Nortel Networks (fka NRTLQ)

[postyle]

Good question, nnelson !

What will a solid auction price do to share prices??

Right now, Google's stalking horse bid for $900 million is already a "solid" price for this last major auction of Nortel's assets. And the bidding could go a lot higher. $2 billion? $5 billion? That would be crazy, but it's not impossible.

Shareholders of the common stock need to keep in mind that there are a lot of entities out there claiming Nortel owes them money. According to a Bloomberg article 2 days ago, Nortel's European affiliates claim they are owed $10.2 billion (USD) by Nortel. And Nortel's bonds are trading for less than 28 cents on the dollar... not a good sign for stock owners, since we all know bondholders get paid first in these situations.

Of course, these "Q" pennies can spike and jump on the slightest of news. Lots of money to be made (or lost). I just wouldn't want to be the one holding the bag when the show is over.