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Nortel’s Biggest Issue: Its Prospects
By Mark Evans | February 28, 2008
For all the work that CEO Mike Zafirovski and his overhauled management team has done over the past 2+ years, Nortel seems no closer to being revitalized.
The stock’s decline to below $10, or $1 when a 1:10 stock consolidation is accounted for, has everything to do with investors growing belief that Nortel’s prospects are, at best, mediocre. When the New York Times’ coverage of your fourth-quarter results is focused on a dim look of what’s head, it can’t be a good sign.
The question investors have to ask themselves if they are willing to jump into the fray is what one thing will drive Nortel back to respectability. Is there a technology, a product or a trend that will jump-start Nortel’s sales? Sadly, none seems to exists.
If 2007 - as Mike Z. - said was a crucial year for Nortel, then it could be argued 2008 is one fraught with urgency. Do not be surprised if Nortel’s status as a standalone company ceases to exist.
Update: Among the “other” answers to the poll below, Metro Ethernet was the most common idea mentioned.
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