Perhaps the sell-off is related to recession fears. But telecom spending has been picking up due to a surge in bandwidth-intensive video transmission, and is forecast to grow strongly. Cisco Systems, for example, projects 50% annual Internet traffic growth. If the recession is not too severe, perhaps telecom spending can still continue to rise.

Nortel is showing some promise in the 40-gigabit optical transport line, with over a dozen contract wins during two months of general availability in its new line-up. And JPMorgan analyst Ehud Gelblum upgraded Nortel stock in early June to a buy (following a four-year neutral rating) thanks in part to a key contract win with Verizon Communications (NYSE: VZ) for Metro Ethernet switching equipment.

Analysts have said Nortel is making progress on cutting costs and jettisoning disappointing businesses (a la the General Electric (NYSE: GE) culture from which CEO Mike Zafirovski hails). Still, the wireless division, which is carrying the other business lines, faces a projected 4% annual decline in the CDMA wireless market.

Nortel is preparing for the wireless future by putting its WiMax initiative into a partnership with Alvarion and concentrating R&D on the LTE (long-term evolution) standard — which analysts have applauded because some of the largest phone companies are leaning toward LTE. Nortel also says it is the only company in the industry conducting live trials of LTE; however, it also faces more competition in this new arena.

So where is the stock going? Despite recent price action, there seems to be an improvement in expert opinion and fundamentals. Still, the situation remains speculative. And add a grain of salt to my update – I'm a long-suffering Nortel investor whose holdings are down 70%.

We looked at all 3,708 companies listed on the TSX, NASDAQ and S&P 500 indexes at the end of May 2008. Of these, Bloomberg established that 719 companies were around at the end of 1990 when the initial investment was made. A total of 40 companies (5.6%) gained enough to turn your $1,000 original investment into more than $50,000 from the end of 1990 to May 31, 2008. Four companies reached the $200,000 level, enough to finance more degrees than a thermometer.

The following table lists companies, their index and industry and the value of your 1990 $1,000 investment at the end of May 2008. As you will see, nine of the top 40 companies were Canadian. Sino Forest came in as number one and Canadian Natural Resources to the number four spot. Of the total, only 68 companies actually lost money and 88 lost money after inflation is taken into effect. The TSX, DOW, S&P and NASDAQ exchanges returned $6,073, $7,129, $6,033 and $7,208 for your initial $1,000 respectively.

Now, let’s get down to the nitty gritty. The value of its Thomson Corp. shares is a major component of the Thomson family’s net worth. According to the most recent Thomson management information circular, issued on April 4, as of March 20 the Thomson family, through its investment vehicle Woodbridge, owned 450, 611, 770 common Thomson shares. We know from a management information circular issued in late February that Thomson Corp. shareholders would “continue to own their existing common shares,” when the acquisition was completed. As I post this Thomson Reuters Corp. shares are currently trading at just more than $36 on the TSX. That means the value of the Thomson family’s shares is around $16.3 billion, which is down some $3.6 billion from when we calculated the familly’s net worth for the 2007 Rich 100. Back then (Oct. 12, 2007), the stock closed at $44.39, and the shares were worth $19.9 billion. It should also be noted they owned some 2.6 million fewer shares when we made our 2007 calculation.

While the Thomson family is hardly in the poor house, $3.6 billion, even if it’s just a paper loss, is nothing to sneeze at. In light of the current U.S. economic environment Thomson Reuters does face uncertain times, but the company seems confident in its future: it also announced it may repurchase as much as US$500 million of its shares by the end the year. Looking out a bit, May 1 is the date Thomson Reuters will release first quarter results, as well as a 2008 financial outlook. As for the Thomsons, we’ll just have to wait until the 2008 Rich 100 to see how Thomson Reuters’ performance affects their place in the overall ranking. Truth be told, my bet’s on them to hold on to the number one spot, but you never know….

Well, in a March 13 U.S. Securities and Exchange Commission filing Melynk, Biovail’s largest shareholder, announced his intention to propose an alternate slate of directors at the company’s next AGM. Melynk, who retired as Biovail chair last June, says he does not plan to run for election to the board, or seek a management position. Melnyk also said he plans to mail a proxy circular with details of his choices for directors in “due course.”

In other Biovail news, the company announced its 2007 year-end results today, which included a $16 million year-over-year reduction in net income. Revenue was down 21%, year over year. In the release, interim chairman and CEO Douglas Squires said “2007 was a very difficult year for Biovail and its shareholders.” Indeed. The stock (TSX: BVF) fell nearly 46% in 2007. As of close March 13, it had fallen another 2%.

How do they plan to bounce back? In 2008 “senior management will be undertaking a comprehensive review of the Company’s core strategies.” Probably a good idea.