LOL.
Maybe cowboy is on to something. Either way it's painful to watch those partials go through.
It makes it look like a bunch of grandmothers are investing their casino nickel slot money.

Is Dmaze back out ???

I'll bet you 2 shares (present value) against your two shares (value two months from now) that we don't break the mil mark today.
To be paid in two months one day of course.

Explain this to my mother-in-law today.

A few months ago I invested 1k for her in CENX at about 3 bucks a share. It's been going up, she nearly doubled her money and was doing great.

Last week I was talking about CEMJQ and how I'm on a 250% run and expect it to do great, blah, blah, blah.

She asks me do you think she should get out of CENX (aluminum manufacturer) and jump to CEMJQ.

I explain cancellation and all that and she says fine. I pull her out of it Monday morning and bring her here.

Well wouldn't you know it aluminum jumps up big time and CENX is up from 6 to 8 while we have been going slowly down.

She's going to check today and I'll have to go into my sales pitch about how it's stocks, not a bank, there;s risk and reward involved, and just wait a while.

Boy , it's a good thing I really do like my MIL.

Does anyone with L2 ( it seems we all use it) ever look down the ask column and wonder why a MM changes an ask far out ??

I just watched AUTO change to .45 in the last few minutes.

I probably have too much time on my hands and need my client to start up work again but this kind of stuff I find perplexing.

Agreed and that's what I posted, charts can be great predictors but you must have more volume than the trend for the last few days.
Isn't that what I posted ??

9 at .30 on the bid now ???

Agreed.
All the chart reading in the world won't mean anything at the volume level we see today and for the past few days.
News and volume will make that chart work.
It's nearly 2pm and we are just over 700k , at this rate we'll be lucky to break a million today and that would be post-BK low by a large amount.
Mo-Mo has left the building big time.

The thing is they are both green from yesterdays close with almost no volume whatsoever and most of yesterday a sell off.
And there is a wall of support on the bid that is green from yesterdays close as well.
How can that not be interpreted as the MM wanting to take this north ??

So now that you know, why not buy a couple of million shares and help get this going today ??
LOL

Better answer tool power, more informative.

Market Makers. They buy and sell stocks for brokerages where you place an order

This is what I was saying earlier, they are flipping the bid/ask on almost no movement.

It seems if the get a 5k order the MM will just bump the bid/ask either way just to get it through.

Calm before the storm ?

The question is though which way will the storm blow today ??

Because it's been windless for about 20 minutes

Hey CEMJQ, what's the SOFA ??

And please no furniture jokes everyone .

You can almost tell the MM want this to go. If there is a sale they almost immediately drop the ask to that price or near.

Trying to keep the pressure on to buy.

Once again, a little volume gets this rolling today fast.

.30 x .31

Higher bid than close yesterday even with low volume and slight sell off all day.
Minor but encouraging.

That shack might be worth a few bucks to someone if it was for sale you think ??

The one thing I keep in mind is it is an article on the WSJ blogsite.

Not everything in print is true and blogs (although I'd tend to believe if you work for the WSJ you're legit)have been known to tend to skew news or report somewhat less than factual truths.

That being said, I would have every reason to think this reporter did their DD and presented the facts given that it is not a personal type blog, but one that is backed by one of the most legit financial news organizations in the world.

BTW Turbo, are you always up this early ??
There is never anyone on these boards or any others for that matter this early, no matter what I'm out of bed 4:30-5 am.
Hard to kill that time until noise ordinance in town is lifted to work outside or until the opening bell.
LOL.

You would have to think so IMO.

It is a valuable asset, and like they say with sports trades, you have to give up good to get good. If they need or want enough to cover their upcoming debts they have to sell something of value.

It just doesn't make sense to delay a case until almost two months out when supplies are going to expire shortly according to Chemtura.

Canceling leases and stopping unnecessary expenditures for that division, before the sale of a division , that won't be included in the sale, would seem the norm to me. And according to some posts I read here you have to do that through the courts.

Unless OxyChem presented such a compelling opening argument to the BK judge that he immediately realized Chemtura was wrong with presenting a case for this matter , he just stopped production of one of their biggest revenues for this time of year for close to six weeks minimum if the article is correct.

And this is precisely a 100% reversal in what filing BK is about.

Something doesn't add up. Or does it.

Chemtura to run out of pool supplies this week according to WSJ blog article. NOT GOOD AT ALL IF TRUE.
Article is below
If this is true why would any BK judge defer the the case until late July ??
Surely their team of lawyers must have presented these facts.
You would think the BK judge would expedite the case as compared to delay.
Unless other facts were presented that we don't know about making this revenue less important somehow, because the BK judge is supposed to help revenue continue, not delay or stall operations.

By Eric Morath 6/10/09

Swimmers may hesitate before they splash into the water this summer now that a bankruptcy court dispute has slowed delivery of pool chemicals.

Chemtura Corp., a leading maker of pool and spa chemical products, filed a lawsuit in bankruptcy court demanding that a vendor immediately deliver raw materials the company ordered, saying otherwise the industry could face a shortage of algae and bacteria-fighting agents.

Without the supplies Chemtura, “will no longer be able to fulfill the orders of its key customers, who themselves will run out of product during the busiest part of the year,” the company said in court documents.

Chemtura, which is operating under Chapter 11 protection, alleges Occidental Chemical Corp. has breached its contract for failing to deliver a type of chlorine and other necessary chemicals.

Chemtura said it would run out of supplies this week. The company has asked for a restraining order that would force Occidental to immediately deliver a fresh batch of supplies.

Occidental countered, in separate court papers, that Chemtura failed to accurately forecast its needs and the vendor is now busy supplying products to other customers.

Chemtura “cannot convert what are anticipated to be short (if any) delays” in chemical supply shipments into violations of bankruptcy rules, especially considering that Chemtura “is responsible for the scheduling jam it says it is in,” Occidental said in court papers.

Chemtura sells pool cleaning products under brand names such as BioGuard, Aqua Chem and Pool Time.

Bonds finished up another buck to $56, they keep rising, commons got to catch up sometime.

http://cxa.marketwatch.com/finra/BondCenter/BondDetail.aspx?ID=MzkwNTY4QUEx

Trying to learn how to read them and just found your site.

Thanks, although it's pretty much Greek to me still.

What I got from it rudimentary is we must stay above .10 and break and close above .21 in order to move to the next level.

Correct ??

Released on Motley Fool and posted on Google Finance in the PR section.

Who knows , it might spark some more retail ?


is there a "bankruptcy bounce"?

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June 10, 2009 – Comments (5)

I bought a few shares of CEM (Chemtura) which is now some insane pink sheet ticker, cemjq.pk i think.

I bought it at 18 cents, 17 cents, 16 cetns and 12 cents, and then CEM declared bankruptcy. I had alot of fun on the CEM yahoo message board the day they declared BK as trading halted and nobody knew what was going on, speculation ran rampant, and all of that.

The news then came out that they had delcared BK, and a whole new set of posters arrived on the scene. One offered that his/her investment strategy was based on buying stocks in the days following bankruptcy and then selling them some time later after what he/she described as usually being a significant bounce. Apparently, per this posters commentary, this "bankruptcy bounce" is extremely common. This person said they put in an order for something like 250,000 shares in stages between $0.02 and $0.03.

CEMJQ.PK went to $0.02 within a couple days of the declaration... And has since bounced as high as $0.37. Thats very nearly a 20 bagger, and more than a 10 bagger on average for this mystery poster mentioned in the paragraph above. I actually made money on CEM, after being down 80 some percent at the low.

I bought some shares of GGP for 60 and 36 cents earlier in the year, sold off enough sahres to basically just have the houses money left on the table when it bounced to $1.20 before the bankruptcy declaration. After the bankruptcy declaration, GGWPQ.PK dropped to the 50 cent range and has since bounced well over $3. I'm letting those shares ride for a while to see if Ackmans strategy works out, even though I suspect he makes out well and common shareholders have a decent chance of getting the shaft.

Pilgrims Pride (PGPDQ.PK) has been on a epic tear since the first days after its bankruptcy declaration. It hit 14 cents in the days after BK was declared and has since gone on the ride of a lifetime, hitting nearly 7 bucks. Thats a 50 bagger folks, better than many of us will ever do on any holding in our lives.

I am not really aware of all that many more companies that have gone bankrupt. Lehman dropped to a nickel within days of BK and subsequently bounced to 30 cents, only to drop back to a nickel. So your timing would ahve had to be good, but the "bankruptcy bounce" did occur.

Washington Mutual bounced from $0.02 to $0.10, but in the days just after bk it fell only to the $0.06-0.07 range, so thats not much of a bounce, but is a 50% return in under a year.

GM shares have staged quite a rally in bankruptcy, even though they are so clearly worthless.

Playing the bankruptcy bounce isn't really my style, and I don't know where to get a list of everybody thats going broke, but in an hour of digging around I can't find a bankruptcy stock that DIDN'T exhibit this pattern to some degree.

Did my fine feathered mystery poster on the CEM board have a strategy with good historical odds? Was he/she onto something?

Is there a bankruptcy bounce?

Checklisted minds are curious.

Any number of things but the big one would be asset sale to provide instant liquidity and come out of BK early.

A profitable Monthly Operating Report could be released soon also.

Maybe I'm simple or something but I thought the DIP was to cover the liquidity issue for the last few months to pay suppliers and keep operations running.

If it is for bonds than how are they operating ??

How would you feel if you dumped all those shares at .30 and news came out AH or before open ???

Explain that one to your wife !!!!

Somebody is liquidating

Nice steady dose of people selling their winning lottery ticket for .31 or now .305

Got to just smile and shake your head sometimes.

Just want to check for facts,

There's a guy posting on Yahoo that the July bonds for 2009 have been pushed off so they are not due until a few years later.

Not true , correct ??

Your good but it might be a little below now that it's 30 seconds later.

I think the MM saw my post and dropped it to .31 instead of .311 to mess with me.

Closing prediction .311 or .315

Any takers ??

Another pitiful volume day.

Yesterday was the second worst day in volume since BK but we're on pace to knock that off 24 hrs. later.

It's a battle royale between .311 and .315

Going into hour two.

LOL.

Seems like this is where the MM's want it for the time being.
If it hit .25 I'd have to consider something along those lines too.
Unfortunately I'm waiting on licensing news on my other large long position but would seriously give it thought.

Stress is watching VSTN after you liquidated your position to cover a margin call today.

LOL.

At least is was only 10k shares.

Thanks turbo,

Normally I can't watch ticks since my job keeps me away from a computer.

I have a few weeks off on a delay with the apartment I'm working on in NYC.

The client is experiencing change order euphoria and I'm in a holding pattern.

Want to hear the biggest kick in my ass though ???

My client is William von Mueffling, google his name, one of the biggest and most successful wiz kid hedge fund guys around today. Real nice guy. 25 million dollar 10th floor apartment overlooking Central Park Zoo.

Wondering if his guys are manipulating us today ?? LOL.

When you see a MM drop back on the ask (DOMS just went from .335 to .34) although there is no buying or selling, what do you think the reason is in light of the fact they are stacked a few back on the ask.

Are there buy/sell orders coming in and they realize that they can sell for more ?

I know we'll never figure out the MM games and strategies but was wondering if someone would care to throw a dart.

We'll do roughly mil in volume in the first hour.... to bad it's the wrong way. LOL.

Couldn't get a mil yesterday til mid-afternoon.

Better times ahead.

Which certainly looks like what they're doing.

On the other hand they do this for a reason. They expect the price to rise soon and want cheap shares to profit from.

They don't play these games to lose money.

The end result someday will be good for us.