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As you are aware, the timing of the entry is more crucial than ever in Chapter 11 plays, as we are going to be getting possible news in January or February that indicates what POR has in store for remaining shareholders. On a few recent occasions, 200,000 or more shares have been available for cheap pick-ups, while algos perform periodic sells (or dumps) to attempt to lower the daily SP. At such times, putting bids on the ask will not even move the SP but sooner or later these dumpers run out of shares and then we can move upward quickly.
Any news on the restructuring front?
Some one(s) stole some shares for 0.00595 today. I wondered if buy orders in for the 0.005-0.006 range exist so that they could get an easy 30% flip within three days when bids reestablish the floor, or if they are looking to make 100%+ by holding through the POR deadline and making mint. But I won't get into the head of these investors. A lot of their "moves" are computer driven opportunists that sit back and would take advantage of the impatient market sellers. Always use limits if you buy OR sell! It's not hard to avoid taking a haircut if you know their schemes. Speaking of that, I need a haircut, it's been nearly 6 months in my COVID hibernation and I'm starting to feel a little wooly. No, I'm not a sheep.
They'll just continue to drive it down on low volume with no news expected before January's omnibus hearing.
Only took a 400 share buy this morning to move this back into the green with a 30% upswing. Just think of what can happen when real volume comes in? Agreed, the twice extended POR deadline is our line in the sand. It should happen, it's only a matter of how much (or not) the greedy lawyers and the creditors-in-line ahead of us are satisfied with the result of the POR, and give us crumbs. The market seems to have given up on the viability of this, but that gave me the all time opportunity to double my position for under a penny per share, which I never would have even thought possible about a year ago when we were looking at 11 cents a share spikes amid rumors of a bidding war. This is a shell company now. Hopefully as owners we are rewarded for our patience.
Just fyi, Schwab is not charging commissions for OTC shares. Their bid ask info is a little vague because it rounds everything to 0.01 or 0.02, so I use a different window to read the levels and just use schwab to submit orders. They are priced correctly despite the rounding of the ask as it appears on their orders page.
Do you really still pay commissions?
My cost per share average is a few pennies. I'm hoping to double my money. And days like today, while agitating, are opportunities too. I'm a little overextended but shares under a penny are almost free so what have I got to lose? After tax loss selling hoping it settles back into a rhythm.
Don't be ridiculous. Seller just doesn't know how to use limits.
The lack of volume today would seem to suggest there are no more sellers. Just one impatient buffoon that let the shares go at half price yesterday, couldn't set proper limits I guess for whatever reason, and got eaten alive by me and a few other opportunistic lowball bidders.
Is it obvious? The market manipulators are taking advantage of the low volume to scoop up half priced shares. It is basically computerized so I don't want to make it sound rational.
I got some of those cheap .007s and .009s. What a gift.
Noticed that someone dumped over 400,000 shares yesterday and today an additional 100,000 shares. I suspect there will be a lot more of this in the coming weeks. I used the opportunity to double my position and shave some off my cost basis. I'm fully maxed now in hopes that this will one day run again.
It's interesting to see Marquee Brands in the news as a 3 billion dollar company but I feel somewhat removed from them. This scenario we've dreamed up where they go public and buy out the DESTQ shareholders, are there any past precedents we can point to where this occurred successfully?
Thanks for your inquiry. It is an interesting stock for sure. The original deadlines for Plan Of Reorg have come and gone.
It is hard to predict where this will land but for the current share price I figure why not hold onto my shares and not miss out if it runs. Has been awhile since it spiked or had any meaningful volume, but there hasn't been much in the way of news that would drive interest here. So we wait with bated breath for the POR or any other sort of news.
Well I loved this news because it means I can buy more $$$
Not all brokers work the same, however I placed a bid with my broker which considers DESTQ to be compliant again. Thanks for this heads up!
A sale like that is one disgruntled investor getting an early jump on tax losses and jumping below the bid like a scared loser means he wanted it filled quickly and didn't care about leaving 20% of his money on the table. If it were news based you would have seen more volume. Should return to green tomorrow.
Hoping we can pull off a massive reversal here similar to what JC Penney just experienced yesterday as some of the shareholders have filed an appeal. The company is on the hook for their legal fees. Have shareholders of DEST tried to organize?
https://www.bloomberg.com/news/articles/2020-08-20/j-c-penney-shareholders-at-risk-of-wipeout-want-voice-in-court
I think it was a shakeout, it's common when a stock is plastered all over the news for retail to bid it up, then get impatient and sell. I do think this will trade for $50 someday in 2021, but expect a lot of volatility between here and there while the big whales do their thing and the weak hands fold.
I locked in some profits this morning's premarket and bought the afternoon dip but am wondering if that is the best reentry point or if I should have waited three days for the relentless profittaking and selling to let up.
Why did this judge proceed to take claims after the first filing deadline? If we eliminated all of the duplicate claims and late claims, and accepted the what I presume would have to be all favorable inventory adjustments in the wake of DM website having a blowout summer sale, as well as from the liquidated stores' inventory, shouldn't we be seeing immediate gains? I don't understand the market's reluctance to revalue this to more like ten times these levels, unless it's because many brokers are blocking buyers' access because of some kind of pink sheet reporting deficiency which is BS. This is such gross manipulation of a valuable product. We wait the POR I suppose. But this wait without news and cancellation of the October meeting is very offputting.
After POR is filed, it must be approved, and I don't see how it should be UNLESS there is some compensation provided for shareholders as of the date of sale. I'm confident in our chances, as long as no funny business occurs. After all, this company was our company, and they sold it out from under us to Marquee. They managed to extract a premium for the right to get to be the "sole bidder" which should be distributed among the shareholders. They managed to get in some concessions and raise the bid by allowing them to believe there were two other very interested parties.
Are we supposed to hold our losses forever? With each passing day it baffles me how it's been over a year since this company announced that they were bringing forward chapter 11 filings to "maximize" the value of the company for "stakeholders" and barely a peep since except the lawyers submitting invoices and getting paid. That auction sale never should have been approved without consideration for the shareholders. While negotiating with Marquee, they should have established a minimum to ensure that shareholders got paid what was owed to us. I don't know what amount exactly is left after debts are paid but for 50 million dollars, there should be something left for us to divide up amongst us, something on the order of 50 cents to a dollar would be great for our troubles. Come on lawyers, do the right thing by us and stop treating us like a sub class.
I don't know how accurate this is but I compare this situation to fellow retail BK Aeropostale. They did three versions of a POR, and the stock went from 3 cents to half a cent. If you timed it right, they had a 75% jump in one day before fizzling out.
So when we get a POR, and there is renewed inetrest here, are we supposed to sell the immediate spike? And how do we know when it's done running?
Thank you for those insights. Was hoping to attend the meeting before COVID hit. I wish they were available on zoom.
I wanted to clarify that I am not seeking to buy additional shares, I am in this for the long term but I have already averaged down with my last buys being in the 0.01 to 0.02 range, to a point where I don't think I can buy any more shares without overleveraging myself.
I could have taken the 0.11 offered on the day of the auction announcement. Do I wish I had now? Not really, I still want that $1!!!
I follow the dockets and I see many of our debts were renegotiated. We have seen positive signs on that front, but the market has not really given us credit for that yet. It's hopefully a surprise to unlock when the POR arrives.
No one is calling into question your expertise in stocks, you're obviously the most expert in Q charts, having the longest history of following them as you have demonstrated. I am a mere Q fledgling, I have made some big bankrolls in the past in playing the bottom bounces in bankrupt retail stocks, from timing their bounces and exiting before they crashed, but unfortunately in about 60% of the plays, I also took 100% losses in some properties that went to zero so I am aware of those risks. We can say that my portfolio's companies that folded were somehow "different" or "more risky" or "the signs were there" but the fact remains that I entered all of them as a pure lottery play, knowing full well they could go to either zero or 10. So I cannot blame anyone for taking those risks, it was part of my overall risk calculation.
However, it appears to me that we are having a significant barrier because we speak totally different languages. Regardless of your incorrect interpretation of the sentence, we are both enthusiastic longs in DEST and we are holding for the same singular reason, which is that there could/should/would be some value in the remaining assets to unlock. I am simply interpreting the below statements very differently, likely because I speak a different language than you, and I caution you from applying inferences that are not visible from where I sit.
No assurance can be given that, as of the result of the Bankruptcy Petitions, the Company’s equity securities, including common stock and options, will not be cancelled and extinguished (without any monetary recovery to the holders thereof).
The phrase "without any monetary recovery thereof" is not where the emphasis of this sentence is. It is merely an afterthought, because if it were the point of emphasis, the sentence collapses on itself with totally changed meaning so as to be rendered a useless claim. It is either a baseless claim or a useless claim. You would not NEED to tell investors they have assurances of getting paid because such a sentiment is impossible! And by saying you "won't not not" get paid, that is a triple negative and it doesn't even make sense in English.
So let's interpret what they truly meant by it. It's nothing but a standard disclaimer, so they don't get sued if you "don't not not" get paid. Logically speaking, it is not a 100% deterrent from investing, it is just a way out should the value outcome not come to fruition for any of several reasons why BK plays don't pan out with value in over 90% of cases.
Yes, when POR is finally filed, we hope we might see finally get to see some movement on price for better or worse, whether it be through increased prospects of the common's value, or merely because the news causes ticker to hit some scanners and some wires get put out about book value that could reach some interested parties. Right now it's been a liquidity issue. I'm happy to hold it because there really is no market to sell it without taking a loss to the bid scalpers, until prospects change.
Welcome and thanks for your question. At this time, we are waiting for that plan of organization to be filed by the company. The assets have been mostly sold off to Marquee Brands in an auction ($50 M). However, the shell company still should contain some value to liquidate. As such, we are still operating under an assumption that some of that residual value may flow to us shareholders but there is not a guarantee of this in bankruptcy. We also hope that the company can derive value of the tax losses since it continues to operate at a profit, the Marquee Brands may see some value in a reverse merger when the company exits Ch. 11. All of this is of course speculative until we see the documents being filed. As you see on the threads, the consensus of our members maintains that the upside of this stock will potentially come to fruition because of the number of claims being settled is a positive sign as well. We also hope that November will be a pivotal month, however many of us have been tied up in this for a year and we recognize that some CH 11 cases may take awhile to fully settle.
Yes, low volume stocks are subject to manipulation. Too bad it doesn't have more buyers... yet. But plan of org being due and final next month, I would expect a run out of that. Hang tight.
Sorry guys, I'll try not to let days like today "get to me." After all, the entire markets were down 3%, so we at least have a safety net in DESTQ
Sorry, I can not be silence! I believe the writing on the wall means "don't sell" because after all, I own more shares than were traded today, so do I even have a choice but to lose even more money if I take a hit like that. They can't take my shares!
Pretty soon we will know if your alternative facts definition of the disclaimer was in fact bullish or just bull-ish.
OK that track record sounds good. The quote still is a disclaimer, so let's not read extra into their word without.
By the way, on the docket front, the debtors have applied for Sept 30 extension on the Sept 16 deadline for claims. Can someone tell me why this keeps getting extended? Is this DEST's attempt to wipe debts off the balance sheet by telling the debtors that it's a matter of time?
We are all moving toward the same goal, and we are in this for the long haul. However, I contend this is not the quote that ensures our success. I am afraid that a slight misreading was applied to the below sentence, which could have the opposite meaning. But I am aware that the standard disclaimer may be required by law and does not necessarily limit our outcomes. So, hopefully, you're still 100% correct and we successfully emerge from the BK.
I already have reached my personal limit in shares I can own (25k) so I won't be playing that game, but I wish I could. I have done rather well with averaging down and playing the waiting game usually.
That's an interesting scenario. Would this be a similar outcome to what happened under the American Air restructuring? How come there is really no public info by now? Is there any positive sign for shareholders? Ultimately we need a judge to approve our POR and then we could be in the money, right? I remember the BK judge making comment during our Chapter 11 filing , the asset sales at auction were resembling more like a merger/buyout than what you usually see in bankruptcy.
Sometimes it's good to remind ourselves that this company was bid on for north of 2.50 a share and was darn near bought out at that price, then was bought out for 3.57 a share in December at auction. Granted, there are debts to clear but where the heck is our money and how long will we be waiting for BK resolution? I want to get paid! My kids need to eat...
Right around October 2019 the company issued a statement that they believed Chapter 11 was the only and best way to ensure a return value for their stakeholders. Did they mean bondholders, or us?
Would anyone not be okay with about 40 cents per share? I think I would be happy to sell if it ever reached those pre-BK levels.
Next step is can we crack a 1,000,000 share volume day to arrive on some scanners, then next step is a day where we are up 70%+. When/if will we do it? I'd say we need a big result in the outstanding rents and more than mere speculation about the NOLs's.
It may be news to some that not every order is presented on level 2. I am not saying level 2 can't tell you anything, but keep it with a grain of salt. There are no guarantees, it's not a crystal ball.
Welcome to the room. The Plan of Reorganization delay is not untoward. They are apparently using this additional leverage to settle claims. The company has made inroads with this process and we can only hope that the value of the remaining assets which were not sold can still be transferred to shareholders. This is essentially a shell company at this point but a very inexpensive share in case you like to gamble.
Not too surprised this happened, as is customary with retail bankruptcies. I think we'll still be settling in to 2021. I guess people will sell for tax losses, so maybe we'll be able to "average down" yet again.