It wasn't too long ago that this Company was the Darling of the Canadian Stock Market trading above $120. a share, in fact I had some at $90. that I sold at $60. and then bought back again "cheap” at $30 only to see it go to $10. at which time I said "uncle". One of my Buddies still has a bunch of the shares and I keep telling him to actually try and get the individual shares certificates themselves and if he ever does a room over in his basement he could use them as wall paper. I don't like knocking Companies especially Canadian ones with such great history but it seems every quarter they are laying off more and more people and in this economy it sure looks like the making of a "wake".... it's kind of funny that although they couldn't seem to get their numbers up they will probably end up there "2 to 4" or "7 to 9" and you can probably count on that...
Nortel suffers $3.4B loss in Q3; 1,300 jobs to be cut
The Canadian Press
TORONTO — Nortel Networks Corp. (TSX:NT) reported a multibillion-dollar quarterly loss and said it is cutting 1,300 more jobs and slashing spending Monday, moves analysts say are affecting the company’s long-term viability.“Nortel is substantially less attractive the more it cuts,” said Duncan Stewart, president of Duncan Stewart Asset Management, a Toronto-based money manager. “These sorts of pieces of news make it ever more likely that Nortel will get bought, either in a single chunk, which is actually pretty unlikely, or in bite-sized pieces.” Andy Woyzbun, lead analyst at Info-Tech Research Group, described the effect of the economic downturn on Nortel as “just another kick in the head to someone who is trying to stay upright,” and said his clients are starting to express concern about the company’s long-term viability. “The long-term viability has been an issue for some time now, and it’s only getting worse,” agreed Stewart. The Toronto-headquartered telecommunications equipment maker, reporting in U.S. dollars, posted a third-quarter net loss of $3.41 billion. For the rest of the story see http://www.theguardian.pe.ca/index.cfm?sid=188765&sc=101
Tuesday, November 11, 2008
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I remember my first experience with Nortel, which shared a facility in Georgia with one of my prior companies. They shared the cafeteria. There was our line, which we had to pay for lunch, coffee, etc... and there was the Nortel line that had free lunch. I guess it goes to show you there is no such thing as a "free" lunch. I predicted over 10 years ago they'd be in this boat. Hope they can turn it around....
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