Here's a little story that will blow your mind, it will really make you think about your Investment here?
Back in 2005 I played a few NASDAQ Dead Cat Bounces, but one company in particular that I played was called Foamex International. Now I had done my homework on this comp. & they were the 3rd largest producer of foam in the world (Beds, Couches, Auto seats, ect ect), they were trading around $8.00 ok, well as it turned out the Board of Directors at the time were running the company like their own personal ATM, lavish vacations, huge bonuses, ect. ect. and drove the company to the point of BK.
Make a long stort short, rumors of BK dropped the share price down to .15 so I bought a bunch of stock, 1-2 weeks later the Dead Cat Bounce went up to .25-.30 and I about doubled my money & bailed, basically Flipped the DCB.
The shareholders fired the BOD's, they hired a new CEO who had a track record of Bringing Companies out of BK and back to profitability. I flipped it in Sept. 2005, they Filed for BK in Oct. 2005, but it was only Chapter 11 Reorganization BK.
Anyways, the stock spiraled down to .02/.03 by Jan. 2006. At the time I still had the stock on my radar and I should have picked up some shares while at 02/03 LOOKING BACK I WISHED I HAD HELD WHAT I BOUGHT AT .15 AND NEVER FLIPPED IT AT ALL!
3 MONTHS LATER IN APRIL 2006 THEY EMERGED FROM REORGANIZATION BANKRUPTCY AND ROARED FROM 02/03 UP TO $6.00 WITHIN 2 WEEKS!!!
Everyday I Remind Myself of the 150K shares I FLIPPED FROM .15 TO .27-28 and IF I HAD ONLY BEEN PAYING ATTENTION @ 02/03 OR JUST TUCKED AWAY ON THE SHELF WHAT I BOUGHT @.15 AND NOT LOOKED AT IT PERIOD, LOOK WHAT WOULD HAVE HAPPENED?
The sad thing is that I had done my homework and KNEW this company would bounce back, they had Revs in the BILLIONS! They have since bought out all shareholders & went private.
Think about this the next time you feel like Dumping your DEWM shares???
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