All About Nortel - Latest Comments in Nortel’s Market Cap Sinks Below $1-billion

Re: Nortel’s Market Cap Sinks Below $1-billion

eject — Mon, 06 Oct 2008 12:20:54 -0000

hear customers are sidelining nortel from optical deals now.

time to look for that eject button before this hits the ground. its not too far away.

I guess when the execs talk about putting the light out, they mean it literally.

Re: Nortel’s Market Cap Sinks Below $1-billion

Nortel investor — Sat, 04 Oct 2008 18:48:31 -0000

Hey... no problems...
I don't think they would consider any MEN deal here either as it will take months to arrange and close and i do not think they are prepaired to give that division away at a discount. So it will probably be some adjustments...
I would think on Sept. 17 they would have a pretty good idea of what backlog they will ship for their sales number of 2.3b. They already have 2.5 months of sales done so it will depend on the final 2 - 3 weeks of book /ship biz...
Well lets all hope for the best...

Re: Nortel’s Market Cap Sinks Below $1-billion

protosphere — Sat, 04 Oct 2008 17:12:17 -0000

Thanks Nortel Investor, I found it., you are right.

http://www2.nortel.com/go/news_detail.jsp?cat_i...

Nortel says:
"the Company expects its cash balances at the end of the third and fourth quarters to be between approximately $2.6 billion and $2.9 billion. It is anticipated that the third quarter cash balance will be closer to the lower end of the range due to previously expected one time payments and operating performance, with improvement in the fourth quarter ending balance. "

I wonder if they are anticipating MENs sale as I can not see operations contributing so dramatically with CDMA decline.

In light of this,. and my doubt in their ability to fire sell MENs too, I doubt they will making the higher end any more than $20 was a buying opportunity 2 years into this 3 to 5 year fix.

I generally disregard anything they say since downplaying revisions on a restating a restated restatement that doubled estimates with a green CEO who violated contract signed on several written occasions while joining a company struggling to regain credibility. =) If cash comes in even lower than this come Q3, that too would not surprise me and, ...well... yikes. =)

Thanks again.

Re: Nortel’s Market Cap Sinks Below $1-billion

The Psychiatrist — Sat, 04 Oct 2008 14:45:08 -0000

Re: Nortel’s Market Cap Sinks Below $1-billion

Nortel investor — Sat, 04 Oct 2008 14:13:21 -0000

Hey protosphere
Glad your back.
I don't pay much attention to newspaper articles because of possible misinterpretations but i do to Nortel Press releases prior to conference calls namely "Nortel announces preliminary view of 3rd Qtr. and revised full year 2008 outlook". If you go to the 4th paragraph of the release on page 1, it will confirm what I said... You can still retrieve that data as it is archived on their web site.
Since Sept. 17, credit situations around the world have drastically tightened so i would not be surprized if Nortel's Q4 Cash numbers come in lower than 2.9 B because of delivery push outs, etc.
Hopefully they can do the numbers they said .....

Re: Nortel’s Market Cap Sinks Below $1-billion

protosphere — Sat, 04 Oct 2008 13:30:50 -0000

"Nortel expects their cash to be about 2.6 B for 3rd Qtr. and 2.9B for Q4 but that was on Sept. 17th. "

Ummmm nope. you misread or mis-state here, They expect between 2.6 and 2.,9B cash at the end of Sept/Q3. Not that this will increase by year end! That is wrong/false!

"Pavi Binning, the company's chief financial officer, said Nortel's cash balance at the end of this month could be as low as $2.6-billion, or about $400-million less than at the end of June."
https://secure.globeadvisor.com/servlet/Article...

Re: Nortel’s Market Cap Sinks Below $1-billion

protosphere — Sat, 04 Oct 2008 13:15:47 -0000

Nortel's engineers are top notch indeed, yes... this is true

Even John Chambers highly praised Nortel's engineer to the hilt a few years ago on in an interview with Report on Business. He also stated at the time there are plenty yesteryear darlings that are simply gone today.

I agree, their engineers they keep axing are not the bad guys.

However I have my reservations about the execs in their crazy levelsthat are still there Owens termed "difficult to find" and the media termed "remaining silent under their counsel's advise" with fraud trials looming as the green team struggles and endlessly contradicts to what they are fed by god knows who in this mass orchestrated epic =)

Re: Nortel’s Market Cap Sinks Below $1-billion

protosphere — Sat, 04 Oct 2008 12:57:19 -0000

Name calling "bobbing for apples", personally attacking "language problems". impose mean spirited ill will towards employees, etc., is all unwarranted where I suggest you should assess your own cognition process.

How can you say "I have inside sources and they have publicly stated they have this much Cash". How can you post insults and bizarre fabrication contrary to popular knowledge claiming inside info.

Relative to yes4's endlessly proven insight, the market begs to differ with you claiming we are "just 2 bashers" than proven critics at 20 cents presplit over the years you argue with us stalking us everywhere we post and personally attacking with many IDs..

Your claim is false and misleading yet again:
"3.5 Billion in Cash.
4.5 Billion in Debt.
claiming "These are the facts"

These are not the facts, even your colleague above has even corrected you with $2.6 to $2.9B cash by end of September as per Nortel. So who at Nortel fed you 3.5 because I do not believe you?

$3.5B minus 2.6 is almost a cool billion, get your facts straight before you post.

I don't know who your "inside contacts" are at Nortel but they have not provided you with reliable information or you mislead with intent, neither of which is not good for readers to remotely take what you claim seriously unethically cheerleading this dog like a relentless Nortel-holic over the years..

Re: Nortel’s Market Cap Sinks Below $1-billion

broadbandbill — Sat, 04 Oct 2008 12:57:09 -0000

Do not recollect anyone ever say anything negative about Nortel’s engineers on this blog; they are the real world-classers…--bb

Re: Nortel’s Market Cap Sinks Below $1-billion

Clint — Sat, 04 Oct 2008 09:27:20 -0000

Hey Bobbing for apples.
You and protountypical are just two bashers.
Come out and say so.
All you two can do is pine for NT bankruptcy so people can be thrown out on the street.
You don't care about the people that work there.
You two are a disgrace.
Nobody takes you two seriously.
You offer nothing concrete or reliable.
Bottom line.
Company does 8 to 10 billion in sales annually.
Huge installed customer Bases.
3.5 Billion in Cash.
4.5 Billion in Debt.
These are the facts.
Anybody in their right mind can see what options they have, what leverage they have and what negatives they have.
I personally think they still have too many employees. They need to get rid of the deadwood at managment levels and employees who make no contribution. Such as admin, paper pushers, SG@A, and engineers stuck on projects that are not currently making money or have an uphill battle to even make money in the future.

Re: Nortel’s Market Cap Sinks Below $1-billion

exnt — Sat, 04 Oct 2008 08:05:23 -0000

I think we need to apply the "Britney Spears Rule" to Nortel. Remember when Britney was so obviously mentally ill that some publications stopped reporting on her, our of pity and/or ethics? Now that Nortel is below $1B, lets just agree that they are a pitiful company with horrible execs but a lot of decent working level people. Lets just stop the bashing, it's like kicking a dead horse. just an idea..........

Re: Nortel’s Market Cap Sinks Below $1-billion

The Mole — Sat, 04 Oct 2008 03:48:25 -0000

Expect the unexpected , nothing is certain in this world but the days of Nortel as is are gone . It's all 4 sale , sold as a whole the new owners (maybe Arab money ) will then split it up . Management Buy-out of Enterprise , MEN to Huawei or ZTE , Wireless assets to Ericsson . LG buyout LG-Nortel .

Re: Nortel’s Market Cap Sinks Below $1-billion

Observer — Sat, 04 Oct 2008 02:43:28 -0000

In the first few days of each quarter, employee sales via the stock purchase plan occur. Most people usually take their free 15% gain and walk. Should be a bounce come Monday because of the bailout.

Re: Nortel’s Market Cap Sinks Below $1-billion

Observer — Sat, 04 Oct 2008 02:40:28 -0000

Is Nortel ripe for the picking? Putting aside the $4.5-billion of debt and the money-losing businesses, does it make sense for someone to snap up Nortel given its declining value?

It does but it won't happen. Few companies have the cash in this environment and cash is a premium so giving that up wouldn't be smart. All things change accordingly during crises. Nortel isn't insolvent like most financial companies and does have hard assets and future value. As the slowdown continues, there will be lots of value investors that come out of the woodwork at these levels. The economy will recover in a few years. Nortel would be wise to take more shares out of float just to cut down on the shorting/hedging community. Issuing all those shares for the settlement wasn't a good idea.

Re: Nortel’s Market Cap Sinks Below $1-billion

more — Fri, 03 Oct 2008 23:41:43 -0000

I hear PingTel is considering buying Nortel in a 10 for 1 reverse stock swap :-)

Re: Nortel’s Market Cap Sinks Below $1-billion

Eric B — Fri, 03 Oct 2008 22:30:29 -0000

good point Broadbandbill. I forgot about SOA.

Re: Nortel’s Market Cap Sinks Below $1-billion

MyHeadHurts — Fri, 03 Oct 2008 22:21:49 -0000

Food for thought... http://papers.ssrn.com/sol3/papers.cfm?abstract...

A good analysis of the effect of reverse splits on companies futures.

Re: Nortel’s Market Cap Sinks Below $1-billion

Another Nortel Watcher — Fri, 03 Oct 2008 21:45:24 -0000

Eric B,

I agree with your main point. MZ and his cronies (including Richard Lowe) don't know much about current telecom beyond the buzzwords and what they read in the trade magazines and that's why they're floundering. They don't know enough to make the right strategic decisions and they don't know enough to maintain the respect of the tier-1 customer base.

Nortel is dead unless these guys are flushed.

Re: Nortel’s Market Cap Sinks Below $1-billion

broadbandbill — Fri, 03 Oct 2008 21:42:38 -0000

Eric B,

“Other areas besides telecom’…is exactly what was represented to the CSO, CTO and CEO; a comprehensive SOA-based telecom software architecture that went way (WAY, WAY) over their heads…Now, the CTO is all SOA-friendly w/IBM giving away the store and smart money knows it. IDIOT!!!!--bb

Re: Nortel’s Market Cap Sinks Below $1-billion

yes4aapl — Fri, 03 Oct 2008 21:05:58 -0000

Thank you Proto for your hard work and sharing your DD on NT with us.
Chart does not lie.
NT fell down from $1200 to $2!
What is to argue about?
When I said in 2004 that NT would be sold for 99 Cents evry one /loong/ wanted to kill me.
Today it would be the dream price!
$9.90 after rsplit.
and selling the best assets for what?
To resurrect CDMA?
CDMA is dying of natural causes.
Too bad that Mike Z decided to exit 3G.
GM 20% market share model did not work for NT.
GM Six Sigma kill innovation.
Every farmer knows that there is time to invest_plant the seeds before the harvest.
Mike Z failed many times on anything he tried!
I don't understand why he is still in charge of 33k employees and $3 bill in cash company?
Why CTO made so many wrong decisions?
What is he doing? What is his success he can put on his new resume?
Mike Z said at the beginning that he will risk his carrier by taking CEO position.
He was right. He risked and he lost credibility.
He will retire with shareholders money /and he knew that/
and look Proto who is bashing you on this board.
Clint and all his

aliases

* Realist
* SexyBeast
* Sexy Beast
* Plastered
* plastered
* Limeoid.
* Hogan
* Daniel
* JoeFriday
* Clint
Should we ask Clint why he posts with so many aliases?
Nope, let him play the monkey games.
Realist lol!

Re: Nortel’s Market Cap Sinks Below $1-billion

Eric B — Fri, 03 Oct 2008 21:00:44 -0000

Understand that he pushed IMS, WiMax and IPTV, but my point is that we needed to perhaps expand into some other areas besides telecom. I believe by not having a good solid background in telecom hurt Mike Z's judgement.

Same is happening with LTE, we are putting all our eggs in one basket. LTE is still 3+ years aways, and WiMax is already here.

Re: Nortel’s Market Cap Sinks Below $1-billion

Nortel investor — Fri, 03 Oct 2008 19:44:18 -0000

OK ... a beer it is.

Re: Nortel’s Market Cap Sinks Below $1-billion

Nortel investor — Fri, 03 Oct 2008 19:40:35 -0000

WOW
THis sounds like a good time to go to the fridge and get a beer.....
Just a few thoughts...........
Nortel expects their cash to be about 2.6 B for 3rd Qtr. and 2.9B for Q4 but that was on Sept. 17th. before the banking crisis blew up. So now , who knows..... That is why i think MEN will never sell and it is restructuring time again...
As for their pensions, they have made significant improvements over the last 3 years in this area...
year 2006 it was $1,965 Bil deficet
Q2/2008 it was $1,012 ' ' ' . So they are no longer on the honor roll for the worst pension plan deficet in Canada. Still have a ways to go, but considerable progress over 3 years.
That's where cash has been going over the last 30 mths. is paying off the liabilities.

Re: Nortel’s Market Cap Sinks Below $1-billion

Clint — Fri, 03 Oct 2008 19:25:53 -0000

Check your facts photo...they do have at least 3.5 Billion in Cash. You would not know since you are just a basher. I have inside sources and they have publicly stated they have this much Cash.
Thing is they have 4.5 Billion debt.
Still, not too bad of a ratio.
You sound you like have a language problem.

Re: Nortel’s Market Cap Sinks Below $1-billion

Clint — Fri, 03 Oct 2008 19:22:51 -0000

If somebody has deep pockets they can buy it.
It's all about who buys it.
Nothing more.
Nothing less.
Make no mistake.
It will either be sold, chopped up or shut down.
My money is still on it being sold.