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#12
06-01-2006, 12:58 PM
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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? 
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#13
06-01-2006, 03:16 PM
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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.
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#15
06-01-2006, 09:10 PM
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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]
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#16
06-01-2006, 09:49 PM
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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.
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#17
06-01-2006, 10:41 PM
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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.
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#18
06-02-2006, 01:05 AM
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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.
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