Roese Explains Wheeling and Dealing

Chinese word for trouble is “two women under the same roof”, which also applies to strategists. Nortel has three strategists under the same roof. As the saying in the old ‘hood goes – nothing left but the crying…--bb

BroadbandBill,
You seem to be some kind of an insider of the Telecom world. What is your longterm assessment of NT's stock? Do you think that NT stock will recover some in 2010?? Or you think that the hole this management team has dug is just too deep to get out of ??

Cool John,

But why can’t Nortel deliver consistant earnings? The last Q was so bad. Over the last year Nortel has driven analysts from buy to hold and sell, and these were the guys that supported Nortel. What is going on? Why can’t Nortel get it’s act together and show progress Q after Q? OK it is a turn around, but that is no excuse for such capital distruction. People want answers, analysts want answers but not much is coming from the people in charge (you, Mike, etc…).

August 22nd, 2008 at 1:39 pm by Nortelhand

In the tech sector there are only three types of deals:

1. Top Dogs -- $250M - $500M+ -- most of these are pretty close to the IPO phase.
2. Loyal Dogs -- $100M - $250M -- second movers ready to step in to take #1 rank.
3. Dogs with Fleas – Anything less than $50M – the domain of bottom dwellers.

However, let’s give credit where credit’s due. After a disastrous adventure into that ‘future promise called 4G’ it is obvious that JR has convinced his boss that enterprise is where Nortel needs to make its stand thus the three enterprise-centirc acquisitions. I will not hammer on their collective value (perhaps JR can make it work) but it does show a MAJOR chink in Nortel’s armor; JR is only familiar with 23% of Nortel’s revenue base (Enterprise). In other words, JR has NO CLUE whereas the rest of Nortel’s revenue base is concerned (Carrier Networks, Global Services, Metro Ethernet Networks and Other) a combined 67% of total revenues as reported in Q202.

Just imagine that, being part of a company where you are CLUELES about 67% of its revenue base. Perhaps I could apply for a CFO at GE (funnier than I can ever explain). It’s not just the blind; rather it is the ‘blind-deaf-and-dumb’ leading the blind. Is the BoD looking at its ‘fiduciary responsibility’ clauses? Didn’t think so…--bb

To their credit, these acquisitions are true to the NT motto "Simplicity trumps complexity"

M&A gets you T&A for receiving-end S&M PDQ.

M&A machine? In relation to what? A shareware PBX and a 12 person company? I thought they were supposed to be looking for new markets? Pingtel is so "me to" and has been beaten by Asterisk, Fonality and others. M&A machine...please have some respect for those that have made acquisitions a science. Please.