There is ALOT of money to be makde buying stocks that are bankrupt or on the verge of bankruptsy if that stock meets serveral criteria but here are some examples of companies in dire finacial situation or post-bankrupt recovery that have done very very well Calpine .30 to 1.3 AMR $3 to $38 Trump casinos $.30 to $2 Delphi $.2-$3.2 Gm $20-$35 Ford $6-$9 And many others... The criteria is that: the stock has to be soldoff to 52 week lows or even lower. Sometimes the stock will be in the penny range. Stock has to get plenty of media coverage and be wellknown (delphi, gm, amr for example are all well known companies). Obscure scrappy companies dissapear without an iota of coverage but you don't expect a massive wellknown company like AMR to just goaway without anyone noticing do you? Company has to be planning a 'recovery' . Uusally the stock will rally soon after the CEO announces a recovery plan. Rick Wagonner did that in Nov 2005 and now GM is up from 22 to 35. Company has to be 'legit' No enrons or woldcoms. Stock has to have LOTS of employees and assests. There should be more than 1000 emplayees and plenty of assests like buildings and land. All the companies I listed have 1000's of emplayees and assests. You can't tell 3000 people to go home can you? Not so easy. Thats all you have to do. Read the headlines for companies that meet the critetia abover and you may make a lot of money. This method does work.
Well actually, short covering from hedge funds who don't want to wait is enough to run up the price 100% or more. All the rest is unnecessary risk if a true bankruptcy (even reog) is in process. Good stuff but I think you should have kept the strategy quiet. P.S. Don't forget X and HAL.