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Nortel Network Shares Hit Record Lows

Nortel Networks' shares dropped more than 28% in trading Wednesday, to 37 cents a share, before regaining a meager .0016 per share. Ouch!! That's pretty bad news.

In fact, this could be the worst performing stock in the tech sector. At least it's the worst I'm aware of. (If any readers know of a tech company's shares doing worse, please feel free to correct me in reader comments below.)

Shares were down from Tuesday's close at 52 cents. Horrible for a company with a 52-week high of $17.17.

The new 52-week low came as the phone equipment maker weighed its options for improving its finances and The Wall Street Journal reported that those options could include bankruptcy.

Company representatives said Nortel is focused on reorganizing and decreasing expenses and there aren't any immediate plans for a bankruptcy filing.

Either way, the company can blame some problems -- but not all -- on the poor economy. (And, the recession could stick around for another year, if Duke University's CFO Magazine Global Business Outlook Survey is any indication.)

Other factors have contributed to Nortel's troubles, too.

The company lost nearly $7 billion since 2005 while its competitors have lured customers away with faster technology. Its debt has been estimated around $6.3 billion. Its cash has been estimated near $2.3 billion.

Company leaders could still find ways to pull through, but Nortel doesn't have complete control over alternatives that would rely on other companies' purchases.

I don't envy their position. I'm no CFO, but I wouldn't bet my survival on anyone else's spending right now.

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