Bankruptcies

I have been doing these for years. The debt can often be traded well after announcements when forced sellers are dumping. Or, wait until the POR (Plan of Reorganization) is filed, or approved, when you can see what you will get in return for the old bonds/preferred/common. I am currently in (base common symbol), ACIIQ, CJESQ, HK, LSTMF, SDRPQ.

Anyone here do this stuff. As I say I am very experienced in this so sadly no newbies need apply- it's very complicated and I have no time explaining all this. However, experienced people I would like to talk to.

 

I played some of the commodity bonds, entering back in February/March. FCX, X, CHK, BTU, EXXI, and a couple others. So far all worked out to be very profitable. Only thing left I hold is BTU and EXXI. Both up significantly but with the bankruptcy proceedings going on that could of course quickly change. EXXI I need to lock in my cost on it and let the rest ride. I've locked in part of it but not the full amount.

Anyways, I was just thinking the other day I need to do some digging and see if there are any other good plays in the making now that I'm out of most of these. I'll check out the ones you posted later tonight when I'm at the computer then maybe chat some more.

 

Im confused. Unless you have inside information that the commons will stay in tact it's no different than momentum trading. Theres been a small fraction that have successfully been able to do this.

 

I think he is referring to the bonds not stock.

 

Thanks for clarifying. I need to learn how to read

 

I just checked my account and realized I had a payment come in from my EXXI bonds on Monday...that is very odd considering they are currently in bankruptcy. I need to get caught up on the news with that apparently. That or maybe it was a mess-up and they will take the money back. Really not sure what to think.

 

I think you should send it back. Be a team player.

 

Haha maybe the next one! Considering the price I bought these for, that was a 75% return on investment just from this one payment LOL

 

remember the claw back of profits, with madoff. hopefully this is not the case.

 

So on Sandridge, looks like the plan is being voted on 9/6. What I read (not sure how recent it is) says the debt holders will be receiving the equity in the new company. Kind of surprising with that outcome the bonds are still just trading at 6 cents on the dollar. Are there different issues of debt not included on the deal?

@A.J. Sutton are you thinking after the vote the position will be worth considerably more than the current levels the debt is trading at?