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For me at this level people trading it are in for a quick flip or arbitrage and lunch money only-I don't think the are looking for anywhere near $.10-it would take real positive news to move the stock price to that level.
Sometines excrement floats but I am not sure it can't bounce. lol
I don't like to see anyone lose money, but imo throwing money at this stock over the last few weeks like there was no tomorrow with announced bankruptcy looming was insane,makes no sense and is nothing more than wishful thinking and not facing reality.
I can tell you with 100% certainty from experience that over time that folks who chase stocks which have lost 97% of their value or even close to that and hoping for a comeback are going to lose and lose BIG!
Lemmings and masochists invested in this stock should be delighted at the turn of events and present state of the company and stock price.
Certainly not to brag but in my 45 plus years, I have been there and done that(thankfully no more) and have learned that by clinging on to false hopes and seeing things that aren't there and holding on or even adding more shares in the overwhelming number of cases will simply exacerbate one's losses.
Attention all passengers.
The captain has advised that everyone fasten their seatbelts as PSun has begun its descent to its final resting place, which is Ground ZERO.
What I am saying is that big time investors/big boys would never get involved in this investment as a long time investment because of the serious financial problems facing it.
Sure hedge funds and others looking at for a quick flip would get involved with it for arbitrage and other quick money services.
In short if you mean that the "big boys" are simply vultures swooping their wings moving in for the kill with companies like this, then yeah I agree that the "big boys" might consider this and companies like it as fodder.
The REAL "big boys" don't get involved with garbage companies/stocks selling at $.05 on the brink of bankruptcy the last I heard other than perhaps for quick "lunch money." lol
I agree.
Based on my personal experience going back to the last 60's as well as historical date, the overwhelming number of companies facing the same situation as Pac Sun and especially in this price range go bankrupt making one's investment a total loss.
There are rare exceptions, but based on this company's seven or eight years of consecutive losses and general impression, imo this company does not fit into the former category.
Judging by the 98% decline in the stock price over the last year, the fact that they haven't turned a year profit in eight years and the declaration of bankruptcy "might" indicate that nationwide sales aren't going too well.
The fact is that what the type of clothing they sell is out of favor, and that in any case the youth they cater too is a lot more interested in electronics, video game and lots of other things before clothes-it is no coincidence that other stores are facing the same problem.
Imo it is a big mistake to gloss over the declaration of bankruptcy and what I said in first paragraph.
The current stock price is quite reflectvive of where this company stands at the moment.
Imo to invest anything more than a fraction of one's investing capital in this company is an unwarranted gamble.
We have a Pac Sun at our local mall.
It seems like everytime my wife and I walk by it, we not only do not see anyone in the store but no sales staff in view either-it is a small but telling sample sizeof whats going on here.
Hot-yeah right!
The stock has lost 98% of its value over the last year.
To say it is hot is like saying that a baseball team which goes 52 and 110 is "hot" because it had a two or three game winning streak along the way.
The news in the last week of impending bankruptcy is what counts here.
If I come back for some hopefully quick lunch money, right around $.02 is where I would enter at this juncture.
I learned the hard way a number of years back that when one invests in a stock like this one which has nothing going for it except seven or eight years of consecutive losses and impending bankruptcy, the best course of action is to get out as soon as possible to cut one's loss especially on rallies and sure as hell not to keep adding to one's holdings like there is not tomorrow at "bargain" prices.
One invests at one's own risk, and no stock owes anyone anything-that is, has been and will be the manner in which stocks and the market as a whole operate.
ps Throw in the self serving gutter slime who manipulate and who are in full control of the stock price like this one, and imo one can/should see why that for the most part buying stock in high quality proven companies is the way to go.
It sure like the Pac "SUN" is beginning its permanent "SUNset."
At this point, imo it isn't worth investing more than 1% of all of one's total investing capital.
It has "held well" all right, all the way down from a 52 week high of $2.67 to a little less then $.06. lol
I am starting to see the usual classic signs I have encountered many times before when a company is in deep financial trouble such as this one-zillions of posts, people grasping at anything to try to find something to make them feel comfortable and positive, such as noting a little buying at the end of the day,stating that another run is coming soon,etc. but just sweeping under the rug the fact that the company is filing bankruptcy and the reasons they did.
I have been there and done myself a number of years ago.
I stopped when I realized that "talking up" the company
and stock price almost always is a fruitless waste of time and at best gives people doing this and those listening or reading a false sense of security.
If this company does somehow recover from all of this, great for all of those who held on and added-for that matter a FEW people get lucky when they play the slot machines in Vegas also.
Each to his own.
In my many, many years of investing, I have learned that the OVERWHELMING number of stocks which topple like this not only over the last few days but over the last last year and with many consecutive years of losses eventually are worth ZERO to the common shareholder.
There are exceptions of course but Pac Sun doesn't strike me as one.
Good luck.
ps For the record I sold all of my shares today.
I might come for a trade at a few cents for a trade or on strength if it gets back over $.10 with good news supporting it.
If a person's house is on fire and they run to get out of it and escape, is that "panicking" or just plain common sense?
Draw your own conclusions from this which was just released about an hour and a half ago:
Pacific Sunwear files for bankruptcy protection
REUTERS 10:02 AM ET 4/7/2016
Symbol Last Price Change
PSUN 0.058up -0.037 (-38.95%)
NKE 60.11down -0.2 (-0.33%)
SPG 206.37down -2.29 (-1.1%)
QUOTES AS OF 11:28:12 AM ET 04/07/2016
* Lists assets of $50 mln-$100 mln
* Liabilities of $100 mln-$500 mln
* Golden Gate to take PacSun private
* Shares fall 42 pct to record low (Adds details; updates shares)
April 7 (Reuters) - Struggling teen apparel retailer Pacific Sunwear of California Inc(PSUN) filed for Chapter 11 bankruptcy protection on Thursday, succumbing to mounting losses and intense competition in the industry.
The company's shares fell as much 42 percent to a record low of 5 cents in early morning trading.
Private investment firm Golden Gate, which plans to take PacSun private after it emerges from bankruptcy, will convert more than 65 percent of its debt into equity and provide a minimum of $20 million in additional capital, the company said on Thursday.
Golden Gate had lent PacSun about $60 million in 2011.
The Anaheim, California-based retailer listed assets in the range of $50 million to $100 million, and liabilities of between $100 million and $500 million, according to a court filing.
PacSun listed sportswear maker Nike Inc(NKE) and mall operator Simon Property Group Inc(SPG) among its top creditors, to which it owes $5.7 million and $3.8 million, respectively.
The company also said it had a debtor-in-possession credit agreement of $100 million with Wells Fargo Bank.
PacSun's top investors include investment firm GI2 Ltd, which owns a 28.6 percent stake, and Adage Capital Management LP with a 14.1 percent stake.
PacSun said it would continue to operate all of its 600 stores and does not expect the bankruptcy filing to have an immediate impact on employees.
In a separate filing, subsidiary Pacific Sunwear Stores Corp listed assets of $100 million to $500 million and liabilities of $100 million to $500 million.
PacSun, which retails the Kendall and Kylie Jenner clothing line, has been able to report a profit only once in the past six quarters as intense competition from fast-fashion retailers and online rivals has led to slower sales growth.
Rival Aeropostale said in March it was exploring strategic alternatives, including a sale.
PacSun said fourth-quarter sales rose 0.5 percent to $232.9 million.
The case is in the United States Bankruptcy court, District of Delaware, Case No: 16-10882.
The stock had fallen 96.6 percent in the past 12 months as of Wednesday's close. (Reporting by Yashaswini Swamynathan and Ramkumar Iyer in Bengaluru; Editing by Sunil Nair and Anupama Dwivedi)
Perhaps symbolically and appropriately the name of this company should be changed to Pac SunSET as it appears that there is a good chance that permanent "sunset" is about to occur with this company.
I think you meant to say $.03.
Perhaps the words ignorance, stupidity, delusion and fantasy are better choices.
The reality is that the company has lost money every year since around 2008 and is deep, deep financial trouble.
I said yesterday that plowing money into this stock or one under similar circumstances like there is no tomorrow amounts to riverboat gambling-at times the experience of being in the market for over 45 years does have its benefits.
Imo I and many others will be selling their shares today simply to salvage something here without hope or expectations of buying back cheaper for the simple reason that we believe that the stock price will most likely go to ZERO or close to it!
All I can say is that I am thankful that I added very modestly over the last few days(in small thousands of shares) in comparision to what I could have added if I wanted to (in the many hundreds of thousands) or even in the millions of shares if I really wanted to gamble like some in here did.
Personally I think the odds ae overwhelming that it is lights out for this company.
Does anyone suspect rampant market manipulation and/or illegal insider trading during the huge rise and then the collapse of the stock price after the news?
Show me the stock price/money!
Again I hope you are right.
If I was convinced that this was a slam dunks you imply and I was not as conservative as I am, I could easily buy up five million or even ten millon shares at present level if wanted to press.
For now I will nibble until/if I see more reason to buy more which in any case would never come even remotely close to the number of shares I mentioned above.
I have made most of my money over this great bull market in high quality and proven stocks with earnings, and not in struggling companies like this one.
Good luck and lets hope for the best !
I made quite a bit of money myself in several oil stocks an an oil etf myself over the last few months because I thought they were undervalued ad that the price of pil would go up.
Imo oil in general for obvious reasons is a far diffent animal from a struggling company like PacSun where out of favor clothes are involved.
The Overall point is that many, many companies actually can and go bankrupt under similar conditions facing PacSun, and to suggest otherwise is delusional and simply untrue.
jmho
EVERY ONE??? lol
Sorry-as an investor for more than 45 years and as a person who has been around life 71 years, I don't believe that!
I have taken huge risks also in the past and have made huge gains just as I have taken huge risks and lost all or more of my investment-lets tell the ENTIRE truth here!
Hope you are right!
By my standards a 100K investment in this stock would warrant an overall portfolio value of around 10 million dollars.
If I had just $1 for everyone of these overly optimistic projections over the many years I have seen over the many years I have been investing which DIDN'T come close to coming true, I would be a little bit wealthier than I already am. lol
Imo riverboat gambling.
Here is some more news why caution is advised:
Teen Retailer Pacific Sunwear Expects to File for Bankruptcy in April
DOW JONES & COMPANY, INC. 11:55 AM ET 4/5/2016
Symbol Last Price Change
PSUN 0.1005down -0.2491 (-71.25%)
QUOTES AS OF 12:21:47 PM ET 04/05/2016
Struggling teen retailer Pacific Sunwear of California Inc.(PSUN) is expected to file for bankruptcy by the end of April, according to people with knowledge of the matter.
Pacific Sunwear's plan to file for chapter 11 protection comes after it hired restructuring firm FTI Consulting Inc. and investment bank Guggenheim Securities to get a handle on $160 million in debt slated to mature later this year, The Wall Street Journal reported last month. At the time the retailer was considering restructuring options both in and out of bankruptcy court, according to the people.
Now the retailer, with few options left, is said to be preparing a chapter 11 filing that could happen at some point in April, the people said. However, no final decision has been regarding the timing of the filing and Pacific Sunwear is still in discussions with its advisers and creditors, the people added.
Pacific Sunwear's debt load consists of a $100 million revolving loan with Wells Fargo Bank NA, and $60 million term loan backed by private-equity firm Golden Gate Capital, both of which mature in December. When the Golden Gate- backed term loan matures, Pacific Sunwear will be required to make a $27 million paid-in-kind interest payment.
Pacific Sunwear, FTI Consulting and Guggenheim didn't immediately respond to requests for comment. The company's lenders declined to comment.
The company's stock traded at about 10 cents on Tuesday morning.
Pacific Sunwear, which had sales of $826.8 million in 2014, has yet to release fourth-quarter 2015 and full-year results. The company had $11 million in its coffers as of the end of the third quarter, and already had $35 million borrowed under the bank revolver.
The Anaheim, Calif.-based retailer has been hit with the same industry headwinds affecting peers that have already sought chapter 11 protection, or are struggling to turn around their business as teens continue to pour money into electronics and athletic wear.
In March, Pacific Sunwear's competitor Aeropostale Inc. announced it hired advisory firm Stifel to explore strategic alternatives, including a sale of the company or a restructuring. The news came as little surprise following numerous quarters of declining sales and operating losses.
Abercrombie & Fitch Co. announced last month that its full-year net sales fell 2% and plans to close about 60 stores in the U.S.
Since 2014 retailers that have filed for bankruptcy in the sector include Quiksilver Inc., Wet Seal, dEliA*s Inc., Deb Shops, and Cache Inc.
Write to Lillian Rizzo at Lillian.Rizzo@wsj.com
(END) Dow Jones Newswires
04-05-161155ET
Copyright (c) 2016 Dow Jones & Company, Inc.
Read the link I provided.
The stock is trading where it is and hasn't show a profit for seven or eight years because the company's products have fallen have fallen out of favor-it is that simple.
All I am stating is that it is ok to average down a bit but responsibly, which doesn't include throwing money at it like it is a lead pipe cince that this company and others like it are going to recover.
I have owned shares in this company and like everyone else show a large perentage loss.
For the record I added a bit near the lows for today.
That said, and thius is directed particularly to the optimists, imo at this juncture this stock along with some other speciality retailers are out of favor, and there is no guarantee that things will turn around soon or ever.
I have been investing for over 45 years(mostly in high quality companies), and bankruptcy is not a term which should not be taken lightly.
My overall advice based on my many years of investing is not to go overboard with this stock or any stock with bankruptcy proceedings because historically speaking the odds are against you.
http://www.ibj.com/articles/57947-long-struggling-surfwear-chain-nearing-bankruptcy