Barron's Backing on Nortel

Tags: Nortel Networks, Barron, Nortel Networks, Barron, Nortel Networks, Barron, NT
13 Dec 9:22pm

Nortel Networks Corpora

NT (NYSE)

Forecast has expired Ended: Sunday April 1, 2007

Target

$28.00 and above

$5.65 (25.3%)

Time Span:1-3mths

Final

$0.42

-$21.93 (98.1%)

Recommendation

Rating:Strong Buy

Risk:Moderate

Stop Loss Price:Unspecified

Final XP: 0

Target not reached

Analysis

They took the words right out of my mouth:

Barron's said that the Toronto-based Nortel's shares could jump by more than a third in the year ahead (2007) as long as restructuring finally starts to show results. And bigger gains could follow.

The paper cited CEO Zafirovski's efforts including:

i) cleaning up Nortel's balance sheet,

ii) overhauling the management team

iii) beginning a push to slash costs by $1.5 billion by 2008.

iv) Meanwhile, he's been exiting lower-margin business

v) and focusing on Nortel's strengths, such as gear for cellular networks using CDMA, or Code Division Multiple Access standard

I told you I wasn't the only one my friends. Think about the opportunity here.

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They're up 6% today alone on the news of laying off 2500 employees. I'm very happy with the stock and all the improvements they've made to the company.
Posted on Feb 8, 2007 @12:06pm
2,500 jobs can make such a big deal?
Posted on Feb 8, 2007 @12:28pm
Hello my friends! 2900 employees is about 10% of their task-force. It is not the size that really matters, it is more the move that pushed up the price. When management gets into the sensitive cost cutting of staff cutting, it shows that the company is on track and dedicated to their commitments, rather than just empty words.
Posted on Feb 8, 2007 @9:59pm
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