It didn't gapdown (Yes, I had plans for gapdown), yet it went down right off the open, I got out lost 300 bucks, and played again and got even, now at this point (10:59 EST), I am sitting on 20k shares at .28 waiting for a run... the reason I liked it is, the Spread/Price ratio is so good for short term and the liquidity is not an issue (Spread/Price = 1c/28c > 3%), imagine INTC ($32ish now) has a point spread and move 10-15 pts a day... why I am NOT trading it? (I have less than 6k dollars involved and each tick is $200... its Friday and I am going vacation next week..fun ) Good Luck
I mean, what the heck, with a 20 cent risk, what can go wrong... donate some money to what has been called the "biggest bankruptcy in US history" (if it declares).
Someone asked me if it gaps than what would I do. I'd wait and watch a 15 minute bar. If it can break the high print than I'd go long with a VERY tight stop. No entry yet --but have to admit I'm not watching it too closely. Rtharp
It finally happened. The bankruptcy was filed today. As expected, Dynegy is being sued. http://www.msnbc.com/news/666406.asp?pne=msn I was reviewing old VHS tapes this afternoon, and I discovered that one unmarked tape is an 8-hour recording of CNBC made weeks ago when all kinds of Enron rumors began circulating. Maybe I will archive that tape forever.
ENE will not be delisted for quite a while. The bankruptcy is expected to take years before it is completed. ENE could trade for a long time just like ATHMQ. Nonetheless, if you are holding any of this junk stock be sure to get out of it as soon as possible. There is no hope for Enron anymore. It is really sad to see this company go. Another reminder of the golden era of trading now past.
Now that ENE has gone bankrupt, why is it trading higher since declaring the news? Isn't the common stock technically worthless, since debts outweigh the assets of the company?
>Isn't the common stock technically worthless, >since debts outweigh the assets of the >company? Actually, I believe that if you look at the filing, you will find that the debts *don't* outweigh the assets. As I recall it was something like 35/50 in favor of the assets. I assume this is one reason they chose 11 rather than 7. They just don't have the liquid assets to pay their immediate debts and needed the time and space to wiggle. Now, as to why it trades where it does ??????? In this case I would say that certainty won out over doubt. JB
Those things happen. Examine the chart of BS, which also filed bankruptcy in recent months. The stock hit a low of .15 on 10/16/01. Then it recovered to .60 in the days following before settling into an exremely tight and narrow range. Today there is steel industry news that has the stock trading up to .47. But would you touch this stock? Never! Leave it alone. There are many more good, reliable stocks to choose. Yet, you can be sure that, just as people are thinking Enron must survive somehow, there are stockholders telling themselves that Bethlehem Steel must survive because the company has been around since the Civil War.