Nuvei Corp T.NVEI

Nuvei Is Now The New "Nortel Networks"

[NLMoose]

For the last few years, Nuvei Corporation has become a tech marvel for the TSX.

However, after missing their profit forecast, the stock plummeted over 35% from $40.00 a share to just over $25.00 a share.

Keep in mind the same thing happened 23 years ago when Nortel Networks just missed their profit forecast and the stock plummeted dramatically, and then gradually descended to "penny stock status" no thanks to Chinese interference.

Now I'm worried that Nuvei is headed for the same gloomy path as Nortel Networks as its a tech marvel next minute, and then bankrupt the next.

In short, Nuvei is now the new "Nortel".

[DRiPInc]

Nice alarmist post.  The real issue here is the coupling of their high debt load with the highest interest rates we've experienced in 20+ years.  They stated they will be tackling their debt moving forward and if the dividend gets in the way it will be reversed. 

[NLMoose]

Not good enough as some investment rating firms, notably Goldman Sachs and Will Nance, are taking notice of Nuvei's financial incompetence, dramatically downgraded the stock, and even lowered the target price.

[NLMoose]

If Nuvei keeps racking up for debt, they will be just as worse as the banks where "Debt to Equity" ratios are well over 100%. In fact, when I took an Accounting course at Saint Mary's University during the mid 1990s, I learned from my Professor, Tammy Crowell, that "Debt to Equity" ratios well over 100% for banks and financial institutions are actually normal. As for