.allaboutnortel.com/2008/02/15/nortel-talking-to-siemens/#comment-4116 Check this out from the WSJ...A blurb about Nortel<br><br>February 19, 2008, 1:32 pm<br>From Texas Instruments to Motorola: When Cash Isn’t Really Cash<br>Posted by Heidi Moore<br><br>Deal Journal saw “Macbeth” this weekend and, somehow, when the three witches chanted “what’s fair is foul and what’s foul is fair,” it was easy to see parallels to the upside-down world of the credit crunch, where nothing is what it seems anymore. <br><br>Thus, we weren’t entirely surprised when we saw the latest tocsin that something wicked may this way come: in this case, a Merrill Lynch report on how technology companies that look secure because of the cash on their balance sheets may actually be depending on some debt securities that they may have to write down later.<br><br>According to the investment bank’s technology team, the companies with the most exposure include Foundry Networks, Texas Instruments and Photon Dynamics, who respectively have have 68%, 62%, and 54% of the “cash” portion of their balance sheets tied up in now-risky debt such as auction-rate securities and asset backed- and mortgage-rate securities. Those debt instruments looked like “cash equivalents” as recently as last year. Now: not so much. <br><br>Other big names may be at danger because tomorrow (and tomorrow, and tomorrow) they still will be drawing a big chunk of their income from the interest on those securities. Alcatel-Lucent, IDT, Nortel and Motorola all draw more than half of their pretax income from the interest-payments on that debt. Check this out from the WSJ…A blurb about Nortel

February 19, 2008, 1:32 pm
From Texas Instruments to Motorola: When Cash Isn’t Really Cash
Posted by Heidi Moore

Deal Journal saw “Macbeth” this weekend and, somehow, when the three witches chanted “what’s fair is foul and what’s foul is fair,” it was easy to see parallels to the upside-down world of the credit crunch, where nothing is what it seems anymore.

Thus, we weren’t entirely surprised when we saw the latest tocsin that something wicked may this way come: in this case, a Merrill Lynch report on how technology companies that look secure because of the cash on their balance sheets may actually be depending on some debt securities that they may have to write down later.

According to the investment bank’s technology team, the companies with the most exposure include Foundry Networks, Texas Instruments and Photon Dynamics, who respectively have have 68%, 62%, and 54% of the “cash” portion of their balance sheets tied up in now-risky debt such as auction-rate securities and asset backed- and mortgage-rate securities. Those debt instruments looked like “cash equivalents” as recently as last year. Now: not so much.

Other big names may be at danger because tomorrow (and tomorrow, and tomorrow) they still will be drawing a big chunk of their income from the interest on those securities. Alcatel-Lucent, IDT, Nortel and Motorola all draw more than half of their pretax income from the interest-payments on that debt.

]]> By: Saco http://www.allaboutnortel.com/2008/02/15/nortel-talking-to-siemens/comment-page-1/#comment-4135 Saco Wed, 20 Feb 2008 13:55:23 +0000 http://www.allaboutnortel.com/2008/02/15/nortel-talking-to-siemens/#comment-4135 Realist, I believe the ratio 1:5 is good and even pessimist as soon as you don't stay near the coast (ie city such as Shenzhen, Shanghai, etc). If Nokia, Siemens and other have now their manufacturing premise far from the coast, it's not an accident... <br><br>... but true that NN use to select the 1:2 area :) Realist, I believe the ratio 1:5 is good and even pessimist as soon as you don't stay near the coast (ie city such as Shenzhen, Shanghai, etc). If Nokia, Siemens and other have now their manufacturing premise far from the coast, it's not an accident…

… but true that NN use to select the 1:2 area :)

]]> By: CaoNiMa http://www.allaboutnortel.com/2008/02/15/nortel-talking-to-siemens/comment-page-1/#comment-4118 CaoNiMa Wed, 20 Feb 2008 08:19:00 +0000 http://www.allaboutnortel.com/2008/02/15/nortel-talking-to-siemens/#comment-4118 With respect to cost two chinese engineers are the same as one in North America? <br><br>This is just an account trick on which Nortel has many experiences... With respect to cost two chinese engineers are the same as one in North America?

This is just an account trick on which Nortel has many experiences…

]]> By: timmy http://www.allaboutnortel.com/2008/02/15/nortel-talking-to-siemens/comment-page-1/#comment-4119 timmy Wed, 20 Feb 2008 02:56:48 +0000 http://www.allaboutnortel.com/2008/02/15/nortel-talking-to-siemens/#comment-4119 OMG. The number of "personal copies" of simulation code I saw walking out the front door at Nortel? Incredible. Out of political correctness I won't state a specific ethnic group, but it's not like everyone knows. Same thing another company I knew. It's cultural. Corporate and ethnic.<br><br>This is a level of theft that would earn prison terms in any other business context. Telecom is a looking glass world. OMG. The number of “personal copies” of simulation code I saw walking out the front door at Nortel? Incredible. Out of political correctness I won't state a specific ethnic group, but it's not like everyone knows. Same thing another company I knew. It's cultural. Corporate and ethnic.

This is a level of theft that would earn prison terms in any other business context. Telecom is a looking glass world.

]]> By: Realist http://www.allaboutnortel.com/2008/02/15/nortel-talking-to-siemens/comment-page-1/#comment-4134 Realist Wed, 20 Feb 2008 02:13:59 +0000 http://www.allaboutnortel.com/2008/02/15/nortel-talking-to-siemens/#comment-4134 Your numbers are wrong Laos.<br>With respect to cost two chinese engineers are the same as one in North America<br>and that gap is closing steadily. I think today it is even less than 2:1.<br>And what do you get from those two engineers working in China?<br>Here is what you get..<br>The reality that they will bolt the minute they get more money, usually going<br>to WahWay where they can hand over technology they stole from the place<br>they just left.<br>As I said today it really isn't saving big tech companies to do business in China<br>with all the negatives assoiciated with doing business over there.<br>The big execs will learn...sooner than later...pity is they are too dumb and greedy<br>to have any foresight or they wouldn't have made the mistakes they have made<br>and continue to make. Your numbers are wrong Laos.
With respect to cost two chinese engineers are the same as one in North America
and that gap is closing steadily. I think today it is even less than 2:1.
And what do you get from those two engineers working in China?
Here is what you get..
The reality that they will bolt the minute they get more money, usually going
to WahWay where they can hand over technology they stole from the place
they just left.
As I said today it really isn't saving big tech companies to do business in China
with all the negatives assoiciated with doing business over there.
The big execs will learn…sooner than later…pity is they are too dumb and greedy
to have any foresight or they wouldn't have made the mistakes they have made
and continue to make.

]]> By: many http://www.allaboutnortel.com/2008/02/15/nortel-talking-to-siemens/comment-page-1/#comment-4142 many Tue, 19 Feb 2008 18:26:17 +0000 http://www.allaboutnortel.com/2008/02/15/nortel-talking-to-siemens/#comment-4142 NW, Have you read "who moved my soap"? I particularly like the chapter "bringing six-sigma to sing sing" :) NW, Have you read “who moved my soap”? I particularly like the chapter “bringing six-sigma to sing sing” :)

]]> By: Name *nortel watcher http://www.allaboutnortel.com/2008/02/15/nortel-talking-to-siemens/comment-page-1/#comment-4141 Name *nortel watcher Tue, 19 Feb 2008 16:21:38 +0000 http://www.allaboutnortel.com/2008/02/15/nortel-talking-to-siemens/#comment-4141 Obviously a fan of "Our Iceberg is Melting" Since the "Hackmen" keep throwing the "Fred's" off the boat before they can tell the paying customers the truth......the iceberg will indeed break apart and be sold for penny stock ........afterall...... most of the quarterly sellers have already cashed in. Obviously a fan of “Our Iceberg is Melting” Since the “Hackmen” keep throwing the “Fred's” off the boat before they can tell the paying customers the truth……the iceberg will indeed break apart and be sold for penny stock ……..afterall…… most of the quarterly sellers have already cashed in.

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