DLWI - Picked up a Mack sized portion on the cheap.
First real purchase I have made in near 1/2 year. Looking for a longer term hold with a hopeful dead cat opportunity to get to free shares.
Company went Chapter 11 yesterday with plan to liquidate operations and pay off creditors. Thus it looks like no replacement issue of common stock is likely, nor does it look like they will be issuing stock. The hope is that remaining assets will pay off creditors and they will see the current common stock as an asset to spin off to someone as a shell.
As of last 10Q, company had decent positive shareholder equity but this was concentrated in its property value and cash flows were very negative forcing them to default on their debt covenants. It is not unreasonable that the bankrupcy and liquidation process will allow creditors to be made whole and the common stock will survive for some brand new purpose.
The good news, 6M OS at current price of .014 gives the whopping market cap of $84,000.
Hard to imagine there is much stock left to dump as probably 2.5M shares were sold yesterday out of 6M. Possible this also may have a nice short position as company financial troubles were well documented over the last few years.
Will take a while to play out, but short-term bounce is quite possible.
Mack
If somethings hard to do, then its not worth doing - Homer Simpson
