Wednesday, December 10, 2008

Nortel Explores Bankruptcy Protection

From today's Globe and Mail:

Nortel's already crushed shares plunged still further on the report, falling to 50 cents in early afternoon trading on the Toronto Stock Exchange, down 14 cents or nearly 22 per cent from Tuesday's close.

Nortel's spokesperson said no court filing was imminent, although the Toronto-based company has engaged several advisers to plan ahead, the newspaper reported.

This still comes as a shock to me. Back at the height of the tech boom when it was trading at $100+ per share, I remember somebody giving me unsolicited advice that I didn't need an investing strategy, all I needed to do was buy Nortel.


  1. That`s the problem. Everyone seemed to own Nortel. There becomes a point where there are no more buyers left. This happens to all big trends.
    It peaks and dies out.

  2. I can see it coming down from its peak, but as a bankrupt penny stock? What madness.

  3. The Madness of crowds. The Nifty Fifty stocks in the 1960s, people said the only risk was not owning them. Most of the 50 companies are now dead. The crowd is always wrong. In the 1950s only 4% of North Americans owned stock, and the dividends were over 8%, but the Great Depression was still on their mind.