Boy, oh, boy, investors did not like Nortel’s fourth-quarter results and/or outlook for 2008.
The stock is down $1.43, or 13%, to $9.98 after hitting an intra-day low of $9.67. Taking into account the 1:10 stock consolidation, Nortel is trading at 98 cents, and now sports a market capitalization of $4.3-billion.
Here’s a table of where analysts think the stock is heading (which could be updated in the wake of the results):
Where's Scotia Capital ($31 target), Gus Papageorgiou, 416-863-7552 and TD Newcrest ($28 target), Chris Umiastowski, 416-983-3599 now ??
Somebody who can talk the “Nortel and sector tech language” call these guys and report back please. Thank you !
I should of gone to Las Vegas !!
Nortel watcher
Novice Investor,
You missed a great party in Vegas for Nortel's salesforce for the Americas. That was some tab that the executive leadership stuck the shareholders with. Then again, mgmt needed to find a way to boost morale in a year with fewer equipment deals going around….except for those local schools that Nortel has been doing press releases on lately to showcase their order closing prowess.
Novice Investor
I'm HUNG at $22.00 per share and “MEAN” Target of $21.08 per share takes on a new investor meaning !!
Canary in a Coalmine
Did anyone hear about Sales comp being “higher than expected”? So is NT now paying Sales teams bonuses for missing their targets???!!!!!
Johnny Aerotek
So, brass let the sausage hang out in Vegas leveraging all manner of synergies, eh?
Meanwhile their cube dwelling underlings empty theirs in Own It! inspired, darkened lavatories, to save money on the light bill, effectively supporting the Inevitable Turnaround.
Sigh.
Casual Observer
At this point its all just a morale play at Nortel. Maybe its time to empty the coffers before shareholders ask for cash.
Nortelhand
The price reflects the realities at Nortel. What does Nortel have to sell that will strongly drive earnings? Nothing! What makes Nortel the company of choice for clients? Cost; and Z is working on that by reducing overhead and talent.
Blaming the sales force is not the right thing to do, but it is easy to measure the success or failure. No matter what is being said by Z, perspective clients are looking at Nortel and wondering if this product, service, Nortel, etc… will be around in 1, 2…5 years and beyond. The recent shock in stock price will do nothing to help this perceived idea. Remember, no one gets fired (clients) for buying top tier equipment, it is easy to justify no matter what the cost and it is the safe thing to do.
It will not be a happy year(s) at Nortel for employees or investors.
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Nortel Now a Penny Stock
Boy, oh, boy, investors did not like Nortel’s fourth-quarter results and/or outlook for 2008.
The stock is down $1.43, or 13%, to $9.98 after hitting an intra-day low of $9.67. Taking into account the 1:10 stock consolidation, Nortel is trading at 98 cents, and now sports a market capitalization of $4.3-billion.
Here’s a table of where analysts think the stock is heading (which could be updated in the wake of the results):
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