OPNLguy From , joined Dec 1969, posts, RR:
Reply 1, posted (9 years 4 months 3 weeks 6 days 20 hours ago) and read 3250 times:
Quoting Bucks918 (Thread starter): I gotta think this is a good buy, at 80 cents! The company will either get things turned around or they will get bought out by someone, in either case, the stock will go up! What do you guys think?
I think you need to save your money. IMHO, it's stupid to buy stock of -any- company that's in chapter 11 proceedings, no matter how cheap the shares appear to be, since the stock will eventually be cancelled, i.e. worthless. If one buys @ .80 a share about the best they can hope for is that they'll find someone else even dumber to buy it for $1.00 or a $1.25.
P.S. Nobody is going to "buy" Delta and assume all of Delta's existing debt...
P.P.S. Before you invest (anywhere), consider signing up for investment education courses at your local community college or FunEd or get some books/CDs/DVDs on the subject. One needs to understand how things work, versus hoping for a desired outcome...
Flyf15 From , joined Dec 1969, posts, RR:
Reply 2, posted (9 years 4 months 3 weeks 6 days 20 hours ago) and read 3245 times:
Quoting OPNLguy (Reply 1): no matter how cheap the shares appear to be, since the stock will eventually be cancelled
Exactly correct. This stock will be cancelled. Its value will become absolutely nothing greater than zero. Theres a reason why it is so low even now... Delta's stock isn't worth the paper its printed on. (that is, if it were printed on paper).
In bankrupcies, stock holders are the last people to get anything out of the proceedings. After the creditors are done, there isn't much left. The new stock that is reissued when the company exits bankrupcy is distributed among the creditors, sources of major cash infusions, etc depending on the specific situation. As an individual stock holder, you'd be out of luck.
Whenever you see a stock with ".xx" at the end, be wary. This means they no longer meet the requirements to be listed - something is seriously wrong with this company. Addtionally, people don't avoid stocks that are below $5 and extra fees aren't charged for no reason. These aren't healthy companies.