You don't understand. There are multiple bidders lining up, and there have already been 20 non-disclosure agreements signed by interested parties.
They will likely have to re-schedule the sale so that interested bidders can have more time. This will create a spike. But even without rescheduling the sale, there are multiple bids already lined up for the sale on September 21st.
This was a total inside job, and there is no way that they will ever settle this bankruptcy within a year. This will drag out, and some holdover shorts will want to cover.
In the end, shareholders will likely get nothing, but there might just be some sort of deal made with unsecured to end this, as there will be lots of people crying foul to the Judge.
Just take a look at Blockbuster. They filed BK in August or so of 2010. The shares went to 4 cents that day. Then 6 cents a few weeks later. The 15-20 cents, and actually hit over 30 cents on two separate occasions. Two years later the shares are still between 1 and 2 cents.
In the last three days about three million shares of DDMGQ have traded under 13 cents. Someone sold and someone bought. THe market maker has an obvious inventory of shares that he will unload on the public, just like in the Blockbuster case.
Because Digital Domain has a bit of a wow factor, like the Tupac Hologram, and the James Cameron Titanic connection, this is the type of POS stock that can make a nice little run once a few of the bidders are announced.
Lots can go right in the next 6 months, and not a lot can go wrong. It can't trade for less than 0, and it is only 8 cents away, and that is the all time low.
Very low float, too, as insiders hold at least 50 percent of the shares and they have agreed not to sell (August documents on refinancing).
This thing will turn around by next Thursday, if not sooner, as next Friday is the sale, and it will either be rescheduled, which would be good, or they will have it, which will also be good. Multiple bidders is good, even if shareholders never see it. The final price will be way over 15 million. It could easily be 40 million or more, since they are getting everything without the liabilities. That will force shorts to cover.
This one is pretty easy.
