LKSD, at under 10 cents per share, is currently trading at less than one one-thousandth of annual sales. What brought is down to this level is clearly the serious threat of a bankruptcy filing. They are a struggling company operating in a struggling industry.
Even if they end up filing for BK, it is very common for stocks in bankruptcy to continue trading for many months, and sometimes more than a year. So although there is a significant risk of LKSD filing for bankruptcy protection, that does not translate to the stock immediately (or even quickly) being worthless.
Bare in mind that retailer Sears Holding Corp, while trading in bankruptcy after a chap 11 filing, at one point, spiked more than 900 percent (from under .25 to over $2.50). And there were several smaller percentage spikes as well. Another interesting point is that the very next day after filing for bk, they had an intra-day spike of more than 100 percent.
If LSC Communications is able to avoid bk entirely (although unlikely, but still possible) as was the case with Sirius XM back in early 2009, when rescued by Liberty Media, the stock could easily return back to several dollars per share.
As always, simply my opinion.
LKSD
