NT Up Again

By Mark Evans | Published: March 27, 2009

Nortel shares climbed another 21%, or 6.5 cents, to 36.5 cents today on the Toronto Stock Exchange. For the week, it more than tripled. Interesting.

NT

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  • danman

    I want to hear some more rumors. There have been so many on the internet the past few months. Can anyone care to logically explain why these shares are up?

    And please for the love of God, if you have nothing interesting/smart to say keep silent. No more NT or “Z” jokes, I'm sure most of us have had just about enough.

    Thanks!

  • danman

    p.s:) Come Together…Right now…Over me.

  • S_O_S_This_is_HMS_Nortel

    The whole board will resign on Monday !..How about that ?

  • Theleftbehind

    Avaya is very close in buying the enterprise division. The chanel structure is one if the key elements of interest for avaya. Siemens enterprise is interested but the deal structure us more complex due to the fact that their Corp structure is a JV with PE. They never aquired them in the sense of Corp acquisition. Incorporating NT would make it very complicated to drive cost synergies out.

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

    Sorry that we can't satisfy your urges to make a few bucks off a dead cat bounce but if you don't like what you read here then go elsewhere to find your rumor mill.

  • horace_grimswold

    This e-mail that I received today marked “URGENT!” might have something to do with the jump:
    “
    Get: NT First thing friday. This is going to explode. Check out for hot news. The alert is on. Company : Nortel (NT.TSE) Current Price: $0.11 Get in now to maximize Gains.!

    Be ready for a hugh Friday.
    “

  • sbsesb

    Rumor I hear was that all 3 BU's have been sold and it will be announced shortly.

  • Got_Out_Years_Ago

    What channel structure?

  • PM_Guy

    Could it be due to (Call,Put) options coming due and people having to cover their positons by the end of the quarter?

  • Meridian

    Enterprise Voice has a phenomenal channel to market globally both thru distribution partners and direct. Could you image as a start up company how you would ever come close to having the sales paths that Nortel does. How you would attain the global reach that we have. We laugh & cry about what is happening to the company, but each of Nortel's business units are still large companies in each of their own right. There are still some amazing products, willing customer bases, and skilled staff to be leveraged by the right leadership team. The board or whoever buys us, just needs to put in place some leaders with a balance of telecom technical & telecom marketing skills – not cost cutters or six sigma gurus or manufacturing dudes — people that know telecom. Sadly over the past 8 years the BOD forgot what Nortel really is.

    I'm still hopeful (I didn't say I believe) just that I am still hopeful that we can recover parts of this business and move forward.

    Happy weekend folks

  • Don

    Jean Monthy to return to the Nortel helm next week … In a radical re-org (being positioned as the ‘right hand turn – and turn again’) Nortel will be re-named Northern Telecom.
    Z to take on a new role in charge of ‘regional catering’

    You heard it here first;)

  • less

    Funny you should mention “Meridian”…

    Just this last week I've noticed a sudden mild spike in my personalized “telco job offers” e-mail inbox requiring knowledge of Nortel PBX, Call Pilot, legacy stuff.

    One company in particular appears for some reason to be replacing its entire JCI 1-2 staff with “newbies”, and this nationwide.

  • joremero

    huh?

  • sick_sigma

    I do not know why the Nortel stock price is climbing. However, there is one really, really, REALLY obvious explanation though……. people must think that Nortel is about to get sold.

  • protosphere

    They already have, trading at around 3 cents presplit =) Crushed by mass exodus of people, shareholders, customers, and bankrupt.

    Are you singling that out loud over your morning KooAid as Nortanic tosses turds in the punchbowl advocating a thousand flies just can't be wrong.

    If you are there is also “Beyond Boundaries” “This is the Way” and “Business made Simple” for fraud, lemmings, and zero respectively. =)

  • jssj1

    But even in that scenario how would the shareholders end up with anything more than pennies on the dollar?

  • protosphere

    My goodness, why don't you post your sources. After all, what good is a juicy rumor if we don't know where the whispers originate? Was it some one in the know or close to the situation again… never mind, I know… no comment.

    After all, there is a difference between rumor with unsubstantiated speculation and misleading fabrication with intent, especially if it seems highly unlikely given they were already unable to sell key assets to date let alone all 3 now. Good heavens.

    This is like coming up with a proverbial bonus driven plan today when they were unable to master one earlier in an exponentially better position, after fire selling anything not nailed down and printing billions of Nortel paper to live another day as they eye severances/pensions.

    Strikes me as outright profound and dunno if I'd call it a rumor let alone good news amid the overwhelming bad. After all, what will be left to pay anyone back in this smaller entity even if these 3 BUs were theoretically sold? Has anyone done the death spiral math here? You can be sure they are desperately, risking careers, to present like a sales flyer with their stellar credibility and forecasting skills. Hey, maybe they didn't mean to fold either when downplaying the WSJ article they don't usually comment on. =)

    hahaha… all 3… I have a rumor I'd like to start too in that they just patent wireless solution called Telesphere that encoprates a crystal glass sphere ball mounted on a silk pillow to better facilitate their forecasting skills and restructuring plan.

    May I suggest they can not sell a thing anymore and no one is interested in their rapidly depreciating business units for all the good it would do anyways. hahaha.. all 3, thanks for the laughs, at least that one is entertaining.

  • Donn

    So the rumour I heard is that Jean Monthy will take the helm once again at Nortel, and will embark on a massive restructuring exercise in the coming weeks(an internal communications programme is calling this 'The Right Hand turn – and right again'). Nortel will be renamed Northern Telecom.

    Z will take charge of global catering.

    Sounds plausible …..

  • protosphere

    Forward calls are expiring worthless, look at the options chart
    No one margins a penny stock. today let alone one that is bankrupt.
    No need to cover a short position as it goes down.

    They sell Puts before expiry as they make money on the stock going down. (too close to the expiry may prove illiquid too when they know they got ya =))

    US options are by far more liquid than Cdn. I would never trade the TSX again given the crooked OSC open season on the investor like fox looking after hen house and TSX allowing penny stocks to trade, let alone one that is bankrupt, unlike the NYSE.

    nah… its AirCanada / Stelco craze duja vous …bad trading all over again by the overly opportunistic spooking the flock…defying its eulogy or that it will miraculously rise from the ashes

    Smartest to ignoring timing the markets for this on sale special as it is bankrupt by value and definition… brainless irrational exuberance at its finest…more money than brains… call it whatever with this wave of new bag holders thinking pennies is cheap or averaging down for so little is a bargain

  • protosphere

    they won't even get pennies on the dollar as shareholders stand last in line of unsecured creditors… shareholders will get nothing, sold assets or not, restructured on not, this is corker

  • protosphere

    No but it is the most feasable of all the happy talk here yet, short of Roth returning =)

    Even the Z man being the Mother Teresa or Napoleon reincarnate makes exponentially more sense than able to sell any business units =) If he takes up knitting or sailing we will know something is up. Either that or he is preparing to cop a plea as others increase lawsuit liability insurance.

  • gmg733

    From the inside Friday, the rumor was private equity was going to purchase Enterprise, or some assets of it, and the Carrier pieces where going to Nokia and Siemens. Speculation is the Enterprise would fall the way of Gore group.

    The most interesting part of the story is companies are finding Mike Z too bullish and pig headed. I guess I'd be trying to bleed the company too if my career was coming to and end.

    It amazes me at the number of businesses today that are managed incorrectly. Nortel had big issue steming before Mike Z., but he put the nail in the coffin. He cleaned up a lot of the mess from the back office perspective, but didn't fix the big issue which resides in the business units and the politics. Three different groups would create essentially competing products. Talk about a waste of R&D money. And the managers who toe the political line should be shot. Corporate America is becoming a group of lemmings. Keep your head down, toe the company line and maybe you'll get a KEIP. It's crap. Many managers had the opportunity to change the company and chose to simply keep drawing their big paycheck.

  • ibeleiveinnortel

    As a manger at NT, I beleive in NT, NT stock, Mike Z, Joel H., Six Stigma, rank and yank, hyperconductivity, Jack Whelsh, going into creditor protection to finally get this company restructurd once and for all! All that stuff I beleive! I might not be the sharpest tool in the shead; but I believe! I believe! Say it with me folks, 1, 2 3: I BELEIVE!! Don't be so negative!

  • protosphere

    Just how many a re privy to these “inside Fridays” to alleviate suspecting any further planted disinformation.

    The assets are becoming increasingly worthless by the day, for all the good moving fast does them, let alone ponder supposed offers to remove them from sale with a bullish Mike than they can not be sold at all as more to the point.

    Even getting a bonanza price for these rapidly depreciating units plus no severances and even throw in some magical pension relief, heck throw in a few months free mega interest too while we are it to see, there are still no guarantees in this catalyzed death spiral, and these things just aren't going to happen anyways… contrary to what they are desperately seeking to feed us again in projecting any restructuring… their forecasts have already failed miserably let alone now

    I'd hold suspect any insider information leaking from these pinnacles of transparency and honesty (for all the good any sale will do them anyways aside from bonuses. i.e. debt /pension/ severances/interest/legal fees/etc., vs tanking cash and customers, tanking carrier+ ethernet+enterprise combined is even open to speculation as to just how much it's all worth… like below zero losing money even after rewards to cut to the bone… ….and whatever tanking cash, JVs, etc., they have left like NFG /PEC /LG…should anyone be able to do anything with it which remains the crux… even if they could trust them or their numbers /forecasts… not likely in my view contrary to any upcoming presentations of happy talk for chronic bonuses motivating restructuring too.

    I'd fathom Carrier might be best of any worth something / anything if it wasn't for others not needing it.

    Hence… they have nothing as John Dvorak would say in “Nortel's Pipe Dream” commentary one can google search. =) They are just looting the corpse on their way out after risking careers….and swimming for their lives after the SS Nortanic sinks….with no one around to save them this time… not banks, the EDC, dilution /shareholders, and now even employees are threatened and gagged as their severances /pensions jeopardized…but traditional bone us for them that falls under costs like their private jet…

    Enron/Worldcom would be envious for the liberties they were already extended.

  • Anonymous

    IBIN,

    you almost had it there until you said “I believe in nortel stock”

    and BTW , have you ever heard of spellcheck?? “restructurd , beleive” …..even your name is misspelled – ROFL!!!!

    You really arent the “sharpest tool in the shed” I guess

  • justinsalesguy

    Ok, here it is… CISCO has purchased LTE business unit AND Carrier VoIP and Nortel Enterprise is a toss up between Avaya/Silver lake and Siemens/Gores…mark my word.

  • ibeleiveinnortel

    As a manger at NT, I beleive in NT, NT stock, Mike Z, Joel H., Six Stigma, rank and yank, hyperconductivity, Jack Whelsh, going into creditor protection to finally get this company restructurd once and for all! All that stuff I beleive! I might not be the sharpest tool in the shead; but I believe! I believe! Say it with me folks, 1, 2 3: I BELEIVE!! Don't be so negative! Now is the time to be super positive in NT!

  • exnt_x_2

    “Nortel will be renamed Northern Telecom.”

    Anyone remember BNR?

    It disappearing was the writing on the wall.
    It was our Camelot.

  • jbinmass

    Just so you know it's shed…………now you've removed all doubt.

  • jbinmass

    Watch for an announcement early next week that Siemens has acquired (hostile or otherwise) at least the Enterprise Voice LOB, and possibly more. It could explain the sudden spike in the recent stock trading. I like to refer to it as either having an inside track, or a very keen Martha Steward style of intuition. It would all but eliminate the competition in the VOIP phone business arena.
    And to quote an earlier blogger:
    “And easy on the nazi rhetoric: one day your boss could be German. ;) ”
    FYI
    Headquarters : Wittelsbacherplatz 2 D-80333 Munich Germany

  • NortelGal

    This IBIN is not the same IBIN as the “real” IBIN. This new IBIN is mimicking the real IBIN, who at least can spell his/her own username correctly. New IBIN is funny — real IBIN is just sad.

  • NortelGal

    Yep, used to work for BNR (after Northern Telecom and before Nortel). Miss the purple days.

  • NortelGal

    You know, when the Nortel marketeers put that ad on TV, I got all warm and fuzzy when I saw it with my family. That's the last time I remember having that particular feeling about Nortel. How many years has that been?

  • NTblinker

    If it is true, what might it be as to the type of the deal?

    - All available customer contracts or
    - Not the contracts but only the business know how

    which one? Any idea?

  • scalpcutter

    The MEN thing has been in “being worked” mode since the summer.
    Don't hold your breath on any of these rumours.

  • protosphere

    Siemens couldn't sell their own enterprise unit :

    Jun 20, 2006 12:46
    Siemens said it will sell a majority stake in its Enterprise Networks unit.
    ___________________________________________
    http://www.infoworld.com/article/06/06/20/79450…
    June 20, 2006
    a Gartner analyst, said that his sources close to Siemens say to expect an announcement regarding the enterprise unit very soon, possibly this week.
    ___________________________________________
    http://ftalphaville.ft.com/blog/2006/11/22/939/…
    Posted by on Nov 22 04:54.
    Siemens has failed in its attempt to sell its loss-making business telecoms unit Enterprise Networks,
    ____________________________________________

    Nortel's Enterprise is down 30%, so I'd scratch that one.

    no MENs sale.

    Carrier anyone…. anyone… do I hear a dollar? One dollar?

    How much is PEC worth they paid $448M US worth, Do I hear half? Half! Anyone….anyone… K 1/3rd ….1/3rd …anyone? anyone?

    Seems everything is for sale fire selling manufacturing, headquarters, UMTS, anything not nailed down to just to live another day, unable to dilute into a higher stock value, print billions in Nortel paper… what is left now that CDMA that accounts for almost all their profits went into decline…

    Debt to Cash ratio widens with half their cash locked is offshore in JV's,
    Selling at a loss for years just to operate cutting staff and costs in their linear death spiral that just catalyzed to the downside

    Huge pension shortfall as an added whack
    Growing creditors like severances
    Growing interest
    legal fees, insurance premiums, bonuses… it's a bloated money pig like Monty Pythons just one little more tiny waifer gone bust!

    See deteriorating assets that are a worthless burden losing money if they can not be sold after already gambling billions just to maintain

    To bankruptcy with bonuses… why not a rally to boot =) It fits the brainless saga perfectly like the reverse split rally.=)

  • ibeleiveinnortel

    I suggest all you cynics take some some time out from your Nortel bashing and in your spare time (outside of work hours) go read this wonderful and inspiring book from the legendairy Jack Welch: “Jack, STRAIGHT FROM THE BUT”. I read most of this book after Mike Z took over NT and it has bean my guiding lite to become a high effective manger. You can order here for example: http://www.amazon.com/exec/obidos/ASIN/04465283…

    After you read this sacred book, maybe then you will understand how truely great Mike and Jhole and the other GEnieASSES are, and understand what extraordinary things they have done for Nortel and the employees. You will also gain insight into how effective Mike Z was in implementing the Jack Attack on NT.

  • rfc1149

    Yes note the different spellings
    ibelieveinnortel – (ie) the 'original' apparent true believer
    ibeleiveinnortel – (ei) the 'new improved' who is mocking the orignal

  • Lookahead

    I have said many time to you:

    Mike Z and GEnies top awesome work now is to cut the cost by laying off employees without severance pay.

    You can take an action now to support this top priority:
    voluntarily layoff youself without severance pay.

    This would immediately show us you are a true “I believer”, not spent your time here by posting a lots of lies.

    This would also support what your saying that ” how truely great Mike and Jhole and the other GEnieASSES are”.

    Do you have guts to take this small step to prove what you are saying to all of us?

  • less

    If you're now kicking back expecting a generous and guaranteed pension, thanks to Adolf, well, Germany's social security isn't doing too hot.

    Companies have long been firing old fogies from age 45 because they're too expensive to maintain. Expect to earn less you grow older.

    But they've also raised the retirement age for the post -1964 born from 65 to 67, while raising life expectancy to dilute the amount of yer monthly dole.

    Oh and do not ever forget to add a picture of yourself in your resume. Thems the rules in any truly classless society.

  • ExNtrl

    Maybe Mike Z is cost averaging down the $1M of shares he bought earlier to show he and the GEniuses believe…

  • 4merEmployee22

    You're joking? Right?

    Do you call that BASHING? When former employees and retirees are
    merely asking the WHY's? Why they lost their promised severances?

    Who the hell is Jack Welch? What does he have to do with former
    employees and retirees after loosing their severances and allowances???

    I will be more inspired by CEO Mr. Mike Z. if he will honor severances to
    laid off employees and re-instate the allowances of retirees!!!
    I WILL PROBABLY KNEEL DOWN BEFORE HIM LIKE A “SUBJECT”SLAVE
    AND KISS HIS FEET!!! Thank you your HONOR for giving us our
    SEVERANCES and RETIREE ALLOWANCES!!! We are all greatfull to you
    your Royal Highness.!
    …… and then I woke up!.. Yawn!!!!

    Hey! What else?

  • waverunner

    Hey gays,

    The worse thing Nortel Enterprise have is the channel structure. Perhaps this is the result of many years without any channel strategy, or many strategies without any convergence among the time.

    I know Avaya have the same problem or worse, but I can't imagine a combination of two companies.

    :-(

  • 4merEmployee22

    I really wonder how much did they aquire “BAY NETWORKS”?
    Heard it was over priced? Those were the days my friends.
    They sold a 'plant' and was not even publicly published? But then
    again, I don't know if thay have to?

    YES, I would like to believe too, that they should re-name it to
    NORTEL – Northern Telecom once again. Sounds cool with me.
    Just too many companies now with over emphasized “Network” name!

  • ibeleiveinnortel

    The Zman was menturd by Jack W and he has copied and pasted the stuff he “learned” from Jack while at GE. Something went rong with the copy unfortunately. Oh well, good thing the market tanked so that Mike could blame it on that. The awesome thing about being a follower of Jack is that you do not have to think, it is all worked out for you, all you have to do is follow the rules and shoot from the hips, “STRAIGHT FROM THE BUT”, as Jack says in his legendairy book.

  • AnotherSlave

    Let's start some new rumors.

    I heard Robert Greenwald from http://www.warongreed.org is going to do a Capt Zero movie to compete with Desk Jockey…

    Oh, well. It probably makes as much sense as half the ones I've heard.

    Signed,

    IbelievedinNorteloncebeforethemushroomscamealongformanagement

  • Theleftbehind

    HEY DESKJOCKEY… WE WANT TO SEE NORTEL DOWNFALL #11!!!!!!!!!!!!!!!!!!!!!!!!

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

    Nortel Downfall Part 11
    Part 11 looks at the awarding of KEIP bonuses for senior executives.

  • Many

    OK. How do I short this pig?

  • ExNtrl

    DJ you rock..This must be driving the Zero and the Hackney crews crazy..

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