TD Impressed with Nortel Investor Day


TD Securities’ Chris Umiastowski had some good first impressions from Nortel annual investor day. In particular, he was enthusiastic aboutt the level of details provided by senior management. “It was refreshing to have completely open access to most of these executives during the day, and to actually get real (useful) answers to questions,” said in a research note. “We think Nortel deserves a lot of credit for putting on a good show with a lot of transparency.” Umiastowski said he found the useful presentations were made by Peter Currie, Joel Hackney and Dennis Carrey, who should light on how Nortel will generate $1.5-billion of increased operating profits. “Investors who are interested in this topic should certainly spend the time going through these presentations since a number of specific (and real) examples were used to explain to the Street how these cost improvements are being achieved.” Umiastowski rates Nortel a “hold” with a target price of $2.50.


2 Responses to “TD Impressed with Nortel Investor Day”

  1. Observer Says:

    Since when have any of Nortel’s proverbially rosey presentations ever materialised?

    These shattered optimisms are as traditional as suprises in revising numbers worse every time they count them with the endless punch lines. Who believes a word they say anymore.

    The balance of 2006 was to be optimistic too, as Q3 comes in at a 99 million loss. I wonder what the numbers would be without the recent 1.48B moved forwards.

    Shattered optimistic Q404, Q205, balance of 2006, etc., now 2007 or 2008, when is enough, enough.

    They are in a death spiral exhausting assets to the point of selling thier very business and printing Nortel paper to survive as others merge.

    As Chambers said, there are plenty of large company yesteryear darlings gone today and Nortel has not turned around. Its premium stock price relative to even unreliable numbers reminds me of Stelco or Air Canada, as we await a reverse split in December, huge fines from decliining cash, extended repair of internal controls to 2008 when $1.8B debt must coincentally be addressed, their largest Canadian pension deficit that must be listed in future bond applications, criminal results and derivative class action, diluting an extra 14.5% equity, etc., it is endless

    Is Mr. Umiastowski overlooking what is to come with his $2.50 target and their history?

    In 2004 NT was as low as $3.90
    in $2005 NT was as low as $2.29
    in 2006 NT was as low as $1.90

    With a reverse split and all we anticipate let alone the multiply more surprises we keep getting, their endless contradicitons, etc., I find his $2.50 target somewhat optimistic. The balance of 2006 was suppose to be optimistic too with moved money and one more quarter to go they will report on in 2007.

  2. Ryan Says:

    I’m glad someone is impressed. Because as an investor sitting on a dead-end investment like Nortel, I certainly am not. This executive team is nothing more than great public relations people. However their inability to take their great ambitions and make it reality have thus far fallen short…very very short.

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