Memorial Production Partners LP (MEMP)

[Imagineer66]

Those who refuse to read the news should NOT invest in bankruptcy or near bankruptcy stocks. These are high risk stocks. Money can be made (and I have made some serious change) but can more easily be lost (done that too). One has to stay on top of the news with BK stocks.

Technical trading has it's place and can be fine in "normal" environments. BK near rulings or motions are not normal environments. A trader needs to understand that the courts and the judge will make rulings that absolutely veto any technical signals 'cuz, quite frankly, he doesn't give a dam* about market sentiment, the price of oil, etc. Those signals nor anything else for that matter will enable one to read the judge's mind. Judges have their own reasoning. The Breitburn judge agreed with equity's arguments and ruled thusly making many of us 5x our money. Meanwhile, a Texas BK judge (sorry, can't remember his name) agreed with the arguments of equity but still ruled against them for legal reasons. That stock plummeted 80% (1/5 the money) in an hour. Who has burden of proof is a huge issue.

There are other issues, such as CODI, but I'm not trying to fear-monger, rather just tell people that they MUST do their due diligence such as reading the news or get seriously burnt. If you can, or choose not to, read the news and do your own valuation calculations, STAY OUT.

GLTA