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Posted by deathtoradio on :
 
Anyone know anything about companies in chapter 11, and maybe how to profit off of them? It's my understanding that they could reorganize and perhaps, one day, become profitable again.

If you do have some insight in this area, maybe you could provide a well known example of a company that has made a turn around.

I just think it might be a nice little lottery pick if it's the case. Drop a few bucks and sit on it for a decade or whatever.
 
Posted by PCola77 on :
 
A lot of companies come out of Chapter 11 to become profitable. Problem is, all previous shareholders get wiped out. All of the airlines (I may be exaggerating) have filed for BK at one point or another. Basically common shareholders lose their money and they start over, getting money from new investors.

you can often play bounces on "Q" stocks after the initial announcement/filing, liek LEHMQ was like .05 the other day, and hit .25 today, but you wouldn't want to hold for long, as they usually come right back down.
 
Posted by metal1 on :
 
yeah, bankruptices are great for trading but that's about it. in 99% of them the equity gets wiped out.
 
Posted by Machiavelli on :
 
Bad choice for making money Deathtoradio... what you want to do is gamble... look for better stocks to put your money in...
 
Posted by deathtoradio on :
 
I'm just asking for some info on something I don't have understanding of...which is why I'm asking here. I do have better stocks to put my money into.
 
Posted by T e x on :
 
quote:
Originally posted by deathtoradio:
I'm just asking for some info on something I don't have understanding of...which is why I'm asking here. I do have better stocks to put my money into.

Going back to your original question...

If you see a Q start to run? It's OK to throw date-money at it...Could be a 20-bagger.

Myself, I'd bail long before that, cuz when it tanks it will be quick, and there's no recovery for most Qs.
 
Posted by Machiavelli on :
 
quote:
Originally posted by deathtoradio:
I'm just asking for some info on something I don't have understanding of...which is why I'm asking here. I do have better stocks to put my money into.

No offense but you seem to not have a understanding of the basics of trading and that is why you should steer clear of such risky things as this one you asked about. You should read more on trading imo if you have to ask this question.
 
Posted by deathtoradio on :
 
One could go a lifetime without completely understanding it...unless you're Warren Buffet
 
Posted by T e x on :
 
so, blow
 
Posted by Machiavelli on :
 
quote:
Originally posted by deathtoradio:
One could go a lifetime without completely understanding it...unless you're Warren Buffet

And he knows why? Because he self educated himself pretty much on the topics he's a expert at.. and so should you by first starting to learn the basics of trading... if you want book recommendations let me know...
 
Posted by PCola77 on :
 
LEHMQ hit .40 today, in case anyone was wondering...
 
Posted by greg755 on :
 
It is not a dumb question at all, you Can make good money on bankrupt companies.

Example GMGMQ in it 3 times for over 20% gain or more. How much money will the Gov throw at it now that it is owned by BO?
DPHIQ in it over 20 times for 18% or more.
This should be coming out of it soon.
IDARQ 12 trades at 13% or more.
RHDC 10 trades at 15% or more.

You have to get in and get out fast... I will not hold them for more than a couple of hours (most of the time)

These do much better than micro penny stocks (IMO) for example I have ETNL keep waiting/praying that it will go to OTCBB soon so I recover some of it. Made one bad choice, held it to long and got hammered....

When you are gambling with these types of stocks Timing is everything....
 


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