Om Malik mentions Nortel’s reverse stock split:
First it was Ciena, and now Nortel is doing a reverse split, hoping to add some respectability to their stock price. The beleaguered telecom equipment maker which has been constantly resetting itself since the telecom bust, is going for 1-for-10 reverse split. The current share price is about $2.15, and after the split, the price will be $21.50 a share. The total share count will decline from around 4.34 billion to about 505 million shares.
I worked for Nortel a few years agoand it didn’t appear to be a well run company then, but at the height of the boom it could do no wrong. But since then it can only do wrong. From executives benefitting immensely even while they constantly delay financials and restate earnings, it must be time to put the company out of its misery.
As a shareholder who bought the stock at $20 only to see it fall as low as a dollar, it’s clear to me that the company just doesn’t have a clue. And it’s also clear that the interests of shareholders are the least of their concerns.
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