Comments on: Seeking Alpha’s Nortel Bonanza

By: broadbandbill

broadbandbill — Tue, 02 Dec 2008 04:36:52 +0000

Then let's blame Richard Nixon for the credit crisis. Also, you always dump a cash cow when it becomes clear it will become a cash pig, which was back in '06…–bb

By: Mark Evans

Mark Evans — Tue, 02 Dec 2008 03:17:04 +0000

Sorry, it still doesn't make sense. Bell isn't going anywhere, and whoever ends up with Nortel or Nortel's assets will happily step up to the plate as the official supplier to the 2010 Olympics.

By: Observer

Observer — Tue, 02 Dec 2008 02:52:11 +0000

But the wireless portfolio was a cash cow…you never dump a cash cow until you've milked it dead. As I said, the issue isn't that they waited. They never had anything do replace the old gear with better performing, higher margin products in the wireless space. When you change CEOs constantly, there is no consistent investment and only continual program cancellations which is exactly what happen. Again the problem wasn't what happen after 2006. The problem was what happen before 2006. By then, it was already too late. Many blame the current management but I am not one of them. The real people to blame were the previous management and the boards. Maybe the current management did take longer to figure out the moves to make then they should have but I argue it wouldn't have mattered anyway. What was reaped between 2006 and now was sewn long before 2006.

By: less

less — Tue, 02 Dec 2008 02:01:07 +0000

I bought 8 shares of NT at ca. $10 back when to test run my new Scottrade account. I bought no Cisco stock whatsoever, so I, too, made much more money off Nortel than Cisco.

By: broadbandbill

broadbandbill — Tue, 02 Dec 2008 01:08:12 +0000

Observer,

Vision is never been my problem and I have pretty short hands anyway. I agree with you on the global crisis; that is not the core of the argument (or discussion herein).

Nortel should have DUMPED their entire wireless portfolio, which would have strengthen both their balance sheets as well as focus. That is what Wall Street analysts told them and, in this case, those analysts were correct.

Instead Nortel got a self-promoting yoyo that never had any wireless experience talking about WiMax, 4G and LTE. The blind leading…A better balance sheet (CDMA would have fetched a lot of money form PE firms two years ago); a sharpened focus on Enterprise (a good margins biz) and Metro-Ethernet (futures) would have put Nortel into a whole different position today. Now, they need to sell a key jewel and are setting the company for an acquisition or a ‘merger’. They had their chances and blew them all!

Got to know your limitations otherwise the competition will exploit them (and they are)…--bb

By: Observer

Observer — Tue, 02 Dec 2008 00:34:54 +0000

for the record, i've made more money trading Nortel the last 8 years than Cisco. Buying and holding is for long term losers.

By: Observer

Observer — Tue, 02 Dec 2008 00:32:31 +0000

We see how banks and other institutions on wall street have done so well by listening to those same top/friendly power brokers you refer to. I'd say things have worked out real well for the banking industry and overall economy..wouldn't you ? And if you seriously believe the global economy was booming 2 years ago, you seriously cannot see further than the length of your hand. The credit crisis was sowed in 2002-2004. It is now being reaped. Anyone who says, none of this was predictable just isn't that smart. Nortel's problems have more to do with not changing soon enough..say in 2001-2003 rather than waiting until 2006 to shift spending to future markets. I say any company that has 4 CEOs in 9 years is well on its way to demise regardless of what market they play in.

By: joremero

joremero — Tue, 02 Dec 2008 00:26:49 +0000

just go ahead and share it, though we will take it with a pound of salt

By: Desk Jockey

Desk Jockey — Tue, 02 Dec 2008 00:19:09 +0000

Oh, how great of you to grace us with your vast knowledge of equestrianism that adds absolutely no value to the discussion. (Like the rest of your posts)

Tell me sir, do you get up everyday looking to act pretentious among others?

By: broadbandbill

broadbandbill — Mon, 01 Dec 2008 23:58:18 +0000

Observer,

Excuses, excuses, excuses…

When the “World Classers” established their roadmap 2-3 years ago the global economy was booming. It is those early and huge miss-steps (bad hires, wrong strategy, stubborn convictions about retaining 3 different markets, etc. etc. etc.) that set the wrong course for Nortel and its subsequent and continued demise.

Had they listened to sound advice from top and friendly Wall Street power brokers telling them to do the right things, along with numerous industry insiders with equally impressive backgrounds and experiences and equally concerned about Nortel’ ability to operate in an increasingly competitive global stage in 3 different markets that lacked synergies (components, channels, margins, etc.) Nortel could have escaped the current economic crisis or, at the very least, used it as a good excuse.

Regrettably and very sadly, they don’t have that option; their precarious position is self-created. They can’t even articulate their vision: ‘What is Nortel?’ (Note: Global leader in communications is sooooooooo last century)…-- bb