This autumn has not been kind to name-brand companies like AIG, General Motors, Lehman Brothers, and Merrill Lynch. But the tech industry seemed to be cruising along without any major disasters--until Monday that is.
Venerable networking giant Nortel Networks announced a third-quarter loss of $3.4 billion, or $6.85 per share. As of this writing, the company's stock is trading around 80 cents with a market cap just over $400 million. Yikes!
Why is a company that did over $10 billion last year worth so little? The primary reason is liquidity. Financial analysts estimate that the company is … Read more