More U.S. Government Business

More PEC Solutions “dividends”: Nortel has won a $23.6 million contract to provide litigation support services for the U.S. Navy Office of the General Counsel. And everyone thought that spending $443-million of cash to buy a systems integrator wasn’t a good idea…:)

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5 Responses to “More U.S. Government Business”

  1. Observer Says:

    Note that this $23.6 million sale (not profit) is spread over 5 years.
    What is the profit on almost 5 million a year?

    PEC (now cleverly named Nortel Government Solutions) had declining earnings since 2002. The analysts hated the PEC acqusition. Nortel spent $448M on a company with declining annual earnings of $15M, which rivals just leaving it in the bank for interest sake. The Admiral who abruptly departed was also to save the day here with his contacts, as a dream team (some plea bargained) was replaced with a green team who’s stock didin’t fair well ever since with even more financial revisions, always overstating error, never under.

    They have never had a good track record in acquisitions since the bubble era where they wasted a whopping $20 billion bucks and their stock’s outlook isn’t getting better for Nortel as others merge. Nortel makes new lows every year as they shrink and lose money.

    Not too much has changed there for the better since the turnaround lie /one of the world’s largest frauds it seems. The theatrics are ongoing with a reverse split approved at the AGM, they even paid a premium for their new CEO’s who defrauded a written contract on several occassions with an employer who passsed him. There is no long awaited plan at Nortel, it is on the fly as they cut products, yet no R&D cuts they boasted for so long, SGA grows as they buy time increasing liabilities printing high risk bonds that requiring pensions be listed now making them harder to get. They downplay further penalty to see how far up the chain of command this went claiming work was already done when revisions are new, a whopping 5 billion now adding this 1.5 they initially downplayed at 866M as creditors increased collateralization by 50% to 1.5B, they keep bonuses for a year worst every time they count it, extend repairing controls from 18 months they said over a year ago, to coincidentally 2008 when 1.8B is due and requiring $300M in expensive SAP software, they directly influence what they called a fair settlement by announcing revisions that tank the stock they settled shares with, a reluctatance to chase past officers resulting in a derivative class action, selling off assets to the point of selling the business now, with criminal results and fines looming, etc., etc.. it is sooooooo endless… when is enough, enough already… how can anyone superficially or dispassopnately sweep all these ongoing events under the rug proverbially extending a benefit of the doubt or good faith under safe harbour with so many still there, “silent under their councel’s advice”/”difficult to find”

    Look at their history and see what has transpired since:
    http://www.cbc.ca/news/background/nortel/

    With Tom Astkle’s $1.6B projected cash by year end even after printing a multiple of this in Nortel paper high risk bonds and tanking shares, they have fines to pay that won’t take paper. This leaves no room for any substantial acquisition(s).

    They already diluted 628M shares (14.5% of the company equity above the traditional 100M shares /yr they diluted annually) Who would take Nortel paper? The fines won’t and they can’t collateralize 1.8B debt by 2008, how can they acquire anything as they slash and burn assets/business/staff/benefits/numbers/cerdibility/etc… as others merge and brace.

    They even paid a premium for Tasman:
    “Still, after nearly a decade in business, the company manages to make less than $10 million in sales per annum — Hoovers puts the amount at $7.8 million. At the advertised price, therefore, Nortel looks to be paying a whopping 12.8 times sales to acquire Tasman’s technology. ”

    Even Putian / Huawei partnerships didn’t materialize any better than their hopes with BSNL, Neptune, or missing everywhere like BTas they hype piddley orders to keep their name in the news like they are still doing something/anything, same reason they made these silly acquisitions I suspect.

    This mammoth has its hands full as it battles the inevitable zero at this rate. Even acquisitions appear to be getting tough in light of force 10’s snub of thanks but no thanks now.

  2. observer's psychiatrist Says:

    Dear blog members,this individual observer better known as jamezzz has been in therapy to overcome losing his grandpa’s inheritence money to the tune of $258k.

    I have been working really hard with jamezzz, and most recently had shown some progress with respect to acknowledging the fact that the blame lies strictly on his shoulders and not former Nortel management of which has been completely overhauled.

    This latest rambling from observer aka(jamezzz) is a result of his gaining access to an internet accessible pc, which unfortunately has also demonstrated a relapse on the progress that he had worked so hard to acheive just prior to this latest rambling.

    yours truly

  3. Observer Says:

    If there was something you disagree with, substantiate it, say so, than merely personal attack with idiocy judging readers intelligence from your own.

    You are polluting this blog contributing zero as usual but fabrications and personal attacks. It is plain to see the degree of challenge and who needs a psychiatrist here.

    You have endlessly been proven a mad hatter chronic liar on Yahoo’s message board for Nortel (NT) too. All readers have to do is search your posts vs. those you attack.

    You have been pumping this stock since a multiple of its value with chronic fabrication. Why? …and what’s with the “yours truly” above, like your traditional “have a nice day!” trademark at Yahoo.

    You are endlessly exposed as shameless and unethical.

    Your arsty dialogue fools no one as all the testimonials on your web site for “holistic healing”, cure all “immune juice” and “Tsunami relief” and “trade center donationtions” are ALL written identically, by the SAME author, as a google search on “abc4all” will also show. Endless fraud and lies you live for. I hope the readers report your site “abcsofhealth.com” to the FDA for quackery as it is illegal too.

    So now you stalk posts here now with the same shamelss unethical BS. See where it gets you. The SEC should take a great interest in your tactics and vested interest too after visiting your many web sites and yahoo posts I would imagine.

    When some one pumps this stock so hard all the way down like these multi ID/IP koolaid queens on Yahoo (“mindgallery” and “abcsofhealth.com” et. al., who are not educated enough to be artsy) we suspect they are employees who stalk and try to antagonize critics all the way down since a multiple of its value. No shareholder relentlessly defys the facts this long with these unethical tactics. Mad hatter is an understatement, no wonder “psychiatrist” is the first thing that comes to this challenged reptiles’ mind.

  4. rock samborsky Says:

    Psychiatrist is right Jamezzz, you crazy little attention whore. The Yahoo MB isn’t enough for you? Do you really feel the need to pollute yet another forum with your crazy talk? You think you can make a fresh start here??? The fact that you think that is just another symptom of your loopty-loop condition.

    Now take your crazy pills and go do something useful for a change.

  5. Luke Says:

    Observer, don’t you see you never get a rational reply from anyone? That clearly means your not considered as a thinking person. It would be clear to a kid 3yrs old. Sorry I had to say.

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