They need to find their parnters and their talent anywhere they can and make their investments anywhere it makes the most sense for the company. If their mission is to be good Canadians first and good businesspeople second, I'm afraid they have a conflict of interest.
When you're standing in pitch black darkness, it's hard to believe dawn will ever come. By bringing Alan Lutz in from the U.S. --- a manager with experience dealing with RBOCs --- I believe TM recognized the company's weaknesses and took the critical first step to shim the sinking beams. Lutz said it would take 100 days to put a plan in place and get the company moving in the right direction and by my calculations he has till the first part of September to deliver --- time I'm more than willing to give him.
Since Mr. Lutz joined NN seven weeks ago, the company has put out 16 press releases, an average of over 2 a week, with only one week having none. In the prior seven-week period there were 6 releases, and in the one before that only 3. Clearly, the current weakness can't be blamed on an inattentive public relations' department. More likely it's what Doug (I believe) suggested --- that sustained positive earnings and contracts with teeth, including RBOCs, are needed to turn the momentum around.
When you say, "The problem I see is that the company doesn't seem to comprehend the changes taking place in the industry and the long term strategies that will be needed for survival and success," I can't agree. I believe they've comprehended the changes in the industry and developed the right technology before their competitors. With the right management, this advantage will make the difference between mere survival and ultimate success.
Time will tell, and, as you know, I'm patient. I also increased my position 15% today.
Tomorrow, however, I'll be watching TXN. They announce before the open and have cc at 9:00 CDT.
Later --
Pat |
