Good Week for NT

By Mark Evans | Published: April 4, 2008

After hitting a series of record lows recently, NT has bounced back. This week the stock climbed to $7.85 from $6.42, or 22%.

Technorati Tags:

[Slashdot] [Digg] [Reddit] [del.icio.us] [Facebook] [Technorati] [Google] [StumbleUpon]
This entry was posted in Stock. Bookmark the permalink. Post a comment or leave a trackback: Trackback URL.
  • DrSteve

    perhaps your previous post had something to do with this ;)

  • Novice Investor

    For Novice Investor only $14.00 per share to go …. @ 22% per week …. 6 weeks to break even …. LOL

  • Jerry30678

    This is for the people that read ANN. It appears that her facts are incorrect on Nortel Debt.

    This is from the Dec.31,2007 Form 10K. What part of this don’t I understand?

    Our high level of debt could materially and adversely affect our business, results of operations, financial condition and liquidity. In order to finance our business, we have incurred significant levels of debt.

    As of December 31, 2007, we had approximately $4.5 billion of debt. In the future, we may need to obtain additional sources of funding, which may include
    debt or convertible debt financing. A high level of debt, arduous or restrictive terms and conditions related to accessing certain sources of funding, or any significant reduction in, or access to, the EDC Support Facility, could place us at a competitive disadvantage compared to competitors that have less debt and could materially and adversely affect our ability to fund the operations of our business; borrow money in the future or access other sources of funding; refinance our existing debt, should we decide to do so; pay interest, or judgments, settlements, fines or other penalties; and maintain our flexibility in planning for or reacting to economic downturns, adverse industry conditions and adverse developments in our business, and our ability to withstand such events.

  • Jerry30678

    The stock is down again today on a downgrade. What does that tell you about the recent buy by the CEO and Directors? Looks like false hope to me.

    How long can Nortel survive numbers like this?

    Financial Strength
    Financial Strength Rating MEDIUM-LOW
    Debt/Capital Ratio 55.7%
    Return on Equity 8.7%
    Net Margin -8.7%
    Payout Ratio –
    Current Ratio 1.35
    Revenue $10.95 Billion
    After-Tax Income -$957.00 Million
    Valuation
    Current FY P/E 14.27
    Prior FY P/E 19.15
    Price/Sales 0.31
    Price/Book 1.24
    Book Value/Share $6.31
    Market Capitalization $3.40 Billion

    A measurement of a company's financial leverage, calculated as the company's debt divided by its total capital. Debt includes all short-term and long-term obligations. Total capital includes the company's debt and shareholders' equity, which includes common stock, preferred stock, minority interest and net debt.

    Companies can finance their operations through either debt or equity. The debt-to-capital ratio gives users an idea of a company's financial structure, or how it is financing its operations, along with some insight into its financial strength. The higher the debt-to-capital ratio, the more debt the company has compared to its equity. This tells investors whether a company is more prone to using debt financing or equity financing. A company with high debt-to-capital ratios, compared to a general or industry average, may show weak financial strength because the cost of these debts may weigh on the company and increase its default risk.

  • http://www.techwinter.com Roger Kondrat

    I have held the NT stock for about 5 years now bought it at about 3-4$ per share, I believe after all the changes it is worth about 1/10th the stock price we see today. It will be a long time before I ever get my money back.

    That being said I always struggled to understand why Nortel could not get the ship right after they brought in that ex-Navy guy 2-3 years ago. I kept thinking okay, now they will get rockin and rolling but even though they had leadership in some areas such as wireless at the time they just could not execute……

    A company that just seems to find a way to struggle even when they have all the tools to succeed.

    Huh..

  • Gimmee a Break

    So Roger, you think Nortel is a $300 million company vs. $3 billion, yet their revenue is more than $10 billion. Since the stock is already at 1/5th what you paid for it, you think it should be 1/50th? Glutton for punishment or what? Do you work for Cisco?

  • http://www.techwinter.com Roger Kondrat

    I am sorry Gimmee a Break but I have no idea what you are talking about… Maybe you can clarify for me by restating your comment?

  • Gimmee a Break

    You said the stock is worth 1/10th what is today. Current market cap is about $3 billion, so you mean it's worth $300 million. You bought at $3-$4, 5 years ago…pre 1 to 10 reverse split….so you actually paid $30-$40 at today's stock.

  • http://www.techwinter.com Roger Kondrat

    See I totally agree with your last comment.

    I think it is your assumptions of what I said in my initial comment and your initial reply to that comment that I was and still am baffled with to some extent.

    I don't presume to have any expectations or knowledge of current cap valuations and I do not believe I alluded to that in my first comment. So your initial comment starting with 'you think' is presumptuous and indeed is a totally incorrect assertion as to what I was or was not thinking.

    But yes it is fair to say that since I have never purchased more stock to bring down my average and just hold it out of stubborness that I am probably a glutton for punishment.

    PS. I do not work for Cisco.. Common sense really as you could have figured it out just looking at my profile for a few minutes. ;)

  • Gimmee a Break

    Hi Roger, I was just doing the arithmetic for you based on your 1/10th comment. Market cap = Share price X Number of outstanding shares. All I can tell from your profile is that you're from London. I'm in at about $20/share ($2/share pre reverse split)…so I'm in a little better shape than you. It would be jolly good if the share price rose to $30 or $40 and then it would have a market cap of more that $10 billion…as it should.

  • puddintane

    If I still worked there I'd be throwing out my boring pencils and stale erasers and putting on the well-deserved, long-overdue ritz by diverting a few Nortel quid on flashy gimmicks.

    Anyone remember fatbrain?

  • puddintane

    If I still worked there I'd be throwing out my boring pencils and stale erasers and putting on the well-deserved, long-overdue ritz by diverting a few Nortel quid on flashy gimmicks.

    Anyone remember fatbrain?

  • TwitterCounter for @markevans
  • Seeking Alpha Certified