Strangely, post-bankruptcy rallies are the rule rather than the exception. Enron traded for years after its collapse, the share price going through all sorts of strange gyrations, and if ever there were a case where the stock was known to be absolutely worthless, that had to be it. Occasionally, as in the case of AWA or RAY, there is actually recognizable value that remains in the stock, but that is the rare exception.
Just for amusement, my favorite story of post-bankruptcy price manipulation, which has many a lesson for the unwary, as well as being instructional in the history of "naked short selling" (for those who think it is some kind of recent, evil innovation)--and the judge who wrote the opinion had a fine sense of humor about it all:
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