OK, maybe we were a wee bit overzealous before the Nortel wreck rocked Bay Street (you too, John Roth).

Maybe we did jump the gun a tad by filling the swimming pool with Mumm’s Extra Dry.

After four months of carrying a blood-red balance sheet, we figured resurrecting the Traders’ Edge portfolio from the poorhouse into the green was worthy of a proper bash.

As you might have guessed, with our portfolio down another 3.8 per cent for the week to 6.5 per cent, we’ve postponed the party for a week. Okay, maybe for 30 years or so.

(E-mail to Roth, Nortel CEO: Please disregard invitation to Traders’ Edge soiree, we’re moving your name to that OTHER list.)

After enduring the twin knockout punch of grumpy Greenspan and rosy Roth, we confess to being a bit deflated, kind of like a bug on a windshield. And we didn’t even own Nortel.

First, that partypooper Al Greenspan, cheerless chairman of the U.S. Federal Reserve Board, paralyzes us with his confusing and contradictory testimony to Congress. Then, Nortel knocks us cold with that nasty haymaker, forecasting a four-cent-per-share loss for this quarter, a far cry from Roth’s recent 16-cent earnings forecast.

While Nortel was being bludgeoned for a 33-per-cent tanking on 24 million shares Friday, the sumo wrestler of the TSE squashed hundreds of other tech stocks while going splat on the canvas.

Two Calgary tech companies in the Edge portfolio, Cell-Loc and Electronics Manufacturing Group, took 10-per-cent hits on Friday alone after recent run-ups.

Among our other tech casualties: Axia NetMedia (-9 per cent), Unique Broadband Systems (-8 per cent), SYNSORB Biotech (-5 per cent), Envoy Communications Group (-4 per cent) and Compusoft Canada (-3 per cent).

Meanwhile, a lynch mob of shareholders has been gathering at the doorstep of Roth, who has some explaining to do after issuing a relatively rosy forecast on Jan. 18 before dropping the Feb. 16 bombshell.

But those investors who were loading up on Nortel recently in the $50 to $60 range in a frighteningly turbulent market should also take a long, hard look in the mirror. The same goes for the cheerleading analysts who had jumped back on the bandwagon of the fibre-optics giant.

Did these people learn nothing from the tech carnage of the past year?

Meanwhile, it’s back to the drawing board. This week, we took profits of 11.6 per cent ($580) on Calgary-based BW Technologies at $7.70. And then dove headfirst into the pool of champagne — buying Nortel at $31.

PRO'S THREE STARS

Andrew Hogg, Calgary-based oil and gas analyst at Yorkton Securities, picks two majors, Canadian Hunter Exploration (HRT-TSE) and Canadian Natural Resources (CNQ-TSE), as well as Genesis Exploration, a choice of his Yorkton partner, Steve Smith.

All three companies carry Yorkton’s ‘top pick’ ranking, the highest rating on a five-rating system.

Hogg discloses that he holds a position in Canadian Hunter and that Smith holds a position in Genesis.

Hogg gives Canadian Hunter (recent price $39.70, year range $21.50-$41.50) a $50 12-month target, and Canadian Natural Resources (recent price $48.00, year range $29.80-$56.20) a $70 12-month target.

“Canadian Hunter has outperformed in every single quarter since going public in late ’98,” says Hogg of the gas-weighted stock. “We think they’ll continue to outperform this quarter.”

Canadian Natural Resources is heavily weighted in heavy oil, says Hogg, adding “that has hurt the stock.”

Genesis (recent price $14, year range $7.35-$14.30) gets a 12-month target of $16 from Smith.

TRADING TIP

Perhaps the most difficult discipline to maintain is the ability to admit mistakes by absorbing minor losses before they grow into major losses (such as the Traders’ Edge portfolio). As Charles Dow, founder of the Wall Street Journal, once stated: “Pride of opinion has been responsible for the downfall of more men on Wall Street than any other factor.”

SITE OF THE WEEK:

www.rrsp.org

This site offers useful tools for RRSP investors, including an RRSP quiz and a directory of financial advisers.

Our apologies for misspelling last week’s site. The site specializing in online financial planning and portfolio management is, in fact, at www.oiadvisor.com

HOT STOCK: KEYWEST ENERGY

KWE-TSE $1.68

Up .28 (+20 per cent) on 7,533,300 shares (for week ending Feb. 16)

KeyWest president Harold Pedersen recently predicted KeyWest’s bright prospects would translate into a higher stock price and the stagnant stock did awaken with a vengeance on massive volume. The Calgary oil and gas company is starting to raise some analyst eyebrows and helped its cause by announcing it was increasing its 2001 earnings forecast to $10 million (21 cents per share) from $8 million (16 cents) to reflect production volumes and natural gas prices.

COLD STOCK: ELECTRONICS MANUFACTURING GROUP

EMG-TSE $4.50

Down $1.21 (-21.2 per cent) on 542,200 shares (for week ending Feb. 16)

EMG CEO David Snell says the company will benefit from an economic slowdown as larger tech companies outsource electronics manufacturing services, but a ruthless tech market pummelled the stock to near its year low. The Calgary company recently spiked 50 per cent during its TSE graduation party, but has given back almost all of those gains, largely over panic triggered by the woes of Nortel Networks, one of EMG’s customers.