Trading on the TSX has been halted, and according to Andrew Wahl Nortel will likely be de-listed completely from the TSX and NYSE.  From largest company in the index to de-listing in a decade.

I have always been personally interested in this company as I used to work for them.  I worked for them until I got frustrated and quit.  There were still many great people at the time of my departure.  Over the years they have slowly been leaving (one way or another).  My heart goes out to those that are still there.

What is interesting is that Nortel sucked it up and declared bankruptcy, after years of trying to recover from poor management.  While some other poorly run companies are getting bailed out.

Update: The TSX has resumed trading of NT.  The price has dropped 62.34%

Trade: Long on POWER FINANCIAL CORP 4.95% NON CUM PFD K (PWF.PR.K:TSX).

Goal: Dividend income.

(Image from http://www.stockhouse.ca)

Analysis:

• Support at $23.10
• Resistance at $24.20
• Down-side potential of 0.09 and upside of $1.00, however at redemption price this would be a an upside potential of $2.81.
• Immediate descending triangle
• Negative moving average and MACD.
• Thinly traded makes it somewhat volatile.
• Listed yield of 4.95% and redemption of $26.00. Currently trading at $23.19 and yielding 5.3%

Reasoning:

• Even though this is showing a couple negative technical indicators, if it remains above support then it should be okay with a short-term upside of $1.00 or 4.3% gain.
• My goal for this stock is the yield so as long at it does not break through support then I should be able to earn at least the 5.3%,
• Trading at a discount to the posted yield and redemption price so there is a possibility for a capital gain.

If you have any criticisms please let me know.