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© Copyright 2000 Rogers Media. The following article first appeared in the December 2000 edition of
BENEFITS CANADA magazine.
Buy Nortel
Really. No matter what it takes.
Wednesday, Oct. 25, 10 a.m.
Nortel Networks is dropping like a bomb. Something about weak sales in the optical department. Canadian
Investment Review publisher Lori Bak is the first to utter the words "buying opportunity." I like the
cut of her jib.
Oct. 25, 11 a.m. Nortel just fell below $70 per share for the first time since April. Analysts say the
stock was "priced for perfection," so even a generally strong report can send investors into a tizzy. I'm
calling my broker.
Oct. 25, 11:30 a.m. I get my broker right away, which makes me feel pretty special. This does not last
long.
The broker sounds awful. He can't get his orders filled. Clients have been waiting an hour or worse--there
is still no word on their trades. I place a limit order. I'll buy, as long as the stock is trading at $73
or less when the TSE finally manages to process my transaction. Fingers crossed that Nortel doesn't rebound
too quickly.
Oct. 25, 7 p.m. Dinner in front of the business report. Ugh. Nortel trading was halted at noon. TSE
computers couldn't handle the volume. I still don't know if my buy went through.
Oct. 26, 10:30 a.m. I may or may not be the proud owner of Nortel Networks shares, each priced $73 or
better. Broker still doesn't know. He says he'll call. I think he needs a hug.
Oct. 26, 4 p.m. Still no word.
Oct. 27, 10 a.m. This is not funny. Another call to my broker: "Kevin," he says. "I don't know what to tell
you. I have never experienced anything like this before. I'm sorry."
The TSE still cannot say whether or not my order was filled. I could assume it wasn't, and buy again. But
then I risk ending up with twice the number of shares. Nortel is still falling. I decide to wait.
Oct. 27, 10:30 a.m. I am calling my broker during a meeting break. I'm now one of those pension plan
members obsessed with the stock market. I've had tse.com up on my computer since Wednesday morning. I am
thinking about worker productivity.
Oct. 27, 11 a.m. It's official. My transaction was cancelled. I'm buying at market value. It has been two
days since my original order was placed. A U.S.-based money manager tells me "it's like trading in
Indonesia up there."
Oct. 27, 11:05 a.m. I meet with contributing editor Barb Clapham about her Investment Strategies column.
This month's topic is quickly agreed upon. (see "Breakdown on the TSE," page 17).
the last word on terminology. you'll find the eighth annual Defined Contribution Plan Report in this
month's issue. This was formerly known as the Money Purchase Plan Report.
In the hopes of laying to rest a long-standing industry debate, we have made a terminology switch. It is
now benefits canada style to refer to "money purchase" pension plans. These, along with group registered
retirement savings plans and others will now be referred to under the "defined contribution" plan umbrella.
We're following your lead here. The change is a result of reader requests and extensive polling.
All the best for the holidays.
--Kevin Press
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