Novice's question re: WAMUQ

Discussion in 'Trading' started by wk84, May 25, 2011.

  1. wk84


    Tiptoeing back into trading after making some initial mistakes.

    My question is: What would be the risks of buying up a lot of shares of a stock like WAMUQ? From my angle, it looks like a stock destined to rise in price, as it gets close to exiting bankruptcy. But i'm convinced I must be missing something.

    Any perspective you could give on a move like this would be appreciated, thanks. Given your experience, what considerations would you make when deciding whether to plunge in.
  2. 1) Don't waste your time hoping that "cheapy" stocks will return to their former glory.
    2) WAMUQ should eventually be delisted never to be heard from again.
    3) You could look at it as a short-term trading vehicle but that's about it. :cool:
  3. wk84



    Yeah, I did some research after I posted the question, which clarified to me what actually goes one with shares after a company exits bankruptcy. The opposite of what I thought, which obviously shows how much I know.