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I came here to sticky your post. My mod powers aren't what they used to be because I'm running out of the gold, but IMO your post is the most critical importance. Your 8/17 date can be the delineator between make or break, as it indicates a deadline to be either retaining value, or forced out at zero.
While I believe there is a likelihood that remaining SP would crash, IF POR comes out indicating that commons are canceled, IMO for positions smaller than 3k in the red, it's worth it to stay in IMO and use the loss against taxes. That's where most of us are probably at right now.
which broker, if you please?
I would also be interested in buying at .02 if there weren't barriers on pink sheets with Fidelity AND Schwab.
I would like to clarify one point about the October Chapter 11 filing you are referring to. Nearly every bankruptcy filing contains this or a similar clause: "Shares are effectively worthless." They have to issue this statement to comply with federal law and to avoid shareholder lawsuits. Now, the statement you're referring to preceded an assets auction which had the potential to, and in fact did, spike shares to 0.10 because at that point, notable returns on investment was still a distinct likelihood. Some people who bought at 5 cents may have made a killing on the prospects of that auction but then unfortunately for us longs, the auction was abruptly canceled when no second qualified bid materialized, and the stock crashed to pre filing levels. I just have to hold onto what I have because it would cost me almost more to sell than to hold on for whatever shred of value may be tied up in those NOLs.
This isn't the first time I have bought a stock that goes to a penny or zero, and it probably won't be the last considering I like to buy depressed stocks for the many multiples that a recovery in asset sales might bring, despite the ridiculously low odds.
Flippers can't make real money flipping a stock that does under $100 in volume in a whole day, so I don't know if flippers are invested in this.
But even if they were, their involvement would be programmatic and pragmatic, not emotional.
More often than day trading, sellers of a bankrupt stock are often just trying to rebalance their portfolio or taking some tax write offs.
I think many brokers having it restricted from trading is making it difficult to generate any volume. That seems to be our only obstacle at the moment.
Have you met our longtime moderator, Value investor? He has some theory about book value that suggests this could fetch many multiples of its current value, 0.018. I think he/she might be very interested in your findings since you guys have some similar experience.
He may even make you a moderator so that you can make each other stickies. Yeah, I'm calling you a schill account, prove me right by what you come back with.
Yeah, I'm calling you a schill account, prove me right by what you come back with.
Yeah, I'm calling you a schill account, prove me right by what you come back with.
Yeah, I'm calling you a schill account, prove me right by what you come back with.
Yes, once again chemist72 comes through with the most rational argument I have seen for the dwindling remaining scenarios for our lotto play.
The only item that I have not seen get a lot of airtime lately is the extremely low float. This evidently has given market makers carte blanche to be able to flip this penny numerous times for free shares. If the float is gone this could easily fetch a 200% return and there could be a run on shares. That's basically why I haven't sold my remaining position.
Not being able to buy shares at Schwab has left me on the sidelines for too long. Can we have an update on which broker(s) are still allowing buys at this time?
I think what could have happened here with DESTQ is that the market as a whole has been experiencing a COVID-19 fallout. Stocks across the retail sector as well as other sectors are behaving sympathetic towards a few retailers going out of business. As you know, volume on this particular stock Destination Maternity has been almost non-existent, which means that anyone who feels the need to free up some cash, dispense of some of the portfolio or even get out of this market entirely, has basically had to accept a discount for their shares, for this is in control of the very few and very slick "market makers," and has been for months ever since retail brokers decided to put heavier restrictions on its trading on their platforms.
Now what we appear have is an arbitrage situation where the market makers can scoop up practically free shares and then hold them short term for the dead cat bounces, or even hold long for a full market recovery which still has a possibility of happening. Either way, they stand to profit.
I am currently in the latter position myself. I find myself now being holding onto slim hopes that we could use that time to turn this online business into a real cash cow and perhaps even flow some of the brand's residual value to the bottom line. Perhaps some governmental COVID relief funding could somehow be infused into this business. Maybe that's why also we saw the provisional employees staying involved through 3/31, so that the company qualifies for some type of SBA loan or PPP grants which would mean that the market's perceived unprofitability for this company might even turn back into solvency on a short term basis. Is this theory at all possible? I will admit it is a stretch and there is no evidence to support my theory yet, but as a shareholder, I'm hoping a recovery materializes while the bankruptcy decision gets postponed by world events.
Thank you. However, I see some likely duplications (3, at least) on this list. If the IRS and two other debtors submitted revised claims, not sure why we can't now just call the original claims "resolved" as they may have been superseded. I must reiterate, the whole process of reviewing the open claims, both secured and unsecured, has been difficult to near impossible for me as an individual investor to keep tally of. Why do they (the lawyers and filers) have to be so obscure in these hearings? There is so little transparency.
DESTQ up again today but on light, meaningless volume. It means nothing until it breaks $0.02 OR 1 million shares, in my opinion.
Waiting on that long awaited great news or even a dead cat bounce would be welcome at this stage.
So on the one hand today's bounce was the best performance in this stock in many months. However, it is masking the overall downtrend in the past week from 0.019 to 0.011 where it currently sits. Agreed with other posters, we need BK news + volume.
I wonder if we're going to see anyone else take advantage of the spread to scoop up a few shares before it rebounds all the way to to 0.01. Somebody just put $850 into this, so that's a promising sign.
Officially sub penny. Didn't get the bounce we wanted.
Would expect shorts to be forced to close positions below a cent and then we can get a moon bounce. hey, it could happen. But I'm not holding my breath.
I am not sowing seeds of division. I am simply stating facts. DESTQ appears to be severely impaired at the moment, based on trading volume being limited to fewer than our holdings in a given day, we are talking about liquidity issues if we were to sell which is the #1 reason I have held this stock, NOT because of my positivity but because it would be so fruitless to sell at this stage. We need, and are long overdue for, a boost from some court news or something different than the same old, "here's another legal invoice for our services" and "insider disposition of shares"! LOL.
I NEVER speak in such absolutes. You just NEVER know what may happen. ;)
DESTQ is a speculation play, it remains very uncertain in my reading whether equity will eventually get a settlement or any piece of the buyout revenue. But since this is priced in, I feel that buying it was worth a risk. And currently retaining it has more value than selling it. For 0.015 per share, I could sell now but what would be the objective? You can't even buy toilet paper this cheap!
Okay, that's your opinion. But how can you claim that nothing's changed at all since filing Chapter 11, when
(1) this has always been a speculative play, and our primary form of speculation ended when the company was sold for less than what it is worth?
(2) Multiple Brokers have not allowed purchases of this stock after it was flagged as non compliant reporting even according to the OTC's standards which are lighter than SEC's for listed companies.
(3) The company has declared that it is insolvent.
(4) The company has declared back in October that its shares may be canceled at any time during reorganization, which caused the shares to abruptly crash in value from 0.23 to 0.11 in one afternoon.
These are our known challenges and there are many unknowns potentially lurking. Good luck to all longs.
Good morning. I skimmed through a UPenn paper last night which discusses the NOL situation from the perspective that current law no longer allows for / requires a majority stakeholder clause to preserve the NOL's for the new company. The paper's conclusion was that equity gets paid a meager amount merely to keep the peace in transitions of power and to avoid the unnecessary delay of costly litigation when trying to close a deal, but that the customary payout is generally considered by most lawyers to be an antiquated practice, for the large part unnecessary, and therefore cannot be banked on in most BK situations. The paper also concludes that equity's eventual stake, if any, is generally aligned with how well represented they are / aren't. Does anyone know if we have a committee and have representation at the recent hearings for unsecured creditors? Do we really have a seat at the bargaining table or are we merely bystanders?
It's probably already been referenced in another post(s) that TD Ameritrade allows OTC buys at the moment. So I wanted to clarify your post. Rather than await that coming, I think it should be clarified that the opportunity is here for this DESTQ to be traded. Today! Hooray!
Different brokers may adhere to different rules. I won't call it unfortunate, it's nothing but a business decision.
Yes if we could just get to the 1M+ volume days again this will absolutely skyrocket. I do wait patiently for the news to come.
Yes thank you. I do read the filings and am aware of the limit clause you speak of, though I am certain that none of us have anywhere near 700,000 shares. The Fidelity and Schwab limits has been imposed on any buys, not just large volume buys.
ALL VALID POINTS! This stock is unlike ANYTHING I have ever seen before, as well.
However, please note, if you were to enter any market or limit order at most brokerages, they can convert that order into essentially a lower "limit" order of some kind which internally prioritizes the acquisition at reasonable cost, such that you and your broker can avoid being taken advantage of, particularly when there is a spread of 45% like we see at this moment. While this feature seems like a hindrance to the share price, it prevents us from overpaying, and then having the market maker pull the rug out from us leaving us with more expensive shares.
A notion or perception, therefore, of us buyers bidding up the share price to the ask is more fantasy than reality. While it can resemble truth based on there being a low float, however it is more dependent on the actual volume than it is based on order limits themselves. I felt this needed clarifying, and I hope you understand the importance of the implication.
A second consideration I have is that at times there have appeared to be near endless shares available which has suppressed share price all the way from 0.04 to 0.015 at times. These sells are not necessarily appearing on Level 2, they filter in gradually but surely, in waves. I think therefore, we need a couple of 100,000 share buys ($2,000+ each) within a couple of hours to not only move this back to respectable levels, but to sustain such a rally, particularly as so many brokers have already blocked this ticker from being publicly tradeable, essentially.
P.S. I stickied your post, numbered 821. I have always felt that even though we may disagree on some of the details and the language, we have fundamentally agreed and are both heavily invested in our words. You and I both believe in DESTQ's long prospects, and so I support everything that you're trying to accomplish, friend.
Thanks. It is very interesting, we seemed to have a 65,000 share sale around 10:30 am this morning which drug the share price from 0.021 to 0.015 which has been pretty much the all time low. With no sellers left this could easily run with a little news. Only thing dragging on it now is the sheer lack of buys, which is no doubt in great part due to the Buy restrictions set in place at almost all the big brokers.
Currently, there appear to be about 2 to 3 daily buyers or sellers of this stock. The liquidity risk is putting pressure on this stock, evidenced by there being smaller daily volume on it, on average, than the shares each one of us owns. And, since we're not allowed to put in new buy orders with most mainstream brokers, the volume continues to be "sales only" which puts further pressure on our already beat up stock price.
I still find it very irritating that DESTQ has become categorized as "not providing information" since the news drops in Prime Clerk almost daily, and they continue to file some events, as required, with the SEC. It seems unfairly harsh to me.
Remember the catalysts are the conclusion of GOB sales, in March, the settling of the 1,500+ outstanding claims, the subsequent rescheduling of the omnibus committee and the drafting and hopefully approval of a Plan of Reorganization.
Two 35k each buy orders happened in the last two hours. Not sure what's shaking or if it's just random noise. So far, volume is still very sporadic.
Thanks for your inquiry. It has since been confirmed, that although Fidelity and Schwab have been treating this delisted stock as a no go, the TD Ameritrade platform apparently is still allowing buys. I called Fidelity today, and they said it would be available again if they start reporting information. Tough to consider when or how they may entreaty that to occur, but I'm not waiting around. I surmise that the dumping will continue at or below 0.02 and I want some chalk over at Ameritrade so that I can buy the dips and sell the rips. It had ripped quick gains of 20% (albeit on light volume) in each of the previous two trading days before today's dip back to the more affordable 0.017.
DESTQ's sale filing indicates that any "cure" costs in excess of 1 million would come out of the purchase price. So, the theory about positive book value appears to be on thin ice, now. What are the remaining plays, fam? I'm sticking to my "nowhere to go but up" defense.
Schwab is currently showing miscellaneous errors as well when I go to buy shares. So no fidelity and no schwab. Who can still buy this and with what broker? Unfortunately, even if there is value remaining, it is no longer seeming possible to buy into this. May I ask how there is any likelihood of a run on a stock that can no longer be purchased? I'm trying to see it from any favorable angle if there still is one.
DESTQ has been relegated to "No Information companies" status which means some brokers will not allow new buys.
Fidelity has locked us out due to this unfortunate status change that appears to be consequential to not releasing any 8k information. So I'm going to try Schwab on Monday and will report back my status.
Yes, the name was first circulated with the original Chapter 11 filing. He is with Berkeley Research Group. Actually, Berkeley Research Group was first hired in 2017 and has been involved in the company's ongoing restructuring efforts for the past 2.5 years. I expect their existing closeness with the financials should mean they are best positioned to leverage our assets based on existing data.
The legal front has been rather quiet and I hope that quiet is good news. This week Fidelity as a broker put us on the dark list, so the quiet has some negative consequences in terms of volume & liquidity. It wasn't long ago we were getting puff pieces from WSJ and the like. It seems like forever ago though, two month's it's been since we had all the rampant rumors and speculation of the big buyout.
Thank you for your research. I remain confident that we will be out of these woods soon if even for just a quick dead cat bounce. I'll take anything at this point.
Firstly, thank you for the quick notification of docket 640. You are even faster than the prime clerk bot and Google bots. Lately you have been our only true friend.
IMO it is not really news that the going-out-of-business sales are commencing through March, and that the debtors could have no data with which to complete the plan of reorganization til that time.
The part in this docket about them still needing to assess whether they have the cash to satisfy all claims and who gets what is not new news either and it is priced into this. As for the stakeholders including Commons or not, there is a little nugget in there about them having tosomehow divide up the 50 million from the asset sale. And never forget, the default bidder Marquee had planned to offer to pick up certain liabilities though not all. And we don't really know yet what any of the implications of that are.
The bid at 1.7 cents and the ask at 2.6 cents sort of looked like a stalemate today with very little volume. There appears to be an ongoing interest in acquiring shares at or below 0.02 but that stalking bidder is only sticking a lowball bid out there to cherry pick any shares dumped at market. This can only go on so long as volumes are low. I too was pleasantly surprised that the bids reached as high as 0.02185 today after a stretch of days stuck in the 0.01s. Again only with a little more volume this kind of move could actually be considered foretelling something.
What amazes me is it looked like there were to be no trades at all for the greater majority part of today. I can't forsee yet if that means a change in chart direction is imminent. By the days end only a few nominal trades had surfaced, same as yesterday while each day was up about 20% each, this ultimately is subject to continued shakeout of weak hands as the bidder plots out a course to try to control more shares. I myself tried to counter the bidder today with my own bid of 0.02 but Fidelity has me shut out of pink sheets at the moment. so may try again with either they or another broker tomorrow to see what the action is like.
Thank you so much for the work you are doing here and communicating your keen observations. Only 134 secured claims were filed through November. What is the nature of these 1,600 unresolved claims? Are they involving real estate or vendors mostly or investors? Is there any way to look at the open list that is more current than my downloads from prime clerk? Thanks.
I use fidelity, and for listed exchange stuff they always get me a good price per share. On OTC my experience had been a little less stellar. You sometimes have to sacrifice a good deal of the bid ask "spread" in order to purchase or dispense of shares, and I do not like that. For instance, today I had a buy order for 0.0161, and it did not fill, despite over 5,000 shares trading at or below that. It's not that I did not want to pay 0.018, but why should I cut into my profits in order to get my hands on shares that were available same time for cheaper? This is one of the qualms of owning OTC stocks. And when I go to sell, if I sell that is, I'm going to have to accept some sort of discount as well, which means I'd be losing on both ends of the trade. This "commission free" model seems like a money saver but make no mistake, the market makers are still very aggressively making their lines and taking a piece of the action no matter whether the stock goes up or down. I was playing the spreads for awhile on some other stocks (not this one) but lately I've not been able to keep up with the High Frequency Traders and their methods of masking the vicious spreads to their favor.
Your success may depend on the timing of the entry/exit more than the strength of a particular recovery, but mostly all of the stocks eventually went to zero, including the ones that had big runs before I sold them.
When someone was willing to pay 0.10 for this very speculative BK play, I could have sold it to them (but didn't sell because we all truly believed at that time that we would see 0.30+ if that second bidder materialized). We will see when the final claims have been settled.
I wish I could say this was the most lucrative Q stock I've ever traded, but it remains to be seen whether this will stack up against some all time greats, among them are:
TGICQ/TGIC - but the five year chart shows no fewer than 7 huge pops, only one of which I was in
TPLM/TPLMQ - now defunct, company went private after declaring bankruptcy. had several huge gains from 0.13 to 0.62, right before it got delisted finally, but when the reorganization process was underway, dead cat bounced between 0.02 to 0.06 range.
SHLD/SHLDQ aka SEARS - we've beaten this topic to death. But it's the same line of business so it bears some resemblances.
ARO/AROPQ - shortly before this delisted, there was a pop from 0.18 to 0.50 and a massive rumor that it was going to emerge from BK
And my all time duds are JRCCQ, HIPP, CXRX and OPHT
Question: If you say the inventory is almost not included in the asset sale, can you tell us (1) where you read that and (2) why that sale was subject to a final inventory adjustment? I think you could have it backwards, which would affect some of your valuations. If you want to grasp at some value prospects, the 1.8M rent savings could bring 0.08 to the bottom line, which could mean an extraordinary 300% increase if not more. But nothing exactly has been confirmed yet.
Welcome to the board. On this we can agree, if we sell our shares we'd have nothing but a tax writeoff and a loss. Our recent entrants at 0.024 and 0.034 look expensive to me now. What you're seeing now I think is someone selling at whatever price and trying to either move on from their loss or dumping shares in order to average down. There seems to be an relentless overburdening supply of shares on the ask. I don't think the exact odds are 50/50. I think from the way it's trading, the market appears to be giving it less than 3% odds of recovery. That could be because the company's debts appeared once to be insurmountable, though the negotiations continue to look about as favorable as could be expected in this position.
This is a consequence of there being almost no volume. I don't know when that seller(s) will run out of shares and this can turn up again. But I'm not dependent on the chart to tell me, I'm waiting for news from the court once all of the debts that have been settled, which could result in our knowing finally what our shares are worth. Let's hope that happens.
Good morning, the filing we both reference includes a list of stores to keep or close, as well as a list of money saved on leases. I am pointing out that the store numbers on each list do not necessarily correspond to the same physical location descriptions, which I feel could mean there are data integrity issues. But why don't we scroll down to those lists and make an interpretation of what it could mean for us longs. Regardless of which stores are closing, the 1.8M in current year and 12M overall saved on lease obligations appears significant enough that it could preserve some capital for reorganization. I do not know with certainty though because the chart has not caught up with a Strong Buy signal (we need volume).
$1.8M in annual rent savings were apparently secured for a mere $125,000 fee. The "total deal savings," which the negotiators value at nearly 12M, were associated with getting out of extensions and future year commitments.
Does this mean that when the POR comes out, our book value may appear at least somewhat more favorable than the last time such was projected? I hesitate to give the guarantee for any of this to work out, but it makes me wonder about a possible reevaluation of our chances.
Also, what should we make of this "keep/close" portion of the document? It had been my impression that we were closing all of the stores. Does it just mean that there is going to be a renewed consideration for keeping some ~233 of the locations open at least in the short term?
Lastly, I was slightly concerned at some inconsistencies in the document which makes it difficult to confirm specific leads. For instance, the keep/close list indicates that Store #508 is International Plaza (Assumed : Tampa). The filing also references Store#508 as in Novi,Michigan. Not sure why the disconnect between reports in the same filing.
Another head scratcher came from one of the rents going in the wrong direction, by $2,000. (Normal, Illinois.) My only guess could be maybe that the negotiation may have resulted in a more flexible plan instead of the full rents due.
Part of me remains optimistic that this should still break out again but is only waiting for confirmation from the POR. I often feel as though these bankruptcy stocks are primarily trading based on the worst possible scenario and that hidden value may still be unlocked before all is said and done. The original filing news was so gloomy in general, but at least we're moving fairly quickly toward some kind of resolution.
I just bought 100 shares. Only 35,000 more to go and these 0.019's may be gone. (Fake wall.)
Why don't we try putting up against that $700 ASK WALL? I'm thinking it would be very easy to blow through that fake resistance at 0.02 pps.