Replies to post #8241 on Magnum d''Or Resources, Inc. (fka MDOR)

[TORPEDO]

[TORPEDO]

Hi Akron,

I didn't buy into MDOR.

Granted, I haven't done any DD on MDOR, but trust volume was up because MMs knew investors didn't know about the news flash yet, so they flipped what they could until people started running the other way.

Interestingly, it's at a silent pause right now.

Instead of rats leaving the ship and dumping big time, looks like everybody's waiting to see what MDOR will do next, e.g., whether they'll pay up or maybe it's simply become untradable.

PPR will undoubtedly plummet if MDOR doesn't act fast.

Financially distressed companies take a while to work out their woos and your money that is tied up in them turns into a nonproducing asset. First, they start slashing salaries / employees / dead weight. Then, they start scrambling. Usually, if the company really is crap, they are blindsided and enter into a state of denial at which time they try to recover by, e.g., getting loans, selling more shares, issueing reassuring and fantastic PRs, etc. Takes a while for management to accept the fact that their company is a dog and they decide to bow out. If they do decide to bow out, don't expect a press release saying, "hey everybody, we're going to force this thing into Chapter 7, but hang with us, because it's going to take a while," lol.

Stuff like this could occur:

-- 1) they try to get a new big new contract (ANYBODY'S GUESS HOW LONG THAT'LL TAKE, especially if suppliers won't provide resources without cash payment upfront);
-- 2) they go for a loan pledging capital (your assets if you're a shareholder);
-- 3) they sell more shares to increase capital;
-- 4) they're forced into Chapter 11 bankruptcy / reorganization and replace management (LONG);
-- 5) they look for someone to buy the assets or merge with;
-- 6) they enter a long phase of taking the company south into a "legitimate" bankruptcy so the Ct. doesn't break the corporate veil if management wasn't responsible, and they'll usually pump the PPS so to get rid of their shares and rig the books to show downgrade the assets quietly until they're positioned to make their move, none of which you're aware of until the PR comes out & you're screwed.

They've got all kinds of options right now. Hard to say what side of the coin it will land on.

You can buy when the MMs take the PPS down to .0001, but the risk is high this might become untradable real fast and take a while to rebound if it ever does. If you're presently stuck holding, watch it carefully or cut your losses. I'd strongly consider cutting my losses, but that's me.

BTW - Auction as in Chapter 7 liquidation? RUN! RUN FAST!

Never fall in love with a stock.