In downgrading Nortel to a “sell”, Zacks Investment Research didn’t pull any punches.
Its decision was based on the lack of “any near-term growth catalyst”, as well as “the company’s debt level, disappointing financial expectations, and general economic weakness that may impede near-term improvements”.
“Nortel…is facing severe business challenges as a result of the global economic slowdown, increasing competition, and reduced capital spending on the part of several of its major customers” Zacks said in a research note, adding that the company’s third-quarter results were “significantly below expectations”.
“Revenue from all four business segments decreased year-over-year with further declines expected over upcoming reporting periods. In addition, increasing cash burn rate and a highly leveraged balance sheet remain concerning.”
only beating a dead horse. this one has already started to smell.
protosphere
“the company’s debt level, disappointing financial expectations, and general economic weakness that may impede near-term improvements”. "increasing cash burn rate and a highly leveraged balance sheet remain concerning"
Zacks Downgrades NT
In downgrading Nortel to a “sell”, Zacks Investment Research didn’t pull any punches.
Its decision was based on the lack of “any near-term growth catalyst”, as well as “the company’s debt level, disappointing financial expectations, and general economic weakness that may impede near-term improvements”.
“Nortel…is facing severe business challenges as a result of the global economic slowdown, increasing competition, and reduced capital spending on the part of several of its major customers” Zacks said in a research note, adding that the company’s third-quarter results were “significantly below expectations”.
“Revenue from all four business segments decreased year-over-year with further declines expected over upcoming reporting periods. In addition, increasing cash burn rate and a highly leveraged balance sheet remain concerning.”
Chart source: TradingMarkets.com
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