I went long a few shares at .09 only due to the extreme oversold conditions over the past 7 days.
Am in this for a bounce, and as you said, the shares should be tradable for at least the next several months.
Shorts do indeed cover, and at this point, a downside of only .08 versus an unlimited upside may have them taking notice.
What perplexes me the most is that since November 6th when the 8-K statement said "The Company does not expect to be able to distribute any proceeds from the Asset Sale to shareholders and therefore continues to believe that the shares of its common stock are worthless." -- the share price did NOT budge an inch up or down. It maintained equilibrium in the .60/share range.
WHY ?
Why did shares of FBNIQ trade in a sideways range between .55 - .60 for about two solid weeks, then BOOM!! down she went with significant bounces along the way.
But NEVER did the price per share just head IMMEDIATELY down to .08 from .60 like one would think after the company states they believe all shares of its common stock will be worthless.
WHY ?
Why did shareholders NOT panic sell the shares a day after the November 6th 8-k verbage?
In my opinion, what we are seeing here (this past two trading sessions), is pure tax loss selling to lock in maximum losses for the year.
Like you stated previously, this stock will continue to trade until the entire BK proceedings are complete. There will be MANY high percentage bounces along the way as shorts cover and momentum traders ride the wave up.
Check out this chart and try to hypothesize why the PPS just didn't collapse after the November 6th 8k report.
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