It seems like yesterday when analysts – at least, a few of them – were getting all giddy about Nortel. Now, everyone appears to be jumping on the bandwagon as it heads downhill.
R.W. Baird lowered its 2008 estimates to earnings of 66 cents/ share on revenues of $11.2 billion, compared with $1.65 on $11.4 billion for 2008, while Credit Suisse First Boston lowered its outlook to 37 cents on revenue $11.28 billion from $1.08 and $11.48 billion. CSFB also dropped its price target to $8 from $18.
There isn't enough downside for Nortel to withstand the shock the global economy is about to go through. Today was the next leg down in the credit crisis with no end in sight.
Keith
I'm strongly considering "throwing in the towel" on my NT shares as my loss is now over 50% as of today. The big question I am trying to figure out is ... "where is the bottom?" It hit a low of 7.18 so far today. If it goes below 6.70 in the future, then it will "beat the bottom" it set years ago when it hit 67 cents (pre-consolidation).
With CSFB's target now down to only $8, makes me wonder how much lower it will go in the next few months ... before turning back up ... if it does in fact go back up.
The article on March 4 in the Financial Post (blog) by Hugh Anderson called "Nortel's story may not have happy ending - Beware Of Bargains" does not bode well. http://www.financialpost.com/reports/advisor/st...
Any comments or forecasts about where the bottom on NT's share price will be and/or when or if the share price will turn around? I'd much rather hang on if I think the shares are going back up, but now question if / when that will actually happen.
Keith
bummer
who isn't down on nortel these days? :(
Nortel watcher
Sounds like the analysts are admitting what has been known for some time now and even discussed/warned about on the Yahoo board by the likes of proto, jamezz, yappy etc in that Nortel revenues are going to take a major hit as CDMA business winds down to a shadow of what it once resembled.
Nortelhand
Lets face it, Nortel has not been showing analysts or anyone else that they can do what they say. What happens to companies with big debt that can’t seem to generate increasing margins to reduce the debt and grow the business? They sell them off. Nortel is getting what it is sowing.
Analysts Down on NT
It seems like yesterday when analysts – at least, a few of them – were getting all giddy about Nortel. Now, everyone appears to be jumping on the bandwagon as it heads downhill.
R.W. Baird lowered its 2008 estimates to earnings of 66 cents/ share on revenues of $11.2 billion, compared with $1.65 on $11.4 billion for 2008, while Credit Suisse First Boston lowered its outlook to 37 cents on revenue $11.28 billion from $1.08 and $11.48 billion. CSFB also dropped its price target to $8 from $18.
Source: RCR Wireless News