Judging from the bubbly reaction to Nortel's first-quarter results this week, it's easy to believe investors and analysts are willing to give the telecom equipment maker yet another chance. The stock is up and analysts are touting their "buy" ratings. It is almost as if everyone is prepared to put Nortel's accounting scandal into the past tense. As much as I hate being a party pooper, investors need to look beyond Nortel's happy-talk about being bullish and having momentum. After being distracted for nearly two years, Nortel's biggest challenge is weaknesses within its technology portfolio. As much as the company likes to talk about IP technology, it's nowhere near as vibrant a player as Cisco, Juniper and Alcatel, who have positioned themselves well with a series of strategic acquisitions. Nortelmust do more than buying a services company focused on the U.S. government - a deal described as "puzzling" by a senior executive at the Canadian Telecom Summit who spent years providing the U.S. government with telecom services. Before anyone claims Nortel has turned the corner, they should recognize there are plenty of strategic hurdles ahead.