Telecom equipment makers will be taking a beating this week with the Ericsson story and I'm sure Nortel will go down with it. I welcome the bad news as an opportunity to buy in and average down my average cost. Here's why:1. Nortel is heading down a good path with a new approach to IP telephony by hooking up with Dell and Microsoft - computer companies not phone companies. The promise of a single IP network for voice and data has been a big fat lie for business and it's time for the phone companies to be pushed aside now that MicroSoft in interested in voice. NT is right there with them.2. Nortel has settled regulatory troubles with OSC and SEC for relatively small fines.3. Zafirovski: Understands that the mess they are in represents an opportunity. Appointed to the National Security Telecommunications Advisory Committee (this is really big). Experienced in turnarounds. Quite young (53) and up to the challenge.4. 4G & WiMAx - longer term payoffs with higher early margins that the stuff they're hawking right now. Aiming to be ahead of the curve.5. Pavi Binning - A good person in an important position. Experienced in turnarounds.Hoping that this post can at least "Fool" some discussion.
I understand, you keep NT for a sentimental reasons. But just because this is a Canadian company, it does not mean it will go up. And I dont see how ould MSFT help NT to go up. MSFT does not need NT to do their work on IP telephony.I have been long on NT and I am sick and tired this company. I dont thing that 15 would be the right price to sell but anthing above 18 and the company goes from my portfolio.
The problem is really that they have too many shares outstanding. If and when they are profitable I hope they spend their money buying back some of their shares.Till that happens I think NT is not a good buy. -ubn
Too many shares outstanding, well I just helped out this week.Sold 500, bought some Rim at 100. Then sold at 117. Beats holdind Nortel for more than 5 years I guess.should of done this sooner!Brian.
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