Airline Stocks..con't..

[derg]

Looks like simplified Han, but you'll have to check with TonyW (who I presume knows Han) or "The guy who lurks but religiously shows up to NetworkJC that broke his back in a car wreck".

 

[SteveC]

The Google website just says Chinese (Simplified), so TaDa!!! I have no idea what "Han" is, or what any other options would be. I'm just a googling foogling!

 

[blee256]

Let me help you out here.

Give me the money you want to "invest" in NWA, Delta, and UAL.

I'll kick you in the nads, give you half the money back, and a roll of TP.

You'll come out ahead.

Why? Because once those companies emerge from Chapter 11, guess what happens to the stock that's trading now? It gets cancelled.

Kaput.

Gone.

Fini.

Hasta la vista, au revoir, sayonara, so long, farewell, auf wiedersehen, good bye.

If nobody listens to one post other than this one, I will have done some good in this world.

Oh, and why the TP?

Because unlike the stock, you'll be able to wipe your butt with it.

um, thank you charles schwab.

I didnt say UAL or DAL, just NW. I think NW will be just fine as a company. I cant see them going away.

But could you explain to me how a stock would just get cancelled when emerging from BK? if that is the case why would anyone inviest in any company in BK?

 

[wheelsup]

um, thank you charles schwab.

I didnt say UAL or DAL, just NW. I think NW will be just fine as a company. I cant see them going away.

But could you explain to me how a stock would just get cancelled when emerging from BK? if that is the case why would anyone inviest in any company in BK?

The US Governemnt could better answer this question!

What Will Happen to My Stock or Bond?

A company's securities may continue to trade even after the company has filed for bankruptcy under Chapter 11. In most instances, companies that file under Chapter 11 of the Bankruptcy Code are generally unable to meet the listing standards to continue to trade on Nasdaq or the New York Stock Exchange. However, even when a company is delisted from one of these major stock exchanges, their shares may continue to trade on either the OTCBB or the Pink Sheets. There is no federal law that prohibits trading of securities of companies in bankruptcy.

Note: Investors should be cautious when buying common stock of companies in Chapter 11 bankruptcy. It is extremely risky and is likely to lead to financial loss. Although a company may emerge from bankruptcy as a viable entity, generally, the creditors and the bondholders become the new owners of the shares. In most instances, the company's plan of reorganization will cancel the existing equity shares. This happens in bankruptcy cases because secured and unsecured creditors are paid from the company's assets before common stockholders. And in situations where shareholders do participate in the plan, their shares are usually subject to substantial dilution.

If the company does come out of bankruptcy, there may be two different types of common stock, with different ticker symbols, trading for the same company. One is the old common stock (the stock that was on the market when the company went into bankruptcy), and the second is the new common stock that the company issued as part of its reorganization plan. If the old common stock is traded on the OTCBB or on the Pink Sheets, it will have a five-letter ticker symbol that ends in "Q," indicating that the stock was involved with bankruptcy proceedings. The ticker symbol for the new common stock will not end in "Q". Sometimes the new stock may not have been issued by the company, although it has been authorized. In that situation, the stock is said to be trading "when issued," which is shorthand for "when, as, and if issued." The ticker symbol of stock that is trading "when issued" will end with a "V". Once the company actually issues the newly authorized stock, the "V" will no longer appear at the end of the ticker symbol. Be sure you know which shares you are purchasing, because the old shares that were issued before the company filed for bankruptcy may be worthless if the company has emerged from bankruptcy and has issued new common stock.

During bankruptcy, bondholders will stop receiving interest and principal payments, and stockholders will stop receiving dividends. If you are a bondholder, you may receive new stock in exchange for your bonds, new bonds, or a combination of stock and bonds. If you are a stockholder, the trustee may ask you to send back your old stock in exchange for new shares in the reorganized company. The new shares may be fewer in number and may be worth less than your old shares. The reorganization plan will spell out your rights as an investor, and what you can expect to receive, if anything, from the company.

The bankruptcy court may determine that stockholders don't get anything because the debtor is insolvent. (A debtor's solvency is determined by the difference between the value of its assets and its liabilities.) If the company's liabilities are greater than its assets, your stock may be worthless. Contact your local Internal Revenue Service (IRS) office or call 1-800-829-1040 for information about how to report worthless securities as a loss on your income tax return. If you don't know whether your stock has value, and you can't find a stock or bond price in the newspaper, ask your broker or the company for information.

http://www.sec.gov/investor/pubs/bankrupt.htm

I'm guessing people buy these "penny" stocks because you can buy many thousands of shares for little money, and if the stock goes up $0.10 or even less you could make a lot of money if you dump it right away...? That's my best guess.

~wheelsup

 

[tonyw]

um, thank you charles schwab.

I didnt say UAL or DAL, just NW. I think NW will be just fine as a company. I cant see them going away.

But could you explain to me how a stock would just get cancelled when emerging from BK? if that is the case why would anyone inviest in any company in BK?

Doesn't matter what you think of United, Delta, or Northwest. When they filed, their current stock became worthless.

Why people "invest" in companies in chapter 11? Because they don't understand what it means. It means buh bye stock. They think, well, NWA's not going to go away, so I'll profit when they come out of chapter 11.

All well and good except the stock that you buy won't be worth a hill of beans when they do emerge from chapter 11.

 

[typhoonpilot]

Doesn't matter what you think of United, Delta, or Northwest. When they filed, their current stock became worthless.

Why people "invest" in companies in chapter 11? Because they don't understand what it means. It means buh bye stock. They think, well, NWA's not going to go away, so I'll profit when they come out of chapter 11.

All well and good except the stock that you buy won't be worth a hill of beans when they do emerge from chapter 11.

People aren't necessarily buying the stock so much as closing a short trade. I shorted NWAC at $4.00 and profited nicely when it dropped off the cliff. When a bunch of people who are short suddenly decide to buy ( close their position ) the stock will show an uptick.

The original question involved making money with airlline stocks. Cramer is an idiot, that is why he has become a commentator. He couldn't survive as a money manager.

You can make money with airline stocks, but you need to know when to buy and when to sell. Luck helps a little with that. A good friend of mine bought 100,000 shares of AMR at $3.00, I think he ended up selling it around $10.00. Not bad profit, huh ? it could just as easily have gone bankrupt, they were very close. So he was lucky.


TP ( and that's not the TP referred to in this thread )

 

[FlyingNole]

I got in on this thread late, but let me just say this.

I bought $2,000 of JBU stock while it was an IPO...If you guys know what happened to it on its first trading day, let's just say, I paid for all my flight training because of that. So airline stocks may not be good in the long-term, but boy, if you catch it at the right time

 

[Maximilian_Jenius]

People aren't necessarily buying the stock so much as closing a short trade. I shorted NWAC at $4.00 and profited nicely when it dropped off the cliff. When a bunch of people who are short suddenly decide to buy ( close their position ) the stock will show an uptick.

The original question involved making money with airlline stocks. Cramer is an idiot, that is why he has become a commentator. He couldn't survive as a money manager.

You can make money with airline stocks, but you need to know when to buy and when to sell. Luck helps a little with that. A good friend of mine bought 100,000 shares of AMR at $3.00, I think he ended up selling it around $10.00. Not bad profit, huh ? it could just as easily have gone bankrupt, they were very close. So he was lucky.


TP ( and that's not the TP referred to in this thread )

....gasp another person who shorts airline stock!



-Matthew

 

[stuckingfk]

I got in on this thread late, but let me just say this.

I bought $2,000 of JBU stock while it was an IPO...If you guys know what happened to it on its first trading day, let's just say, I paid for all my flight training because of that. So airline stocks may not be good in the long-term, but boy, if you catch it at the right time

How'd you get in on that IPO?

 

[tonyw]

....gasp another person who shorts airline stock!

I'd say the banks that are financing the bailouts, which demand the airlines extract concessions from their employees as part of that bailout, have a hell of a lot more to do with the pressure put on the employees than an individual investor.

One guy shorts a stock? Who cares? Nobody notices. Nobody cares, and management doesn't go and demand concessions because of it.

But when Citi or Chase or B of A demands it...

 

[Mr_Creepy]

I'd say the banks that are financing the bailouts, which demand the airlines extract concessions from their employees as part of that bailout, have a hell of a lot more to do with the pressure put on the employees than an individual investor.

One guy shorts a stock? Who cares? Nobody notices. Nobody cares, and management doesn't go and demand concessions because of it.

But when Citi or Chase or B of A demands it...

For the record I have NEVER shorted any stock!

I'm a 'hold 'em" kind of investor

 

[tonyw]

For the record I have NEVER shorted any stock!

I'm a 'hold 'em" kind of investor

Closest I came to shorting anything was right after September 11. I told my boss at the time, you know, if I bought some October puts for the Dow and S&P 500 right now, I'd make some money.

And he said, yeah, you would, Tony, but it'd be blood money. Do you want to make money that way?

 

[Mr_Creepy]

Closest I came to shorting anything was right after September 11. I told my boss at the time, you know, if I bought some October puts for the Dow and S&P 500 right now, I'd make some money.

And he said, yeah, you would, Tony, but it'd be blood money. Do you want to make money that way?

Tell you the truth Tony, I wouldn't even know how to go about it.

I do all my stock stuff in very small amounts.

I rarely speak to a person, it's all via email and mail.

 

[SteveC]

For the record I have NEVER shorted any stock!

Also "for the record" I believe that they were referring to typohoonpilot's statement that he shorted Northwest, not implying that you had shorted. It's not all about you, you know!

 

[Mr_Creepy]

Also "for the record" I believe that they were referring to typohoonpilot's statement that he shorted Northwest, not implying that you had shorted. It's not all about you, you know!

I think it was me they were referring to.

BUt of course, I could be wrong

 

[SteveC]

I think it was me they were referring to.

BUt of course, I could be wrong

Post #26

People aren't necessarily buying the stock so much as closing a short trade. I shorted NWAC at $4.00 and profited nicely when it dropped off the cliff. When a bunch of people who are short suddenly decide to buy ( close their position ) the stock will show an uptick.

Post #28

....gasp another person who shorts airline stock!

Post #30

<snip>One guy shorts a stock? Who cares? Nobody notices. Nobody cares, and management doesn't go and demand concessions because of it.<snip>

Post #31

For the record I have NEVER shorted any stock!

I'm a 'hold 'em" kind of investor

You did say "could be", didn't you?


Now, just to clarify the situation I have it on highest authority (my wife!), that the person at the center of the universe is, indeed, my wife.

 

[Mr_Creepy]

Might have been the continental express thread

 

[Maximilian_Jenius]

Might have been the continental express thread

Get over yourself Teeney...no one was talking to you or about you in this thread!



-Matthew

 

[Mr_Creepy]

Get over yourself Teeney...no one was talking to you or about you in this thread!



-Matthew

Coming from you that's a compliment!

And spell my name right. Jokes about people's names show real ignorance. You think we've never seen them before?

 

[B767Driver]

Doesn't matter what you think of United, Delta, or Northwest. When they filed, their current stock became worthless.

Why people "invest" in companies in chapter 11? Because they don't understand what it means. It means buh bye stock. They think, well, NWA's not going to go away, so I'll profit when they come out of chapter 11.

All well and good except the stock that you buy won't be worth a hill of beans when they do emerge from chapter 11.

This is exactly right. I don't understand why the SEC allows this type of activity...buying stock in a bankrupt company. After all, SEC is supposed to protect consumers/investors from getting hurt.

Buying a share of stock from a bankrupt company is like buying a coke from a vending machine...except when you open the can you find there's nothing in there. You's paid your money...yet you's get nothing in return.

The government allows this to happen?

What if you went to Wendy's...paid for a cheeseburger...they say..."sorry no cheeseburgers left"...but still keep your money? There would probably be a congressional investigation...or at least several hearings.