Rumor has it that Nortel Networks (OTC: NRTLQ) will sell its enterprise division in the near future.

This would be part of a broader plan to break the company apart instead of trying to restructure its way out of bankruptcy. The company is planning to sell its CDMA and LTE wireless businesses to Nokia (NYSE: NOK) for $650 million -- the first unit sale since the January bankruptcy filing.

Continue reading Nortel could be dumping enterprise division

Nortel could be dumping enterprise division originally appeared on BloggingStocks on Wed, 24 Jun 2009 12:20:00 EST. Please see our terms for use of feeds.

Motorola (NYSE:MOT) may be the next large American technology company to go into bankruptcy. Telecom equipment maker Nortel, which has several related businesses, filed for Chapter 11 yesterday.

Motorola has two successful divisions. One of these makes home electronic devices including set-top boxes. The other provides telecom infrastructure to large enterprises and governments. Each of them has had positive operating income over the last several quarters.

Motorola's handset division, however, is taking on water quickly. It will cut another 4,000 people this year. It was going to be spun off from the rest of the company, but its sales fell so quickly that the option was killed. Now, a bankruptcy judge may do what the company would not -- liquidate the handset business completely.

Continue reading The end of Motorola (MOT)

The end of Motorola (MOT) originally appeared on BloggingStocks on Thu, 15 Jan 2009 09:15:00 EST. Please see our terms for use of feeds.

Continue reading Old fashioned businesses that still make money, 5 easy ways to beat money stress & fame in family - Today in Money 1/15

Old fashioned businesses that still make money, 5 easy ways to beat money stress & fame in family - Today in Money 1/15 originally appeared on BloggingStocks on Thu, 15 Jan 2009 09:12:00 EST. Please see our terms for use of feeds.

I have stated numerous times that in our system of capitalism, killing a company is almost impossible to do. It just doesn't happen very often, especially with older companies with deep roots.

Years of losses, shrinking markets, and a failed business strategy matter little. If there is a will, there is a way. Until the credit crisis in November, there was always a way to raise needed capital to keep the dream alive.

A great example of this is Nortel Networks Corporation (NYSE: NT). The giant telecommunication networking firm was a darling for investors during the dot-com boom. In early 2000, the stock peaked at close to $1,000 per share on a split adjusted basis.

As the crash unfolded, NT collapsed. By the end of 2002, NT was a stock on life support and trading for pennies a share (pre split). At the time, the company was bleeding cash and facing an entirely different market for its products and services.

Continue reading Nortel can't cheat the Reaper any longer

Nortel can't cheat the Reaper any longer originally appeared on BloggingStocks on Wed, 14 Jan 2009 15:39:00 EST. Please see our terms for use of feeds.

Nortel Networks Inc.

Continue reading Nortel files for Chapter 11 bankruptcy protection

Nortel files for Chapter 11 bankruptcy protection originally appeared on BloggingStocks on Wed, 14 Jan 2009 09:48:00 EST. Please see our terms for use of feeds.

Sirius XM Radio

Continue reading Sirius XM shareholders OK reverse stock split -- it's not going to help

Sirius XM shareholders OK reverse stock split -- it's not going to help originally appeared on BloggingStocks on Fri, 19 Dec 2008 09:39:00 EST. Please see our terms for use of feeds.

It definitely looks like M&A activity will decline in 2009. What's more, it appears that private financings and public offerings will continue to remain lackluster.

This is bad news for investment banks. However, some of these operators are finding ways to maneuver around by focusing on restructuring work.

Perhaps one of the biggest beneficiaries is Lazard Ltd (NYSE: LAZ).

In fact, this week the firm snagged Timothy R. Pohl, the co-head of restructuring practice at Skadden, Arps, Slate, Meagher & Flom.

Pohl will certainly be busy as Lazard is currently working on the bankruptcies of Lehman Brothers and VeraSun.

This week, Lazard also got several new plumb assignments. The firm is advising Nortel Networks (NYSE: NT) on restructuring options, and other new clients include Tribune and even the United Auto Workers.

Of course, with the protracted credit crunch and the declining global economy, we'll likely see more leveraged companies hitting the wall, providing much more business for Lazard.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Streetsmart Guide to Short Selling: Techniques the Pros Use to Profit in Any Market. He is also the founder of BizEquity, a valuation website.

Lazard: Feasting on the bankruptcy boom originally appeared on BloggingStocks on Fri, 12 Dec 2008 12:05:00 EST. Please see our terms for use of feeds.

The New York Stock Exchange has told Nortel (NYSE: NT) that it may face being delisted. According to The Wall Street Journal, the telecom equipment firm will get kicked out "if it cannot bring its share price above the required $1 minimum in the next six months."

Delisting has a lot of problems beyond humiliation. Companies traded on the pink sheets or bulletin board cannot be held by most institutional investors. Stocks that trade in the pennies often face wild price swings as day traders bounce them around.

Who would have thought it would come to this? Many of America's most famous public companies could be up against being booted from the two major stock markets. The list is very long and it includes Sirius XM (NASDAQ: SIRI), Fannie Mae (NYSE: FNM), Ford (NYSE: F) and AIG (NYSE: AIG). The first two have already been below $1 for a fairly long period. AIG and Ford have gotten close.

What can be done? The current market drop, seen through the eyes of the exchanges, is an emergency. NYSE and NASDAQ face losing some of their signature listings, but they have an option. They could simply suspend some of their rules and allow companies to stay listed even if they do not meet the current requirements. The modification could be set for a year, at least initially.

If the exchanges alter the rule to keep some of their listed companies, who gets hurt? Probably no one. Rather, the firms in trouble and their shareholders get helped.

Douglas A. McIntyre is an editor at 247wallst.com.

Nortel (NT) may face delisting, along with a bunch of other companies originally appeared on BloggingStocks on Fri, 12 Dec 2008 10:00:00 EST. Please see our terms for use of feeds.

Continue reading Closing Bell: Stocks slide amid unemployment, banking woes; COST, LULU, NT down, AMLN, LLY gain

Closing Bell: Stocks slide amid unemployment, banking woes; COST, LULU, NT down, AMLN, LLY gain originally appeared on BloggingStocks on Thu, 11 Dec 2008 16:20:00 EST. Please see our terms for use of feeds.

Nortel (NYSE: NT), the communications equipment maker, is one of the largest companies in Canada. Like a lot of other firms that have a balance sheet full of debt, it will try to restructure what it owes to its creditors. If that doesn't work, it is looking at going into Chapter 11 and a lot of those creditors will not get what they were expecting when they made their loans in the firs place.

According to The Wall Street Journal, "The move comes as the Toronto-based company grapples with plummeting sales for its wireless gear and as the credit crunch hobbles the sale of key assets."

The news is telling. Being in the wireless business used to be a great position. Cellular systems were expanding rapidly. In many cases handsets were even replacing landlines. The opportunity for growth seemed nearly limitless.

But there have been signs that even a hot industry like wireless can be undermined by a recession. Nokia (NYSE: NOK) has warned that handset sales will be down next year. Global growth may slow to nothing even when emerging markets like China and India are figured in. Not so long ago, companies like Nortel and Alcatel-Lucent (NYSE: ALU) had reasonable prospects even if they were going through period of cuts to save costs and make product development and marketing more efficient.

The wireless business was considered one of the most significant global growth industries. Until recently that is.

Douglas A. McIntyre is an editor at 247wallst.com.

A bankruptcy at Nortel (NT)? originally appeared on BloggingStocks on Wed, 10 Dec 2008 09:03:00 EST. Please see our terms for use of feeds.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• Agilent Technologies Inc. (NYSE: A) topped estimates but offered an outlook below expectations.
• Best Buy Co. (NYSE: BBY) warned that it many not be able to maintain its earnings momentum.
• Charlotte Russe Holding Inc. (NASDAQ: CHIC) was upgraded because of its growth potential.
• Focus Media Holding Ltd. (NASDAQ: FMCN) shares tumbled after it reported Q3 numbers.
• HLS Systems International (NASDAQ: HOLI) earnings prospects and management impressed an analyst.
• JCPenney Co. Inc. (NYSE: JCP) reported a lower Q3 profit and lowered its guidance due to the recession.
• KKR Financial Holdings (NYSE: KFN) disappointing Q3 results led to analyst downgrades.
• MercadoLibre Inc. (NASDAQ: MELI) doubled its Q3 profit and beat earnings expectations.
• Nortel Networks Corp. (NYSE: NT) swung to a Q3 net loss and unveiled further restructuring measures.
• Perry Ellis International Inc. (NASDAQ: PERY) posted preliminary Q3 results and lowered its outlook.
• Siemens (NYSE: SI) Q4 net loss widened and it warned about meeting its profit target for the year.
• Starbucks Corp. (NASDAQ: SBUX) Q4 earnings were hurt by restructuring costs, revenue rose slightly.
• Toll Brothers Inc. (NYSE: TOL) posted dismal Q4 results and declined to offer guidance for next year.
• Tyson Foods Inc. (NYSE: TSN) solid Q4 results fell short of estimates and it offered a shaky outlook.
• Wells Fargo & Co. (NYSE: WFC) earnings prospects following its equity offering led to an analyst's upgrade.

Continue reading Earnings highlights: Starbucks, Best Buy, JCPenney, Agilent, Wells Fargo and others

Earnings highlights: Starbucks, Best Buy, JCPenney, Agilent, Wells Fargo and others originally appeared on BloggingStocks on Sat, 15 Nov 2008 15:40:00 EST. Please see our terms for use of feeds.

Continue reading Closing Bell: Dow ends down despite China; ACAS, AIG, GM, NT decline, UPS gains

Closing Bell: Dow ends down despite China; ACAS, AIG, GM, NT decline, UPS gains originally appeared on BloggingStocks on Mon, 10 Nov 2008 16:20:00 EST. Please see our terms for use of feeds.

Continue reading Before the bell: Stocks to start higher; C, AIG, GM, F, NRG, C, NT, SBUX, WFC, STP, ANF ...

Before the bell: Stocks to start higher; C, AIG, GM, F, NRG, C, NT, SBUX, WFC, STP, ANF ... originally appeared on BloggingStocks on Mon, 10 Nov 2008 08:15:00 EST. Please see our terms for use of feeds.

Continue reading Before the bell: Another slump expected; VZ, GS, GM, MS, PEP, X ...

Before the bell: Another slump expected; VZ, GS, GM, MS, PEP, X ... originally appeared on BloggingStocks on Mon, 27 Oct 2008 08:08:00 EST. Please see our terms for use of feeds.

Continue reading Before the bell: Big plunge expected; WB, WFC, C, BUD, IMCL, CC, AAPL ...

Before the bell: Big plunge expected; WB, WFC, C, BUD, IMCL, CC, AAPL ... originally appeared on BloggingStocks on Mon, 29 Sep 2008 08:18:00 EST. Please see our terms for use of feeds.

Analyst upgrades:

• Baird upgraded Adtran (NASDAQ: ADTN) to Outperform from Neutral based on valuation, new product cycles, and confidence in 2H08 results.
  
• Morgan Stanley upgraded shares of Repsol (NYSE: REP) to Overweight from Equal Weight as they believe the potential sale to Sacyr Vallehermoso SA could lead to a restructuring.
  
• Stanford lifted National Oilwell Varco (NYSE: NOV) to Buy from Hold citing valuation. In addition, the firm, which set a target of $70, thinks most of the drop in commodity prices is now over.
• Ryanair (NASDAQ: RYAAY) was raised to Hold from Sell at Societe Generale.
  
• Ann Taylor (NYSE: ANN) was upgraded at Piper to Neutral from Sell.
  
• Goldman added Illinois Tool Works (NYSE: ITW) to the Conviction Buy List.

• Argus downgraded shares of Constellation Energy (NYSE: CEG) to Hold from Buy post-close given the volatility in the stock as they can no longer recommend CEG until concerns over its capital and liquidity are resolved. Shares were also downgraded to Hold from Buy at Citigroup.
  
• Collins Stewart downgraded Lloyds TSB Group (NYSE: LYG) to Hold from Buy following the acquisition of HBOS (OTC: HBOOY) as they expect short-term weakness in the stock.

Continue reading Analyst calls: NOC, RYAAY, ANN, CEG, LYG, NT, PLD, DPS, WFMI ...

Analyst calls: NOC, RYAAY, ANN, CEG, LYG, NT, PLD, DPS, WFMI ... originally appeared on BloggingStocks on Thu, 18 Sep 2008 11:30:00 EST. Please see our terms for use of feeds.

Continue reading Closing Bell: Carnage spills to Main Street; NT, MS, AIG, SLB, all down; RAX up

Closing Bell: Carnage spills to Main Street; NT, MS, AIG, SLB, all down; RAX up originally appeared on BloggingStocks on Wed, 17 Sep 2008 16:24:00 EST. Please see our terms for use of feeds.

Analyst upgrades:

• Baird upgraded Dicks Sporting Goods (NYSE: DKS) to Outperform from Neutral based on valuation.
  
• Home Depot (NYSE: HD) was raised to Market Perform from Underperform by Morgan Keegan.
  
• Southwest Airlines (NYSE: LUV) was upgraded to Outperform from Market Perform by Avondale.

• BMO Capital downgraded Hasbro (NYSE: HAS) to Underperform from Market Perform due to valuation and macro headwinds.
  
• UBS dropped Darden Restaurants (NYSE: DRI) to Neutral from Buy because of slowing casual dining trends.
• Goldman Sachs dropped Affiliated Computer (NYSE: ACS) to Neutral from Buy.
  
• Goldman also downgraded Automatic Data Processing (NYSE: ADP) to Neutral from Buy.

• CIBC initiated Nortel Networks (NYSE: NT) with a Sector Performer rating based on what they see as the company's limited growth and margin prospects.
  
• Needham initiated Juniper (NASDAQ: JNPR) with a Hold rating, citing valuation.
  
• Blockbuster (NYSE: BBI) was initiated with a Hold by Needham, which would like to see if the company's turnaround is sustainable before becoming more constructive on the shares.

Analyst calls: HD, LUV, HAS, DRI, JNPR, BBI ... originally appeared on BloggingStocks on Tue, 19 Aug 2008 11:33:00 EST. Please see our terms for use of feeds.

RadiSys Corporation (NASDAQ: RSYS) makes system products for embedded computer applications used in the manufacturing automation, medical, transportation, telecommunications, gaming and test equipment markets. Products include embedded boards, board-level modules and chip-level components. The company also offers system integration and repair services. Clients include Nokia (NYSE: NOK), Nortel Networks (NYSE: NT) and IBM (NYSE: IBM).

The firm pleased investors last week, when it reported Q2 EPS of 14 cents and revenues of $97.6 million. Analysts had been expecting six cents and $87.8 million. The CEO attributed success to strong demand for the company's wireless and IP media server products. Management also guided Q3 EPS to 16-22 cents (nine cent consensus) and Q3 revenues to $98-$103 million ($91.2M consensus).

Continue reading RadiSys Corporation (RSYS): Shares cycle in bullish 'flag' pattern

RadiSys Corporation (RSYS): Shares cycle in bullish 'flag' pattern originally appeared on BloggingStocks on Mon, 04 Aug 2008 11:45:00 EST. Please see our terms for use of feeds.

Analyst upgrades:

• Jefferies upgraded shares of Akamai (NASDAQ: AKAM) to Buy from Hold on valuation, as they see a long-term buying opportunity following the recent correction. The firm maintains a $29 target.
• Moody's (NYSE: MCO) was upgraded to Overweight from Underweight at Lehman.
  
• Boyd Gaming (NYSE: BYD) was upgraded to Neutral from Underperform at Merrill Lynch.

• Jefferies downgraded shares of Nortel Networks (NYSE: NT) to Hold from Buy on concerns about the company's ability to hit expectations and drive margin expansion in the face of an eroding CDMA revenue stream. The firm lowered their target to $7.25 from $11.
  
• B. Riley cut Charlotte Russe (NASDAQ: CHIC) to Neutral from Buy on concerns about how well the company can perform with the interim management team, especially in light of the current retail environment. The firm lowered their target to $14 from $17. Roth Capital downgraded shares to Sell from Hold to reflect the management uncertainty and lowered their target to $9 from $14.
  
• Goldman cut Warner Music (NYSE: WMG) to Sell from Neutral and Deere (NYSE: DE) to Neutral from Buy.

• Banc of America expects top-line growth at Amgen (NASDAQ: AMGN) to be driven by Denosumab and for investors to look to the stock for biotech exposure following the potential acquisition of Genentech (NYSE: DNA). The firm started shares with a Buy rating and $70 target.
• Sirius Satellite (NASDAQ: SIRI) was initiated at JP Morgan with a Neutral rating.
  

Analyst calls: AKAM, NT, CHIC, WMG, DE, AMGN, SIRI ... originally appeared on BloggingStocks on Mon, 04 Aug 2008 11:30:00 EST. Please see our terms for use of feeds.