By Frank Bilovsky
Democrat and Chronicle

(Wednesday, January 30, 2002) -- Mildred Haley and Rick Pecora are just two of thousands of Rochester-area residents who find themselves in an uncomfortable position today -- holding nearly worthless stock.

Haley, of Greece, and Pecora, of Irondequoit, are Global Crossing Ltd. shareholders. The one-time high-flier closed trading Tuesday at 9.2 cents a share. That is down from $1.27 two months ago, and $46.50 two years ago.

Haley began acquiring stock in Rochester Telephone Corp. on the advice of her bosses in the 1960s and 1970s when she worked with the company. They told her that the stock paid a good dividend and was a great retirement investment. "And it was until Global Crossing got its hands on it," said Haley, who retired in 1979. "Those birds ought to go to jail. All of them."

Pecora bought some Global Crossing in the low $20s and sold it for $12.

"I learned that you can't believe everything you hear or read," he said.

Or did he? Pecora later bought 100 shares of GX (GBLXQ as of yesterday's trading) at $3. Now he's stuck with it.

Things could have been worse. Those two investors could have been among the workers or retirees with a hefty percentage of their 401(k)s in Global stock. Or investors who had a high percentage of their portfolios tied up in it.

The lesson to be learned: Don't break the first commandment of investing.

"I do not know how to strongly enough state the horrendous liability you can face, particularly in retirement accounts, when you put all your money in one stock," said Mary Spurrier, president of Brighton's M. Spurrier Financial Services. "You do not put more than 10 percent of any particular holding in any company."

Haley was savvy enough to build a portfolio that includes shares of half a dozen solid blue-chip companies.

"It's a shame that in some retirement plans set up by companies, the only choice is company stock," Spurrier added.

Russell Achzet, chief executive officer of AM&M Financial Services, is even more conservative than Spurrier. He says no one should invest more than 5 percent of a portfolio in any particular stock.

What can those still holding Global shares do?

"If you own it in a taxable portfolio, you can sell it and at least take the tax loss," Achzet said. "401(k) people are stuck. It's lost money."

Spurrier has another suggestion. "Send the stock certificate away and get it framed," she said. "Then hang it on the wall -- as a reminder."