Replies to post #58 on TBS International Ltd. (fka TBSIQ)

[Hotlead]

Thank you, but that's the known risk you take when you trade bankrupt stocks like this. It's not like trading any other stock. You must be nimble and prepared to lose. You know that going in. I've traded hundreds of these bankrupt stocks and made good money on over 80% of them. You can't ask for more than that. And I've already made some decent money on this one. It could go a lot lower first, but there is still money there to be made, IMHO.

That being said, I realize that the vast majority of these companies common stocks will eventually be worthless. Even those that eventually come out of bankruptcy, typically issue new common stock and have the old declared worthless. It's a game of musical chairs. Just don't be holding too much when the music stops.

[Hotlead]

In fact, as traders, we *hope* this is a "false" bounce! We trade the bounce, selling into it and then buying back lower and waiting for another bounce. Wash and rinse, wash and rinse....
I have already sold the initial "bounce" and bought back in.

In the past three years I can't tell you how many times I have bought and sold all those "false" bounces in all those varies types of Lehman stock, especially the CTs. Same thing with Chemtura and many, many others.