Nortel Stock Drop Shows Trend Toward Cheap, Specialized

While many other stocks got some relief late last week due to the bailout news, Nortel’s stayed down. Beyond just corporate missteps at the vendor, this can be attributed to a fundamental shift by telcos away from “big iron” provided by the Alcatel-Lucents and Nortels of the world and toward cheap and specialized gear from the Huaweis of the world.