law1985's Comments RSS Syndication from SeekingAlpha.com http://seekingalpha.comuser/275262/comments http://seekingalpha.com/article/110212-how-worrisome-is-nortel-s-exploration-of-bankruptcy-protection?source=feed#comment-326417 326417
I am not sure that a potential interested acquiring party can afford to wait to buy assets from a forced liquidation. For instance, the US infrastructure spending stimulus, which includes broadband, will be implemented in 2009 and 2010, in order to participate a supplier needs to be ready yesterday.

I am not a fan of Mike Z....but he is a competent financial engineer. He needs to do what IBM did in the early 90s despite screaming employees, demanding pensioners and furious shareholders. Notice how quiet the debt holders are...

Management is also providing a lot of information. Preannouncements and financial details are forthcoming in a timely fashion. Furthermore, there is nothing wrong with press releases.



]]> Thu, 11 Dec 2008 11:47:46 -0500
I am not sure that a potential interested acquiring party can afford to wait to buy assets from a forced liquidation. For instance, the US infrastructure spending stimulus, which includes broadband, will be implemented in 2009 and 2010, in order to participate a supplier needs to be ready yesterday.

I am not a fan of Mike Z....but he is a competent financial engineer. He needs to do what IBM did in the early 90s despite screaming employees, demanding pensioners and furious shareholders. Notice how quiet the debt holders are...

Management is also providing a lot of information. Preannouncements and financial details are forthcoming in a timely fashion. Furthermore, there is nothing wrong with press releases.



]]> http://seekingalpha.com/article/106510-what-would-john-chambers-have-done-for-nortel?source=feed#comment-315117 315117 Tue, 25 Nov 2008 20:10:50 -0500 http://seekingalpha.com/article/105835-farm-real-estate-sector-headed-into-a-decline?source=feed#comment-306449 306449
With regards to Canadian farmland, far from being the cheapest in the world, it has risen dramatically in Alberta, Manitoba and Saskatchewan. As oil money dries up, so will the demand for western Canadian farmland.
For your information, per acre prices in Ontario (roughly $3500 per acre) are not that much lower than in Iowa.

Furthermore, Canadian farm debt is much higher than in the US, so there is significant risk that financing will be restricted and that will translate into lower prices per acre. As the cost of carrying the land increases, the net return shrinks.

Falling crop prices are less of an issue because inputs, such as fertlizer and fuel, have also declined dramtically.

Crop land is a solid long term investment but its value is linked to the capital markets and cannot be expected to be immune from the chaos...



]]> Fri, 14 Nov 2008 19:48:24 -0500
With regards to Canadian farmland, far from being the cheapest in the world, it has risen dramatically in Alberta, Manitoba and Saskatchewan. As oil money dries up, so will the demand for western Canadian farmland.
For your information, per acre prices in Ontario (roughly $3500 per acre) are not that much lower than in Iowa.

Furthermore, Canadian farm debt is much higher than in the US, so there is significant risk that financing will be restricted and that will translate into lower prices per acre. As the cost of carrying the land increases, the net return shrinks.

Falling crop prices are less of an issue because inputs, such as fertlizer and fuel, have also declined dramtically.

Crop land is a solid long term investment but its value is linked to the capital markets and cannot be expected to be immune from the chaos...



]]> http://seekingalpha.com/article/106021-nortel-networks-5-big-unanswered-questions?source=feed#comment-306401 306401 CCAA) in Canada.

Depending on 2009 sales, the earliest timing would be late 2010. There needs to be a sense of immediacy regarding financing shortfalls to justify bankruptcy. The bankruptcy mechanisms are not meant to be abused by viable solvent companies simply seeking to reduce their debt load.

As matter of fact, Nortel could probably actively buy back some of its outstanding debt and retire much of it at a cost of less than 80 cents on the dollar. The resulting tax free gain and savings in interest would provide more bang than a share buyback.

Your tone sounds desperate. Why not focus on CanWest, Air Canada or Teck Cominco? At least those companies are nearer to insolvency than Nortel.


]]> Fri, 14 Nov 2008 17:24:47 -0500 CCAA) in Canada.

Depending on 2009 sales, the earliest timing would be late 2010. There needs to be a sense of immediacy regarding financing shortfalls to justify bankruptcy. The bankruptcy mechanisms are not meant to be abused by viable solvent companies simply seeking to reduce their debt load.

As matter of fact, Nortel could probably actively buy back some of its outstanding debt and retire much of it at a cost of less than 80 cents on the dollar. The resulting tax free gain and savings in interest would provide more bang than a share buyback.

Your tone sounds desperate. Why not focus on CanWest, Air Canada or Teck Cominco? At least those companies are nearer to insolvency than Nortel.


]]> http://seekingalpha.com/article/98568-nortel-is-it-time-for-a-change-at-the-top?source=feed#comment-275245 275245 Mon, 06 Oct 2008 21:25:55 -0400