I bought 20,000 shares at .151 at the close. I put the order in a few days ago when the stock was trading at .30. It is apparent that the market maker saw the bid and brought the stock down to fill it. Had I really believed that the stock would reach .151 before the delisting, I would have bid 100,000 shares, not 20,000 shares. This stock is a carbon copy of what happened to CHHP. The stock was on the NYSE, the price fell to 20 cents and the stock was delisted and went OTC. A stock for debt deal was subsequently made with bond holders getting 92% percent of the stock with existing shareholders getting 8%. There was then a 1 for 35 reverse split. Eventually the new controlling sharehoer offered $9.50 a share for the remaining shares which was sweetened to $9.75 a share. The stock traded as low as 12 cents before the stock for debt deal was announced. Both companies are the leading producers in their fields - CHHP manufacures batteries, FRZ is the largest manufacturer of ice products. If the creditors decide to keep the company alive which is the only way to salvage their investment, a similar deal like CHHP's is a strong possibility. If so, the stock would appear to be cheap at his level. The risk is 15 cents, the reward could be substantially more. Do your due dilligence and decide for yourself.
This is huge news. Having experienced big corporate individuals accumulating shares is indicative of a turnaround situation. These guys don't take positions in corporations unless they intend to influence the direction of that corporation.
Good post. This is what we need.With those large blocks being registered indicates to me that the insiders are not
preparing for Chapter 11.There is some type of ownership change in the makeing!!!
Good luvk Longs!!!!
I looked at the SEC filings. There is a greater than 10% owner registered now. The initial filing was in November (was greater than 5% at that time), then another filing this January - now greater than 10%. Who knows? I am not getting my hopes up.
In your example, if one knew that bottom was 12 cents, one could have made a double. A double months after wondering whether it would be worthless seems not enough benefit for such a risk. I seek faster rebounds and/or potential for multi-baggers, such as in some bankruptcies.