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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.
Posts: 47 | From: Pennsylvania | Registered: Apr 2006
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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.
-------------------- I'm back! Posts: 5413 | From: West Chester, PA | Registered: Jan 2006
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yeah, bankruptices are great for trading but that's about it. in 99% of them the equity gets wiped out.
Posts: 931 | From: novato,ca,usa | Registered: Aug 2003
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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.
Posts: 47 | From: Pennsylvania | Registered: Apr 2006
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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.
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.
-------------------- Money Never Sleeps Pal.
Greed, for the lack of a better word is GOOD. Posts: 3786 | Registered: Mar 2004
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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...
-------------------- Money Never Sleeps Pal.
Greed, for the lack of a better word is GOOD. Posts: 3786 | Registered: Mar 2004
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