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Europe

Nortel Up 870%

1:30 PM -- Here are a couple of questions for you:

  1. When was the last time you saw Nortel Networks Ltd. 's share price shoot up by 870 percent?
  2. When was the last time you saw any company's share price shoot up by 870 percent?


Never, we reckon. But that's what has happened today: Nortel's stock is up $18.75, or 872 percent, to $20.90.

What's going on? A 10-for-1 reverse stock split is the answer. As of today, the vendor's investors have one consolidated Nortel share for each 10 pre-consolidated shares they held yesterday. (See Nortel Implements Split .)

Without that consolidation, Nortel's share price would currently be $2.09, down 6 cents from yesterday's closing price of $2.15, which sounds more like the Nortel we know and love.

— Ray Le Maistre, Stock Hike Editor, Light Reading

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