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TOPIC: Distressed Companies - xxxxQ

Distressed Companies - xxxxQ 2 years, 8 months ago #1

Does anyone have experience buying equity in distressed companies that have stock symbols ending with "Q"? If so, what was the outcome...made money or lost money on the position(s)?

The "Q" designates that the company is in bankruptcy. Sometimes the equity position is totally wiped out when the company comes out of bankruptcy. Sometimes an official equity committee is formed and there may be a conversion to the new stock. Other times, the company is fully liquidated and the equity position while still last will receive any left over funds once all other parties have been paid.

I have a position in ENERQ and I will post the outcome possibly by the end of 2012.

Re: Distressed Companies - xxxxQ 2 years, 8 months ago #2

I have just recently purchased my first bankrupt company myself. I am not sure what the outcome will be either. I hope it isn't a big mistake but, like you, I really didn't know so I took a gamble. I purchased Patriot Coal Corp (PCXCQ) so far not much has happened with it. Like you, I will post at the end of the year my personal experiences as well. I am considering one more, Eastman Kodak (EKDKQ). Still on the fence though. I feel it is worth the gamble as long as I don't invest too much. I have a mix of small, mid, and large cap stocks in my portfolio that will give me an anchor of sorts to protect my money invested so a little into a distressed company should be fine.... RIGHT??? (I hope)

Re: Distressed Companies - xxxxQ 2 years, 8 months ago #3

Brian, Thanks for sharing. I considered Kodak too. The reason is the potential sale and proceeds from intellectual property. After all first tier creditors are paid, any left over money has to be distributed to the shareholders in case of Liquidation. For Reorganization, equity shareholders will likely be wiped out unless there is an Official Equity Committee. Good Luck.

Re: Distressed Companies - xxxxQ 2 years, 8 months ago #4

ENERQ shares have been canceled/ deleted. The shares are no longer available for trading.

From www.otcbb.com/dailylist/..:
09/04/2012 11:38:16|D||ENERQ||Energy Conversion Devices, Inc. Common Stock|09/04/2012|Bankruptcy Plan effective. Shares cancelled. Deletion time 11:36:25 **|||u|Y|100|Y

I expect that there will be a distribution of monies left over after all expenses are paid. I break even at about $0.03 per share.
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