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July 3, 2020 | Connecting Dots Between Nortel’s Collapse and the Ascent of Huawei

Danielle Park

Portfolio Manager and President of Venable Park Investment Counsel (www.venablepark.com) Ms Park is a financial analyst, attorney, finance author and regular guest on North American media. She is also the author of the best-selling myth-busting book "Juggling Dynamite: An insider's wisdom on money management, markets and wealth that lasts," and a popular daily financial blog: www.jugglingdynamite.com

Nortel was Canada’s star company into the 2000 cycle peak before a spectacular collapse crushed retirement savings across the land.   The usual irrational exuberance, extreme overvaluation and complacent management undoubtedly played a leading role; but a new investigation also connects Nortel’s collapse with Huawei’s ascent to 5G leader today.  You can read the story here in Did a Chinese hack kill Canada’s greatest tech company? and listen to a video report below and at this direct video link.

Increasing scrutiny and restrictions against Chinese technology and products are likely to be a dominant theme for years to come.  The “MADE IN CHINA” mania has turned.

The death of Canada’s greatest tech giant has been attributed to mismanagement, the collapse of the dot-com bubble and the 2009 fiscal crisis. However, Bloomberg News’ Natalie Obiko Pearson says a Chinese hack, possibly involving Huawei, may have dealt the death blow.

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July 3rd, 2020

Posted In: Juggling Dynamite

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One Comment

  • Avatar Flavortown says:

    Where I work, and older lady relayed the story of Nortel. Her IT job had her on duty for long hours, and she made 6 figures doing it. One day, Nortel upper management introduced the new management team. A management team comprised of swarthy mediterranean men in expensive suits and slicked back hair took the stage. The end of Nortel was near. It seemed obvious to her, in hindsight, that the new management was there to grab everything that wasn’t nailed down.
    She is still working as her Nortel pension is compromised.
    She never uttered the works China and/or Hack in conjunction with Nortel.

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