Serraphin

Has Nortel Become a Takeover Target?

A stock is punished for poor performance. A stock is trampled when the market wants its exectuive replaced. The stock gets buried to penny status when the board refused to respond to the markets clear call for change. Why Mike Z. continues to remain at the helm is beyond me. It took the CTO to convince him to stop putting 80% of the RnD budget into legacy technology. Why did it take several years and a CTO to explain the obvious to the Chief Executive. The board needs to fulfill their fiduciary duty and begin to protect the share holder. It needs to flaten the corporate structure, it needs to hire a hungary CEO with his compensation HEAVILY tied to stock performance so he gets wealthy if the share holder gets wealthy. Secondly Nortel needs to decide if its a Unified Communications integrater or a telecom. Are they keeping the telecom portion out of nastalgic loyalty to Northern Telecom? With the current political correctness regarding prudent energy policies why are they not more aggressively selling/pushing their technologies to energy conscious companies. Google for instance utilizes solar panels on many of buildings to reduce power consumption. If Nortel's product line really reduces power consumption over Cisco why are they not making any headway. Poor execution from C-suits to the middle tier is why. Change needs to start at the top and an aggressive and competitve culture needs to be revitalized from within the company before the final nail is placed in the Nortel coffin.