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%
|