Investing: Any thoughts on Delphi Corp Stock?
 

Delphi has gained a lot ( .30 to 1.72) over the last month or so. Anyone have any insight inot this stock and if now is a good time to buy?

Re: Investing: Any thoughts on Delphi Corp Stock?
 

What does they do again? i.e. what industry are they in?

Re: Investing: Any thoughts on Delphi Corp Stock?
 

Company makes parts for vehicles..

-Negative Book Value
-Increasing Losses
-SEC investigating pension fund

I found these all in 2 seconds in addition to the fact GM is buying less parts from them.

That's enough for me to stop. These were all easily findable without even reading a quarterly report.

What exactly is the question here? If you are considering it you must have done some research of your own. What thoughts do you have?

Re: Investing: Any thoughts on Delphi Corp Stock?
 

In spite of all that you have stated ( all correct) the price has gone up. And it looks like they are re-structuring. So i guess a better quesion would be why is the price going up?

Re: Investing: Any thoughts on Delphi Corp Stock?
 

Do you realize that they are bankrupt?

Re: Investing: Any thoughts on Delphi Corp Stock?
 

[ QUOTE ]
Do you realize that they are bankrupt?

[/ QUOTE ]

ding ding ding ding... I did notice that like right after I made the initial post. I wasn't too interested and felt those were enough negatives. I guess they were initially a division of GM that was spun off and since then have had problems to say the least. I don't know if GM or someone will be buying them. They do have one profitable division and seem to make parts GM _needs_. This looks like a mess as it looks like GM needs some of the parts they make so maybe it rose on speculation of it being purchased.

This quote did interest me:

"Analysts such as Sanford C. Bernstein's Brian Johnson have said a walkout at Delphi would lead to the bankruptcy of Detroit-based GM, the world's largest automaker, within four months."

from this article:

http://www.bloomberg.com/apps/news?p...c&refer=us

Re: Investing: Any thoughts on Delphi Corp Stock?
 

DPHIQ has been awesome so far, i can't see it going too much more and have been scaling back on my sizes on it....hopefully some of you guys have made good coin on it too.

Re: Investing: Any thoughts on Delphi Corp Stock?
 

[ QUOTE ]
DPHIQ has been awesome so far, i can't see it going too much more and have been scaling back on my sizes on it....hopefully some of you guys have made good coin on it too.

[/ QUOTE ]

Why did you buy it?

Re: Investing: Any thoughts on Delphi Corp Stock?
 

[ QUOTE ]
[ QUOTE ]
Do you realize that they are bankrupt?

[/ QUOTE ]

ding ding ding ding... I did notice that like right after I made the initial post. I wasn't too interested and felt those were enough negatives. I guess they were initially a division of GM that was spun off and since then have had problems to say the least. I don't know if GM or someone will be buying them. They do have one profitable division and seem to make parts GM _needs_. This looks like a mess as it looks like GM needs some of the parts they make so maybe it rose on speculation of it being purchased.

This quote did interest me:

"Analysts such as Sanford C. Bernstein's Brian Johnson have said a walkout at Delphi would lead to the bankruptcy of Detroit-based GM, the world's largest automaker, within four months."

from this article:

http://www.bloomberg.com/apps/news?p...c&refer=us

[/ QUOTE ]
Delphi is a parts maker spun out of GM and GM has guaranteed some of it's obligations. Delphi is critical to GM's operations. Right now Delphi is trying to get a judge to impose lower wages and benefits on UAW workers. If they succeed, it's a big plus for them and GM (and the american auto industry).

Essentially Delphi carries the "optionality" of a UAW walkout that not only puts GM into bankruptcy, but probably ensures that Delphi shares are worthless. I don't know how to handicap the likelyhood, I would think the UAW isn't dumb enough to do it, but who knows.

I'm staying far away from this one, so I don't have a clue if the positive scenario ends with Delphi stock still being worth anything. Quite often in bankruptcy all outstanding shares are canceled and new shares given to the creditors. Remember that while you are trading Delphi for fun and profit:)

Re: Investing: Any thoughts on Delphi Corp Stock?
 

i intially bought on a technical breakout and have been in and out on momentum....

Re: Investing: Any thoughts on Delphi Corp Stock?
 

DCNAQ another Q that has had an incredible run...

Re: Investing: Any thoughts on Delphi Corp Stock?
 

[ QUOTE ]
I'm staying far away from this one, so I don't have a clue if the positive scenario ends with Delphi stock still being worth anything. Quite often in bankruptcy all outstanding shares are canceled and new shares given to the creditors. Remember that while you are trading Delphi for fun and profit:)

[/ QUOTE ]

I am a little confused about this. If they come out of bankruptcy, all outstanding shares are canceled and new shares are given to creditors? How does this play out, can you provide more detail on what this means?

Re: Investing: Any thoughts on Delphi Corp Stock?
 

[ QUOTE ]
[ QUOTE ]
I'm staying far away from this one, so I don't have a clue if the positive scenario ends with Delphi stock still being worth anything. Quite often in bankruptcy all outstanding shares are canceled and new shares given to the creditors. Remember that while you are trading Delphi for fun and profit:)

[/ QUOTE ]

I am a little confused about this. If they come out of bankruptcy, all outstanding shares are canceled and new shares are given to creditors? How does this play out, can you provide more detail on what this means?

[/ QUOTE ]

If the outstanding shares are cancelled that means that any shares that you own are now worth zero. The stock will begin trading again but you will not own any of this new stock. This is how most bankruptcies work, occassionally the old stockholders will get around 2.5%-5% of the new stock just to keep them quiet, and very rarely the old stock will not be cancelled.

Re: Investing: Any thoughts on Delphi Corp Stock?
 

welcome back ff, wondered where you had disappeared to...

Re: Investing: Any thoughts on Delphi Corp Stock?
 

more trading and less poker so i've been coming here less [img]/images/graemlins/frown.gif[/img] but my trading account is thanking me for it ....too bad rockrock never lived up to his bet...he woulda been destroyed [img]/images/graemlins/smile.gif[/img]

Re: Investing: Any thoughts on Delphi Corp Stock?
 

This makes sense but out of curiosity, what is the likeleness of a company as big as delphi esentially liquidating its stock and re-distributing new stock? Also, if you buy stocks on pink sheets, is it the same when you want to sell the stock? Thanks for all the input by the way.

Re: Investing: Any thoughts on Delphi Corp Stock?
 

[ QUOTE ]
This makes sense but out of curiosity, what is the likeleness of a company as big as delphi esentially liquidating its stock and re-distributing new stock? Also, if you buy stocks on pink sheets, is it the same when you want to sell the stock? Thanks for all the input by the way.

[/ QUOTE ]

DELHPI IS BANKRUPT. It doesn't matter how big they are.

Re: Investing: Any thoughts on Delphi Corp Stock?
 

[ QUOTE ]
This makes sense but out of curiosity, what is the likeleness of a company as big as delphi esentially liquidating its stock and re-distributing new stock? Also, if you buy stocks on pink sheets, is it the same when you want to sell the stock? Thanks for all the input by the way.

[/ QUOTE ]

GM will likely be filing soon as well, and it's many times the size of delphi. Enron and some of the airlines that filed were very large companies as well. Size doesn't matter. If a company can't pay it's bills, shareholders have to get in line behind debt-holders. If there isn't enough to pay all the debt, the shareholders get nothing.

Delphi's stock will probably continue to trade on the pink sheets for a while, when it stops who knows. Note how Enron's stock traded for a long time after the bankruptcy and after the company had publically warned shareholders the stock was worthless and going to be canceled.

Re: Investing: Any thoughts on Delphi Corp Stock?
 

almost all bankrupt companies make huge bounces

Re: Investing: Any thoughts on Delphi Corp Stock?
 

[ QUOTE ]
DCNAQ another Q that has had an incredible run...

[/ QUOTE ]

oh and don't forget CPNLQ