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Thinking 1.40-1.75
Pre-market dead cat bounce engaged.
$GTAT
today should be wild. already $1.04 premarket.
$GTAT
because there is value in the ongoing business. lol
Why would a bk pos company that's being sued out the ass have even a minuscule bounce? Lol
Obviously and most likely will
Much more value here then a dollar.
With 1+ billion eroded yesterday I'm sure sharks are circling now
Wouldn't doubt to see this 2.5-$3 short term.
This is the most bizarre event that I've ever seen in the market.
It's gone be very interesting.
Any chance a white knight comes along?
Gap n trap on deck. Looking for entry at .75-.80 about an hour into trading
Na I don't hold these long, learned that along time ago.
$GTAT
Could see 1.50-$2.50 levels days to come
Far from over and huge money to be made from here
"$1.5 billion in assets and liabilities totaling approximately $1.3 billion"
Correct me if I'm wrong here, should this be trading at $2 or so?
definitely high 90%s ending up bad. Did see a few cases where old shareholders got 2.5% or 5% in new equity but thats peanuts. Probably more likely in cases where bod's own a big % of the common.
With these got to trade not invest. Like I said in my last post only seen one come out whole and I trade most of these. Hopefully can dig up symbol in the am, that one was nuts. Went for 350,000% bottom to top.
You might be right on the K-Mart deal. I wasn't following that closely. The vast, vast majority of Chapter 11s are total wipeouts for common stock holders. I've see a few though where they just cramdown the commons via an ugly reverse split and then issue new shares to the DIP financiers - usually leaving the old common holders with maybe a percent or three of the issued. (Yeah, I know I misused the term 'cramdown' but it is a similar phenomenon).
Chapter 11 is death for the common stock holder 98+ percent of the time.
or first bounce .96 to 1.90. third bounce 1.12 or whatever to 1.4s wasn't bad either. or .79 eod to 1.12 ahs. if you got the guts and timing...
you are right most chapter 11s eventually end up in complete loss for shareholders. It drags on for a long time though, at least a year, usually longer.
Over years BK stocks have been some of my biggest gainers though. Once on pinks and cleaned up just about all them make big runs from lows before dying. Even biggest scams like worldcom, enron, lehman etc ran huge. .04 to .30 type runs. Or CEMJQ was it .01s to near $2.
NYSE bks better not even try day its announced as many times NYSE will halt them for good, it opens way down on pinks next day as funds dump out. Naz stocks don't delist right away and give good opportunities like GTAT 1sh to 1.9 then .75 to 1.4s today. hoping this ends up on pinks soon, will give a good trader with big bounce opportunities.
You sure Kmart gave old shareholders a small stake? Thought they just canceled old shares and gave all new equity to creditors. Out of many dozen bk stocks have traded only remember one that made it. Can't recall the symbol but it hit .01 for lows and was barely trading any volume .03 area. Then it ran crazy to 1.5 one day, then to $4 or something the following day. Eventually it came out of bk and made it to $35. Then some years later think it ended up in bk again lol
Playing this for a quick 2 day dead cat bounce, then I'm out.
$GTAT
Bankruptcy blows sorry to hear lots of investors lost everything... Worth nightmare
This is CHPT 11 not 7.
Here's a good explanation on the difference.
If a company is successful in chapter 11, it will typically be expected to continue operating in an efficient manner with its newly structured debt. If it is not successful, then it will file for chapter 7 and liquidate. In both instances, common shareholders will most likely see little (if any) return on their investments.
http://www.investopedia.com/ask/answers/190.asp
This is CHPT 11 not 7. I think something is up. Maybe apple got frustrated with GTAT and threaten them with pulling the loan back
How A Company That's Worth $1.5 Billion On A Friday Could Go Bankrupt On A Monday
GT Advanced Technologies, which makes sapphire glass components for smartphones, filed for bankruptcy on Monday. Sapphire glass is an ultra-strong material, which Apple uses on both the camera lens and fingerprint scanner on the new iPhone. However, Apple doesn't, contrary to some expectations, use the material for the iPhone's main display.
The move caught the market flat-footed, and, after the announcement, shares of the company were down 90%.
The drop in shares of GT on Monday has taken the company's market cap from roughly $1.5 billion Friday to about $175 million.
At least one analyst Business Insider heard from after the announcement sees one possible reason for the sudden change from GT Advanced: Apple pulled the plug.
Jeffrey Osborne, an analyst with Cowen & Co., wrote that Apple, which lent GT $578 million as part of a supply agreement last November, "had the ability to call the interest free loan back and it appears they have done that."
Last November, GT and Apple entered a multiyear sapphire materials agreement that would include GT manufacturing sapphire materials at an Apple facility in Arizona. That agreement said that GT would reimburse Apple over five years, starting in 2015.
In his note, Osborne wrote that the agreement with Apple, "was made in order to allow GT to purchase components for the manufacture of ASF systems at the Arizona facility leased from an Apple affiliate company."
"Repayment was initially scheduled to begin January 2015 and follow a five-year schedule," Osborne wrote. "In its repayment terms, it is most likely that a substantial amount of additional current portion of prepayment was triggered as a result of covenant terms held between GTAT and Apple in relation to operating and financial metrics that the company likely failed to meet."
Osborne also noted that GT's cash and equivalents fell to $85 million on Monday from $333 million back in June, and while Osborne hasn't yet been able to confirm this, it seems this drawdown most likely resulted from early repayment triggers in the Apple loan.
Monday's news comes about a month after Apple announced its latest iPhone models, which some investors were betting would feature a full sapphire display.
They didn't, and immediately following that announcement shares of GT Advanced sold off. And since that news, GT shares have fallen about 40%.
http://finance.yahoo.com/news/heres-best-theory-weve-heard-180824592.html
* * $GTAT Video Chart 10-06-14 * *
Link to Video - click here to watch the technical chart video
Totally disagree. I think that the 15% rise AH proves that theory wrong but we will see...
Shit down 15,000 lol fkers need my money back wtf
If this wanted to have a real bounce...it should have done it already.
The only one worthwhile was that move from .75 to 1.44
Got a helmet on just in case.....................$$$
Was it da evil shortys that drove it down today???
We must buy more to squeeze them out! TOO DAAA MOON, right?? We are at war with the shorts!
Nice to see I'm not the only one who feels that way.
Agree completely;)
So in most Chapter 11 bankruptcies, the existing shareholders get essentially zeroed out by the court or diluted to dust by the new financing that takes virtually all the equity.
There are a very few exceptions where existing shareholders can still retain a non-trivial fraction of the equity, but those are usually large companies with strong cash flow from existing operations - like retailer K-Mart.
Smaller tech companies that go through Chapter 11 usually wipe out the existing investors and may even cancel the class of stock and reissue new stock to new investors to raise money. And often the creditors - preferred stock or bond and note holders are "paid" with the new stock - at least in part - as part of getting their approval for the restructuring. Each creditor class (but not common stock holders - who are not creditors) must vote as a class to approve restructuring plans presented by management.
It is never a pretty sight. And a really sad time for common stockholders.
Heck, in GM even the senior bondholders were wiped out by the government not following black letter bankruptcy law because of politics. The newly issued stock was handed to the UAW and the US Treasury.
Yup. Almost got there today
Even with the filing gtat should trade up short term to 1.50
Apple Supplier (GTAT) Files for Ch. 11 Bankruptcy
Apple's (Nasdaq: AAPL) sapphire supplier GT Advanced Technologies (Nasdaq: GTAT) announced that it had, together with certain of its direct and indirect subsidiaries (collectively, GT), commenced voluntary cases under chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of New Hampshire. GT expects the court will authorize the company to continue to conduct business as usual while it devotes renewed efforts to resolve its current issues and develops a reorganization plan.
GT indicated that as of September 29, 2014 it had approximately $85 million of cash. In addition, it is now seeking debtor-in-possession financing, which, once obtained, would provide the company with an immediate source of additional funds. These funding sources will enable GT to satisfy the customary obligations associated with the daily operation of its business, including the timely payment of employee wages and other obligations.
As a result of the filing, and as is customary with public companies, NASDAQ may temporarily halt trading in the company's stock pending the receipt of additional information on the company's financial condition. The company is cooperating with NASDAQ and will be providing any requested information as promptly as possible.
"GT has a strong and fundamentally sound underlying business," said Tom Gutierrez, president and chief executive officer of GT. "Today's filing does not mean we are going out of business; rather, it provides us with the opportunity to continue to execute our business plan on a stronger footing, maintain operations of our diversified business, and improve our balance sheet.
"We are convinced that the rehabilitative process of chapter 11 is the best way to reorganize, protect our company and provide a path to our future success. We remain committed to our roots in innovation and our diversification strategy. We plan to continue to operate as a technology leader across our core set of businesses."
The company indicated that it expects to provide additional details with respect to the chapter 11 filing as soon as they are available. More information, including access to court documents, can be accessed at www.KCCllc.net/gtat (court- appointed claims agent site); or www.nhb.uscourts.gov, the official Bankruptcy Court web site.
Additional information can also be found by visiting the "About Us" section of the company's website at http://www.gtat.com/about-us-overview.htm and clicking the link for "Restructuring Information."
Apple Supplier GT Advanced Technologies (GTAT) Files for Ch. 11 Bankruptcy
I said sell and take profits because there's no way this was going to hold today after such a dip and rebound today. It's up ah so tomorrow should be interesting.
Yep, gonna get ugly...
Like i said protect those long shares..but nooooooooooooooo ..we know who lead ya down the hole~~admit it~~ yep got those insiders out..they knew~~
Lost the contract with Apple and filed banckruptcy.
For real bro. go and look at after hours on Nasdag.com 701,841k went thru.....
This will be the next best play of the year I say buy buy buy @ .20c because some one's going to buy them out!!!!!!
My prediction is an AM gap and crap to burn some shorts in premarket trading. Hopefully some shorts available during the spike.
I think more like they came home to check their stock and now on suicide watch as they lost 90% of heir money today.
forreally bruh?
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