Michael- its funny you mention WEL because I have been watching that trading as well and drew that same conclusion..
Part of the reason I followed it was because it burned me.. I went long a ton of shares at some 25-30 cents, and when they announced the chapter 11 possibility I did the smart thing and bailed.. How sick it made me to see it trading in the mid 2s a few weeks later..
.. but like you said- it was interesting how the minute they had a cofnirmed well on fire the stock started to freefall.