Where’s the Media Coverage?

Mark, while Nortel “fatigue” may be a factor, I think most analysts are simply waiting for official word about the new direction of the company. Let's face it, most analyst views on Nortel have been wrong in past years, and when you toss in the rather unpredictable world market conditions right now, it's just a big coin flip when these folks make predictions. I think maybe they're more worried about being wrong again, and would just prefer to digest whatever the next restructuring looks like.

I'd probably go at the story from two perspectives:

1. What are the prospects for the new strategic direction? Will a small, more focused Nortel be more competitive and profitable? Who would its competitors be, and how big is the market opportunity?

2. A look at Mike Z. How well has he done over the past three years? What has he done right; what has he done wrong? What does he need to do going forward to get Nortel back on the right track. Given Nortel's troubles in recent years, Mike Z. has arguably not been scrutinized too much so if would offer some perspective on whether he's done or a good or bad job.

Sure that Nortel is deadly wounded but not dead yet.
3 bill in assets is a lot of money. Nortel can use it for suing professional analysts. We on this blog post mostly for the entertainment. We are not bond by any requirement.
We feel the freedom to speculate in any direction.
by saying that I proud myself not to cross the line.
example
after Q2 CC I estimated by just simple math calculations that Nortel has to do more job cuts. As I remember I estimated 4000 new job cuts. Let me correct that number today. Knowing more about that I estimate today that Nortel needs to cut 6500 asap plus the MEN div should go. (I guess the total would be around 8500)
So yes, Mark. You are just perfectly right that media don't talk about Nortel. Why?
Why public does not dig into Nortel's cash or NT stock shareprice?
Why CEO is so delusional that he predicted $20 was a gift! Why he could not predict declining revenues for 2008 or new job cuts coming? What he is able to do? What he is good for? It's a public company! NT stock lost its qualities looong time ago. I don/t even care about NT stock anymore. last $500 mill would drop in a week or 2.
Someone will lose that, all $500 mill market cap we see today!
What if it is just an average Joe who will lose?
How Mike Z can increase shareholder value for Joe?

I think most view it like the bush presidency; tragic but over.

Thanks for directing your readers to the column, Mark. Your comment re. fatigue is accurate. Everyone is waiting for real news as of the Nov. financial release, if not sooner. And on balance with all the other very bad business news out there, Nortel's long-running tale of woe seems like an old story.

emmgee,

Great comment – insightful, honest and insightful.

Thanks for swinging by!

Mark

Excuse me? Anyone who understood the markets that Nortel plays in could have played the hand far differently. That person wouldn't have hired other cabinet members who didn't understand Nortel's business and that person would have managed a much better balance between efficiency and growth.

Mike Z has floundered for 3 years because he's like a cab driver with the windshield painted black, He doesn't know where he's going.

I have to disagree slightly with your synopsis.
This is North America. Canada lives beside the most powerful nation on the face of the earth. Look at America. The government gives a trillion dollar buyout and now a secondary package is coming for people who can't pay their mortgage, in one form or another, there is help coming to them. After the huge government bailout the american dollar goes through the roof. Its like all the americans have to do is print money when they want and nobody..not even chairman mao..will call them in on their debt. Here we have Canada, chock full of natural wealth, with its crown jewel called Nortel. North America should just give the middle finger to chairman mao and the rest of the world. We print how much money we want, and we take care of ourselves first. Mike and the BOD are asleep at the switch.
You are right on one thing, they have no choice but to be a smaller player now of less than 5k without immediate intervention by the government due to what has already transpired under consecutive CEO's the BOD and lack of interest/sympathy from the canadian government.
I think you are going to see revolts from the common people of North America sick and tired of losing their jobs and sick and tired of dumb ass executives and wall street making mindless decisions so they can line their pockets with more cash. The election of obama is the beginning of the “fighting back” from North Americans.
If harper gets his way he will also watch out for the people of Canada first, not countries abroad. This is the way it should be.
We need nationalism back in North America before undesireables beat us down more.
Mark it.
Take that to the bank.

Double insightful

Mark, you should put together an article on this, (if you have time) if not on your blog then for another site, I've seen some of your articles elsewhere.

Roese is in empire building mode. anyone, is this true?

Zeroman has zero strategic view and he pushed away the “old” Nortel guys that were giving him advice to where to take the company forward, instead he relied on people whose experience were building washing machines and light bulbs. That is why Nortel failed to make any significant acquisitions in 3 years or even divest business. The UMTS sell and the Router company acquisition done during the first 12 months were decisions taken by the previous administration, who he delayed for 8 months once on board. The failed acquisition of 3Com, Avaya and Siemens Ent are also a demonstration of inability to make a strategic decision to bulk up the enterprise business t compensate the downsize of the CDMA business which was the cash fuel of the firm.

While all this was happening, the cost cutting measures of sending people overseas have resulted in a disaster, it might have lowered the costs but the quality and customer satisfaction went to the floor.

Six Sigma was brought as the miracle pill, an antidote that would cure everything, but on the contrary it had delayed key critical decisions that had to be made, as well as developed so many black belts who are working on silly projects with meaningless contributions. It killed the creativity of the company, the innovation engine.

It is a very sad story that in less than 8 months will be forgotten or probably recalled in some business books as a lesson learn of Don'ts.

Why do we have to believe that the key decisions made or to be made in the past 30 days / next 30 days will dramatically change the fate of the company when having 36 months all the decisions take took this company to this actual situation, plus what aggravates it more is that to believe that the same leadership team will make the miracle happen?

Unfortunately NT is brain dead and the clock started ticking tic-toc-tic-toc… only 180 days of life remaining.

Nortel is reorganizing itself into “bite size pieces” at this time. It is grouping each business with related functions like R&D, product management, sales, marketing, accounting. This will allow other companies to buy businesses individually. In doing this, many people will be shown the door. Nortel as we knew it is history.

Roese is a pompous moron who has never done anything but talk. Unfortunately Mike Z actually listens to him because he tells him what he wants to hear. ie. We can be number 1 in LTE and Wimax.

And it makes me wonder, too – is it better for me to be on the list of pink slips, or is it better for me that I stay here?