Is Nortel Good Value?

In a submission to Seeking Alpha, Contrarian Investor’s Mark Schlotzhauer uses Nortel as an example of how investor needs to focus on value rather than following the crowd. To assess whether Nortel is good value, Schlotzhauer uses as a benchmark (it’s a site that tracks the investment portfolios of super-rich people such as Warren Buffett). Of this elite crowd, only two (Charles Brandes and George Soros) own Nortel. Schlotzhauer concludes that he is “staying clear of Nortel as we feel it does not have an adequate margin of safety and no economic moat ( i.e. sustainable competitive advantage)”.

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One Response to “Is Nortel Good Value?”

  1. umts Says:

    Nortel is a junk bond since many years now… and the reason why Mike Zero is there and told all his friends to come probably means that there is still to eat on Nortel!

    So, this guy is right: Nortel only makes CEOs rich, not employees nor investors!

    What a nice company… We used to call it “Bordel Networks” here! Maybe french canadians will understand but not Mikey… Hope you will make good business with sasken to solve the problems (supply shiva, maybe!) now…

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