Discussion:
AMR Bankruptcy Cancels The Common Stock?
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John Levine
2011-12-09 22:22:52 UTC
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I would be astonished if AMR common ended up being worth more than
$0.00. Bankrupt means your debts exceed your assets, and the common
stockholders come last in line after all of the debts and preferred stock
are paid off.

The real question is who is paying as much as 69 cents for it.

R's,
John
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JF Mezei
2011-12-11 07:23:39 UTC
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Post by John Levine
The real question is who is paying as much as 69 cents for it.
Various funds that cover AMR might still have a position in AMR.
(although such finds provide their retail customers with the same
performance as the stocks that are part of the public portfolio, they
may not be forced to hold the actual stocks).

And there could be day traders. They know when AMR will become a "penny
stock" and be delisted (which should be before AMR formalises some form
of recapitalisation) and provably figure thyey can make money on short
term fluctuations (buy at 0.50, sell at 0.69 wait till it drops back to
0.50 to buy again etc)
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Robert Cohen
2011-12-13 17:35:17 UTC
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Post by John Levine
I would be astonished if AMR common ended up being worth more than
$0.00.  Bankrupt means your debts exceed your assets, and the common
stockholders come last in line after all of the debts and preferred stock
are paid off.
The real question is who is paying as much as 69 cents for it.
R's,
John
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Yes and no in my observation: bankrupts, especially in chapter 11, do
trade, it's another art for accountant heads to play

In some if not most bankruptcies---including apparently all of the
legacy airlines--they cancel the common: yes, and AMR will seemingly
do likewise.

believe it or not, there are shares nevertheless of some "cancelleds"
that are semi infintely traded as low as $0.0001 per share

there are almost a bazillion less than one dollar stocks, and it is
rumored (especially by the gops and apostate democrats) a few
companies on life support

some idiots (including a familiar if not peculiar semi un-handsome
poster) gamble in the cruddies
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