Quote of the Week

By Mark Evans | Published: March 21, 2008

Nortel’s insistence that a turnaround is imminent doesn’t seem to be registering anymore with some analysts.

“No one listens to them,” said analyst Deutsche Bank analyst Brian Modoff told the News & Observer. “When you lack credibility, there’s a significant discount that’s applied to everything you say and do.”

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  • Observer

    Wow. That's pretty harsh. Its telling you almost all investors believe Nortel management is out of touch with reality. I imagine panic is setting in now at the company with the coming real estate site closure(s). Anyone know which sites are on the chopping block ?

  • NewBlue

    No, it's telling you that all of the Nortel PR generated by management is being dismissed by the analysts as spin. It's a credibility issue.

    And harsh though it may be, it's also chickens coming home to roost. You can only talk so much bluster before someone finally figures it out and calls you on it.

  • purple

    Obviously the analysts don't know of the new strategic effort to save even more costs by reducing garbage collection in the offices to 1/week from 2 per week.

  • OccasionalChecker

    Folks,
    I am being serious about getting NT long. This stock from this level represents ATLEAST a 100% of gains within a year. Because in my view this is the bottom. We are at 0.27 on P/S ration and management is focused and getting some results on cutting costs.
    The biggest “tell” is when all analysts are downgrading and even good things coming out of management are taken as bad things.

    -OccassionalChecker (an ex-Nortel employee)

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  • NewBlue

    Don't bogart that joint, my friend…

  • former NT

    OccasionalChecker

    This isn't the bottom yet my friend. The bankruptcy vultures are circling. If (or when ) Nortel files for bankruptcy that is when it will hit rock bottom.

  • sad sad day for nortel

    The folks at nortel are being ripped apart from with-in, the legacy folks that are still running much of the company at a lower level have not been able to learn how to manage a smaller company. It take months for them for figure things out, they need to let go of those old farts!! and start fresh with some executive new grads!!

  • anonymous

    //We are at 0.27 on P/S ration and management is focused and getting some results on cutting costs.//

    Is that “P” net debt adjusted?

  • oneor34kleft

    sad sad day, i take issue of the old lower level people not knowing how to run a smaller company.. who do you think ran this compnay before it grew in the 90's?? lower level management up 2 levels from the troops are the ones that know how to run the company and to make things work. it's the disconnect of the vp and associates that are screwing things up.. processes have been broken for over a year and they still can not it fixed, but yet they get a bonus.. 6 sygma, blackbelts, greenbelts, ownit, 4c's, buzz words with no measureable results.. over two years and there are still color belts in training??? histroy has it that any company that addopted 6 sygma has gone down in value..
    the directors are just the wihpping boys of the vp's and staff and are following directives to save their jobs. those that have left are the smart ones and wouldn't prostisize themselves.
    the BOD has been taken hostage. NT has some debt comming due soon and we will see how much it costs them to borrow.. anymore sale of property would definetly be a strong indicator of the upcomming demise.

  • IamCanadian

    oneof34kleft, 100% agreed with you on the disconnect between the working level and those in the ivory tower. The CEO Mike Z. gives his subordinates 3 months to 2 quaters to show the results or walk the plank. M.Z himself has given 3-5 years to turn company around and yet half way thru, delivers nothing and you know the rest…

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