Nortel has been in a nosedive since 2000, but its directors still believe they deserve another chance:
Mike Zafirovski, Nortel's CEO, told the parliamentary committee the he had heavily invested in Nortel stock last year because he was sure that the fallen technology giant was on track to recover its status.Hmm... How long they've been saying that for? 7 years? 8? 9? Sure, they'll rebound. Yeah, I've seen their stock rebounding from $122 in late August of 2000 to less than $10 just a year later. The only way they could bring the stock price back into the double-digits was through a "reverse split" - when 10 old shares were replaced with 1 new, worth 10 times as much. Now, even those shares worth pennies. I believe that's enough. If Nortel ends up out of business - so be it; I bet, what's left of the company just can't do any worse under different owners.
Zafirovski said that several of the company's directors, him included, invested their personal money in Nortel stock last year.
He said his family invested about $500,000 in the company's stock, including some money that had been earmarked for his three sons' college tuitions, because he was certain Nortel was on the rebound.
So I applaud the government's decision not to include Nortel in the bailout package. Finally - a common sense decision for a change. I'd rather see that money going towards buying new streetcars for Toronto - after all that's something that's going to last 30 years, not to mention that it will be serving a city of 3 million...