|| 2001-09-25 10:01:00 <Craig Tonkin>
|Sadly this will be my last post to the supra club as I have to come of the|
list BUT please remember that I am still here only not accessing my mail as
much now as I am being sent out on the road more now
Have fun & keep the rubber on the road.
I am still here thou for normal mails
> Subject: THE MORAL OF THE NORTEL STORY
> On July 26, 2000, two friends, Jim and John, each received a $1000 bonus
> at work. (They both work for Nortel Networks, where in the summer of 2000,
> there was LOTS of money around for bonuses).
> Jim, being an intelligent, financially conscientious person, put the whole
> $1000 into Nortel Networks stock. With his $1000, and the transaction cost
> of $35, he was able to purchase 7 shares at $123 each. Having watched the
> Nortel stock climb and climb, he felt very good about this investment,
> happy that he is preparing for the future.
> John, being a more care-free sort, did something slightly different with
> his $1000. John borrowed a friend's truck, and proceeded to the Beer
> Store, where he purchased 33 cases of beer. John also felt very good about
> his investment: 33 cases x 24 = 792 bottles of beer! John, also being an
> intelligent guy, although perhaps not as forward-thinking as Jim,
> calculated that he could drink about 15 bottles per week, and he wouldn't
> have to buy beer for a whole year.
> Jim, of course, was appalled by John's purchase, and berated him
> constantly about it. As months went by, Jim excitedly watched the stock
> prices, and saw it start to dwindle. "It'll go back up", he'd say to Jim.
> Jim, who has been reaping the benefits of his investment on a daily basis,
> would reply, "Ya, it will. Hang in there buddy" "burp".
> Months went by, and the value of the stock continued to fall, and there
> was the beginnings of a noticeable dent in the beer pile. Midwinter came,
> Jim's stock had fallen to about half of it's original value, and John's
> beer was about half gone. Jim, being sure that the stock had hit
> rock-bottom, still was berating John for his frivolous purchase, telling
> him "Your beer will be gone in six months! Who knows what my stock will be
> Well, summer has come, and hard times at Nortel continue. Bad news: Both
> John and Jim have been affected by the layoffs. Last week, in order to
> raise some cash to help through the rough time, Jim sold his 7 shares, at
> that day's value of $12, and got $84, then after paying the $35
> transaction fee, he only had $49.
> Jim stopped by John's house later that day (everyone needs their friend's
> during rough times), and as luck would have it, there were two bottles of
> John's beer left. John, being a good, compassionate friend, offered to
> share his last two bottles of beer with his friend. Jim appreciated the
> gesture, and enjoyed the cold beer on the hot summer's day, but he felt a
> bit guilty. "At least I got fifty bucks back out of it - you have nothing
> now.", he said. "That's ok.", replied John. "Perhaps you can help me, I
> need to return all these empties.", he added as his other friend with the
> truck pulled in. So, they loaded up the truck, and proceeded off to the
> beer store.
> Upon arrival at the beer store, they unloaded the empties, feeling a
> little grim. John went to the counter, and collected his refund for the
> bottles. "33 cases x 24 bottles, at 10 cents per bottle, that comes to
> $79.20", the friendly Beer Store clerk said to John as he handed him the
> money. Jim was speechless.
> Poor guy. Can you imagine how you would feel if you just discovered that
> over the course of the last year, your $1000 stock investment left you
> with $50, and taking same $1000, buying beer, and drinking it, would leave
> you with $80. I'll leave it up to the reader to come up with they're own
> "moral to the story".
> Have a nice day, and better luck with your own investing.
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