LocalTechWire’s The Skinny highlights the fact Nortel shares have jumped 30% since its reverse-stock split (10 for 1). While The Skinny concludes the stock is “no longer a dog”, analysts appear to be unenthusiastic with 24 of 33 surveyed by Thomson/First Call calling it a “hold”, while only six call it a “buy” and two a “strong buy”.
Obviously, the Ethernet supply deal with BT, which was recently announced, is a key factor but you have to wonder what else investors are excited about when it comes to Nortel. Are they finally buying into CEO Mike Zafirovski’s plan to restructure the company so it can become a leaner, more focused entity? Do they think partnerships with high-profile firms such as Microsoft and LG are going to Nortel an edge within a highly-competitive industry? And/or is Nortel stock just cheap compared with its telecom equipment peers.
More: Speaking of telecom equipment makers, Motorola is slashing 3,500 jobs, or 5% of its workforce, to reduce operating costs in the wake of disappointing fourth-quarter results. The company said the job cuts will save its about $400-million over the next two years.
Technorati Tags: Mike Zafirovski, Nortel
All Nortel, All the Time 
January 21, 2007 at 7:08 am |
Mark:
Could the interest in Nortel be related to growing awareness of the ramp-up on online video? Money managers like David Burrows are buying Cisco for this reason — maybe there is some spill over for Nortel too.
January 21, 2007 at 8:41 am |
Bill Ritchie Says:
January 20th, 2007 at 10:53 pm
After further inquiries with Mike Z and discussions with Nortel’s investors division, it appears they are NOT going to compensate any shareholder, period.
Their policy appears to be to ignore all investors who “hung in there” hoping the “old” stock value would come back ’some day’ forget it, it’s not happening. The reverse split of 1 for 10 put a stop to that–BIG TIME.
If you did not participate in the two class action settlements that expired on November 20th 2006 then you qualify for this new suit.
We need to know how many (pre Dec 1st 06)shares you hold and at what price you paid for them. If the average paid is below say, $8. then it may not be in your best interest to participate. It’s possible that the stock “might” climb to $80. some day!
Looking forward to receiving your information–type Nortel 1 for 10 in the subject of your e-mail.
Bill Ritchie.
cwritchie@cogeco.ca