NT Soars 32%

By Mark Evans | Published: November 13, 2008

Go figure, Nortel shares (NT:NYSE) jumped 32%, or 19 cents, yesterday to 78 cents amid news that RBC Capital Markets analyst Mark Sue had slashed his target price to zero.

Perhaps it was the news that Verizon Business had selected Nortel to help deliver a new managed telepresence offering that lets organizations collaborate over IP networks.

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  • blue

    If nothing else, it appears that the market wasn't listening to Mark Sue yesterday.

  • http://nortelinsider.wordpress.com/ Desk Jockey

    Wild swings are a characteristic of penny stocks. Watch today, it'll be down double-digits in percentage again.

  • notafan

    NT didn't soar 32% “amid” news that Mark Sue had slashed his target price to zero. NT soared 32% “because” of the news that Mark Sue had slashed his target price to zero, taken account that he always bets wrong. Like I was saying, I really think he means well for NT

  • notafan

    And Mark,

    Don't feel like you have to start writing positive things about NT just because commenters pressure you to. That's not your style. Keep your negative critique's tone and do so without any apologies. Take a hand in NT's destruction among with your fellow top commenters.

  • joremero

    I think investors that think that NT has enough cash for now got in for a very inexpensive stock

  • http://www.allaboutnortel.com Mark Evans

    Not sure whether to take that as a compliment or not. :) If I can find positive things to say about Nortel, I'll happily do it. And if you want to pass along anything – news, analyst reports – with an upbeat tone, that would be great.

    Mark

  • One of the few left

    This is like your team being down by 40 points in the 4th quarter with seconds left in the game and your team scores. You know it is pointless, but you still cheer just the same.

    I for one sincerely hope Nortel can turn things around for obvious selfish reasons (i'm still with them). I doubt it is going to happen, but I do still grasp at that last little splinter of hope. I just hope that someone snaps out of the koolaide induced trance of the GE-inus and realizes he has to go so that we have a chance to turn it around.

  • http://nortelinsider.wordpress.com/ Desk Jockey

    And… it's down $0.11 or 13.8% so far today. No need to report on the so-called “good news” just because delusional people demand it. Stick to your formula Mark, more people like AAN than hate it.

  • protosphere

    Why did it go up yesterday?

    Today's resumed decline may prove Mr. Hodson's questioning whether it is actual buying (which is unlikely due to this revised price target of zero) , or short sellers covering their positions given it reached a nickle presplit.

    http://www.bloomberg.com/apps/news?pid=20601082…

    “Once a stock goes below a dollar, you never know if it's short covering or real buying,'' said Peter Hodson, who helps manage about $4.6 billion at Sprott Asset Management Inc. in Toronto, referring to investors hedging bets the shares will fall. “I don't think any serious money managers are paying any attention to that stock.''

    Down 15% so far within the first hour of trading lending weight to the short seller theory above as anyone buying either has a vested interest catching the falling knife buying shares at a fraction of what they paid for them (most lost averaging down post bubble) or is trading it with the same irrational exuberance I call overly opportunistic speculating one might have witnessed with Air Canada or Stelco before they bit the dust. Either way, it is was not a solid rally or any indication of the stock recovering in my opinion, let alone struggling to avoid delisting trading under a dollar…Horrific considering this translates to under a dime extreme presplit.

    One analyst's target of 50 cents has already been met so soon thereafter, the other's we await in this trend, and note that analysts traditionally overstate or revise targets above what it is currently trading at.

  • Why Me

    Hi Mark,

    Not much of an upbeat but I was surprised to see there are still over 400 institutional holders ( going up in the last 3 months ). Even more surprised to see a majority of them increasing their position during that same period. Explanation ?

    http://www.reuters.com/finance/stocks/instituti…

  • puddintane

    Nortel is currently soaring -30% again today. Is that how to objectively state this irrefutable Fact? Is “unsoaring” a word?

  • The Psychiatrist

    Why did it go up yesterday?

    Today's resumed decline may prove Mr. Hodson's questioning whether it is actual buying (which is unlikely due to this revised price target of zero) , or short sellers covering their positions given it reached a nickle presplit.

    So why bother covering a short position if that's what Peter Hodson thinks happened to Nortel yesterday?

    It amounts to the samething,whether there were actual buyers in Nortel stock or whether it was short covering- both actions boil down to the fact that the possibility of a turn around still exists,otherwise why bother covering your short position in the first place?

  • less

    Actually, NTs horizontal surge today is a respectable -16%, i.e. a full 50% higher than your histrionic -30% prediction.

  • fedupwithstupidity

    Just a dead cat bounce, i.e. short covering, short squeeze, etc. – not a “soaring” stock.

  • fedupwithstupidity

    Just a dead cat bounce, i.e. short covering, short squeeze, etc. – not a “soaring” stock.

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