How Low Can it Go?

By Mark Evans | Published: November 20, 2008

Nortel (NT:NYSE) dropped to 45 cents this morning, giving the company a market capitalization of $226.1-million. (Keep in the mind, the major stock indices are down 1% to 2% today).

The question is how low can Nortel go? Is Mark Sue’s target price of zero that far away?

Clearly, investors have lost confidence in Nortel’s prospects and strategic direction, so now what?

Two schools of thought: one, Nortel’s doomed due to its uncertain financial prospects, volatile economic conditions and cash burn; or two, Nortel is becoming a no-brainer bargain if CEO Mike Zafirovski’s plan to reduce operating expenses and focus on enterprise, software and telecom pays off.

What’s an investor to do?

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

    Tired,

    Thank you for the mature response – far from babbling and endless. I appreciate your acknowledgment of the stress that we are both under and can understand that we can both make irrational statements.

    Like you I want Nortel to make a come back and believe it can – just not with the current direction it is being given. However I apologize for what I now realize was unwarranted criticism of you!

  • yes4aapl

    You are a crook and proven so many times.
    Your diversion games are well documented on both message boards.
    You have no shame to post your Strong Buy articles for sooo looong.
    Meet me in Embrun to discus further actions against each other.
    Wordsofwisdom aka Mr Morrison will explain to you how wrong you have been in last 5 years.
    Your other IDs like Mr Evil explain it right away who you are!
    and so many Ids on AAN
    all created to misinform and deceive investors!
    Are you denying that you are
    * Not Observer
    * Nortel_will_survive
    * Nortel Will Survive
    * Tongue.In.Cheek
    You think we all are stupid investors who will buy your BS?

  • yes4aapl

    btw
    I have posted my email many times
    yes4aapl2007@yahoo.com

  • Tired

    I appreciate your response. Thank you. I am glad we can differ and yet agree. I will try hard in the future to refrain from great emotion in my posts. But I will be damned if it will be easy. Cheers.

  • fx

    stupid bastards, just wait and see. 3 weeks. i have my direct sources.

  • fx

    you have no idea what you are talking about.
    if you are an ex Nortel you were deep down in the food chain

  • yes4aapl

    Mike Z
    He is the smartest guy so far, the smartest CEO.
    He prolonged Nortel business another 3 years.
    That what it was in his contract.
    Now he is ready to go with nice package!
    Good job Mike. I forgive you all your sins about NT stock!
    Only crooks and grumblers invested in that stock in last 4 years! They knew the stock is the worst on NYSE and they got in anyway.
    40 cents does not look bad but $200 mill market cap tells the story!
    If there were any chance for NT stock to come back there would be no Selling, just Buying at this level.
    nope
    Not a chance for the stock…
    only BK which is the best solution for everyone!
    It happened before and it will happen after NT is gone!
    AirCanada
    LehmanBros
    What about Marconni?
    Did PaviB used CH11 there?

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

    They said that about the “second coming” as well! But that was back around 100 AD… still waiting!

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

    Do you read what you respond to? Or do you just post hateful comments randomly? It's no shame being dull, there are many people who didn't pay attention in high school.

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

    They said that about the “second coming” as well! But that was back around 100 AD… still waiting!

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

    Do you read what you respond to? Or do you just post hateful comments randomly? It's no shame being dull, there are many people who didn't pay attention in high school.

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