Nortel Faces Delisting by NYSE

By Kathleen A. Martin  |  Posted 2008-12-15 Email Print this article Print
 
 
 
 
 
 
 

WEBINAR: Event Date: Tues, December 5, 2017 at 1:00 p.m. ET/10:00 a.m. PT

How Real-World Numbers Make the Case for SSDs in the Data Center REGISTER >

The Canadian network and telecommunications equipment manufacturer will be taken off the exchange if its shares do not return to more stable prices within six months. Technology stocks continue to struggle in the poor economy.

Nortel Networks faces delisting from the New York Stock Exchange (NYSE) as shares continue to bleed value. For the second week of December, the Canadian network and telecommunications equipment manufacturer’s stock lost another 35 percent to close at 40 cents a share.

 

Because Nortel’s stock has closed under $1 per share for 30 consecutive days, NYSE notified the Canadian networking and telecommunications equipment company Dec. 11 that it faced delisting if its stock price did not return to acceptable levels within six months.

 

The delisting warning is just the latest bad news to hit Nortel, which once stood as Canada’s largest corporation. Last month, the company announced a $3.4 billion quarterly loss. As a result, Nortel announce it would lay off more than 1,300 employees.

 

Nortel’s trouble reflects the continuing spillover effect of the weak economy on the technology sector. The Dow Jones Industrial Average closed the second week of December up 65 points, capping a rally that has seen 1,200 point gain since Thanksgiving. However, the general economy continues to plod along at a sluggish pace not seen since the Great Depression, dampening several sectors including technology.

 

Polycom (NASDAQ: PCLM) hit a 52-week low, dropping 19 percent—or $2.74—to close at $14.42. Despite previous assertions of brisk business despite the recession, Polycom representatives at the last week’s Barclays Technology Conference said they’re witnessing a "slowing in video and voice."

 

FalconStor (NASDAQ: FALC) continues to be a Wall Street favorite, posting a 14 percent gain for the week. FalconStor announced a new deduplication solution on Dec. 1, which has impressed analysts and investors.

 

The office supply retailers sat at both ends of the market on Friday with Staples (NASDAQ: SPLS) closing down more than 8 percent on news of store closures. Investors viewed the closing of underperforming Office Depot stores (NYSE: ODP) as a positive sign resulting 14 percent gain for the week.

 

A final round of earnings calls for 2008 are scheduled for this week. Adobe Systems (NASDAQ: ADBE) is scheduled to announce their Q4 earnings Dec. 16. The call is anticipated to carry additional news of the recent layoff of 600 employees announced on financial message boards.

 

Research in Motion (RIMM) and Oracle (NASDAQ: ORCL) will announce their quarterly earnings on Dec. 18.

 

The following are the stock prices for leading publicly traded technology vendors and solution providers.

Leading Technology Vendor Stocks 

Company 

12/5

12/12

Difference

Adobe Systems (ADBE) 

21.66

22.43

3.40%

Adtran (ADTN)

13.45

14.11

4.70%

Alcatel-Lucent (ALU)

1.51

1.64

7.90%

AMD 

2.13

2.28

6.60%

Apple (AAPL) 

94

98.27

4.30%

Arrow Electronics (ARW) 

14.52

16.38

11.40% 

Avnet (AVT) 

15.01 

16.2 

7.30%

BMC Software (BMC) 

24.18

24.71

2.10%

CA 

16.06

17.45

8.00%

Canon (CAJ) 

28.06

29.5

4.90%

Check Point (CHKP) 

19.01

19.04

0.20%

Cisco Systems (CSCO) 

15.94

16.99

6.20%

Citrix Systems (CTSX)

25.12

23.03

-9.10%

Data Domain (DDUP) 

17.39

18.32 

5.10%

Dell 

10.71

11.48

6.70%

EMC 

10.81

10.77

-0.40%

FalconStor (FALC) 

2.67

3.13

14.70%

Foundry Networks (FDRY)

15.38

15.7

2.00%

Google (GOOG) 

283.99

315.76

10.10%

HP (HPQ) 

33.53

35.97

6.80%

IBM 

80.59

82.2

2.00%

Ingram Micro (IM) 

11.21

11.81

5.10%

Intel (INTC) 

13.29

14.75

9.90%

Juniper Networks (JNPR) 

16.3

17.46

6.60%

Lexmark (LXK) 

25.61

26.71

4.10%

McAfee (MFE) 

28.1

29.5

4.70%

Microsoft (MFST) 

19.87

19.36

-2.60%

Motorola (MOT) 

4.36

4.19

-4.10%

NetApp (NTAP) 

12.87

13.54

4.90%

Nokia (NOK) 

13.39

15.37

12.90%

Nortel Networks (NT) 

0.55

0.4

-37.50%

Novell (NOVL)

4.05

3.84

-5.50%

Oracle (ORCL) 

16.32

16.84

3.10%

Polycom (PLCM)

17.16

14.42

-19.00%

Rackspace (RAX) 

6.35

5.95

-6.70%

Red Hat (RHT) 

12.18

11.65

-4.50%

Research in Motion (RIMM) 

39.49

38.82

-1.70%

Salesforce.com (CRM) 

31.16

31.95

2.50%

SAP 

33.91

33.82

-0.30%

ScanSource (SCSC) 

18.14

18.36

1.20%

Seagate Technology (STX) 

4.52

5.27 

14.20%

Sun Microsystems (JAVA)

3.49

4.09

14.70%

Sybase (SY) 

24.43

23.72

-3.00%

Symantec (SYMC) 

12.04

12.49

3.60%

Synnex (SNX) 

10.01

9.46

-5.80%

Tech Data (TECD)

16.07

16.66

3.50%

VeriSign (VRSN) 

20.34

21.29

4.50%

VMWare (VMW) 

23.3

24.74

5.80%

Websense (WBSN) 

16.9

15.53

-8.80%

Xerox (XRX) 

6.99

7.75

9.80%

 

 

Leading Solution Provider Stocks

 

Company

 

12/5

 

12/12

 

Difference

 

Accenture

 

28.27

 

28.59

 

1.10%

 

Acxion

 

7.1

 

7.58

 

6.80%

 

ACS

 

40.2

 

39.21

 

-2.50%

 

Atos Origin

 

15.72

 

17.4

 

10.70%

 

ADP

 

37.59

 

38.27

 

1.80%

 

BT Global Services

 

20.74

 

20.74

 

0.00%

 

CAIC

 

42.81

 

41.4

 

-3.30%

 

Cerner Corp

 

34.88

 

38.66

 

10.80%

 

CGI Group

 

7.54

 

7.11

 

-5.70%

 

Citigroup TSG

 

7.71

 

7.7

 

-0.10%

 

CSC

 

28.83

 

31.33

 

8.70%

 

Convergys

 

5.97

 

6.29

 

5.40%

 

Fiserv

 

33.19

 

33.53

 

1.00%

 

Harris

 

32.99

 

36.13

 

9.50%

 

Insight North America

 

4.03

 

4.47

 

10.90%

 

ITT Defense

 

42.31

 

42.48

 

0.40%

 

Lockheed Martin

 

80.19

 

77.8

 

-3.00%

 

ManTech

 

50.79

 

51.16

 

0.70%

 

McKesson

 

33.59

 

36.53

 

8.80%

 

Metavante

 

17

 

16.71

 

-1.70%

 

Northrup Grumman

 

40.35

 

40.5

 

0.40%

 

NTT Data Corp

 

25.35

 

25.68

 

1.30%

 

Office Depot

 

2.25

 

2.57

 

14.20%

 

OfficeMax

 

6.39

 

6

 

-6.10%

 

PCConnection

 

5.26

 

4.98

 

-5.30%

 

PCMall

 

4.48

 

4.4

 

-1.80%

 

Perot Systems

 

12.69

 

12.42

 

-2.10%

 

QinetiQ

 

167.25

 

163

 

-2.50%

 

Raytheon Technical Service Company

 

49.55

 

50.8

 

2.50%

 

Science Applications International

 

18.12

 

18.88

 

4.20%

 

Siemens

 

59.39

 

63.92

 

7.60%

 

SRA International

 

15.13

 

15.31

 

1.20%

 

Staples - North American Delivery

 

18.46

 

16.92

 

-8.30%

 

Systemax

 

10.62

 

10.81

 

1.80%

 

Tata Consultancy Services

 

521.7

 

482.25

 

-7.60%

 

Unisys

 

0.59

 

0.6

 

1.70%

 

WiPro Infotech

 

6.67

 

7.65

 

14.70%

 

 

 

 

 
 
 
 
 
 
 
 
 
























 
 
 
 
 
 

Submit a Comment

Loading Comments...
























 
 
 
 
 
 
 
 
 
Thanks for your registration, follow us on our social networks to keep up-to-date