Barron’s Jumps on Nortel Bandwagon

Nortel’s PR machine continues to work its magic. After a positive story recently in the Wall St. Journal, the company is getting some serious love from Barron’s, which believes Nortel shares could climb by more than a third as its restructuring starts to bear fruit. I don’t have access to Barron’s Online but the article starts like this:
“MIKE ZAFIROVSKI EARNED HIS CHOPS under Jack Welch at General Electric, then the corporate world’s farm system for operations-minded chief executives. He went on to Motorola, where he tended to a struggling handset division — and helped lay the groundwork for that company’s RAZR-led revival.
Now he may be giving Nortel Networks (ticker: NT) a sharp edge of its own. The Toronto-based maker of telecom-infrastructure gear, battered by the collapse of the tech bubble and an accounting scandal, tapped Zafirovski to lead a turnaround last November. One year later the fruits of his work are starting to become apparent.”
Update: Joe Ismail, a technical analyst with Maison Placements Canada, told Reuters that “”The big story today is the one about Nortel in Barron’s and that could probably push Nortel’s stock on the upside”.

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