Post# of 3650
Next 10
Send PM
Followers 3
Posts 2186
Boards Moderated 0
Alias Born 08/15/2006

Re: None

Wednesday, 12/27/2006 3:19:12 PM

Wednesday, December 27, 2006 3:19:12 PM

Post# of 3650
FYI on bankrupt stocks--

I've seen too many people think they'll make a killing on the Qs (nasd adds a q on stocks in bankruptcy). You can trade 'em and make money off of other people's ignorance but remember one thing : most times when the company exits bankruptcy, it's old equity gets cancelled. Worth nothing. NADA.

Think about it: they are bankrupt because of too much debt. Usually if a company survives restructuring, all of the debt holders get paid in order, and fully, before the equity holders get anything. Usually, there isn't enough to go around.