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Author: EricTaller Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 36696  
Subject: ENRNQ Date: 1/24/2004 4:59 PM
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A very scary name.

The company will be ditching the name and splitting into one company for North America and one company for international business...sometime in April from what I understand.

The stock, again from what I understand, will probably be worthless after that, or at least the stock will not represent one-for-one share in the new companies. Correct me if I am wrong.

Meanwhile, the monthlong chart on this stock shows a significant volume has moved at the high price .19 , and the low price .05.

Again, the name Enron sends a chill down most investor's spines.

But getting in at .05 and out on the way to .20 seems like a possible play. Gotta get some more info (and more guts) before I get serious.

Any suggestions appreciated.
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Author: Jeanwa Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 23220 of 36696
Subject: Re: ENRNQ Date: 1/24/2004 5:42 PM
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But getting in at .05 and out on the way to .20 seems like a possible play. Gotta get some more info (and more guts) before I get serious.


Good idea. Look at the intra day charts too. They are trading in hundredths of a cent.

You could also get in at .05 and out at .02 there are no guarentees. Some people can play these bitties, maybe they will pop in with some hints.

How would you place the orders? What kind of orders would you use?

Jean



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Author: EricTaller Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 23229 of 36696
Subject: Re: ENRNQ Date: 1/24/2004 6:37 PM
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I would buy at market when it was in the 5 or < range.

Sell at limit orders of ...I dunno...

50% @ .10
25% @ .15
25% @ .20

what do you think?

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Author: Jeanwa Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 23230 of 36696
Subject: Re: ENRNQ Date: 1/24/2004 7:07 PM
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Eric,

I really don't know haven't ever traded the bitties.

I know it looks like it moves like that on the daily, but I bet there is a long line for sells at .20, but who is going to buy. I know it looks like some did, but.......

You didn't tell me what you would do if it dropped to .02 or .03 like it did in Dec.

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Author: averagjoe Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 23231 of 36696
Subject: Re: ENRNQ Date: 1/24/2004 7:14 PM
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I did a similar string of trades with PRGN last year while they were in banktruptcy. There was strong trading in the stock with significant price movement between .29 -.55. You can trade these, but there is one thing you MUST keep in mind: the effective date of reorganization. At the close of business the day before the effective date of reorganization any stock held becomes worthless. Sure, there is a reissue of new stock at some later time, when the company's remaining assets are distributed among the old share holders (yes, you are the company)after creditors and bondholders have been satisfied, but this is small consolation. In PRGN's case this was one new share for every 49 shares of old stock, which accounted for a roughly 35% loss, just because I marked the wrong date on my calendar.
Don't make the same mistake: keep an eye on it and play it smart.

~aj

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Author: Jeanwa Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 23232 of 36696
Subject: Re: ENRNQ Date: 1/24/2004 7:22 PM
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Josie,

Did you use a limit buy and limit sell?


Jean

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Author: EricTaller Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 23233 of 36696
Subject: Re: ENRNQ Date: 1/24/2004 7:43 PM
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Jeanwa: You didn't tell me what you would do if it dropped to .02 or .03 like it did in Dec.

ET: AverageJoe pointed out the date of consolidation. If we were coming near to that date and we had not seen a rise, but a drop to .02 ... I guess I would cry a little and know that I had a realised loss for 2004.

From what I can tell with Enron, it is the month of April when this is due.

I think that we could see a rise from now till then as the name gets into the news in a "somewhat" positive light.

This is, I think, what happened with Adelq recently and that got me interested in making some money this way. Appreciate the fact that it is a more likely way to lose money...but nothing ventured...etc.etc.

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Author: Jeanwa Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 23234 of 36696
Subject: Re: ENRNQ Date: 1/24/2004 8:02 PM
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Appreciate the fact that it is a more likely way to lose money..

I don't know about that! Didn't mean to imply that at all.

An easier way might have been to buy enron at the high and average down at it dropped!

LOL

Jean

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Author: zyaw Two stars, 250 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 23235 of 36696
Subject: Re: ENRNQ Date: 1/24/2004 8:07 PM
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With Scottrade they don't take MARKET orders if price less than $1.00
Duane

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Author: averagjoe Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 23236 of 36696
Subject: Re: ENRNQ Date: 1/24/2004 8:20 PM
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Jean:

I can't remember that far back (I do well if I recall last week's trades), but if I want fast execution I usually go with market orders.

~aj

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Author: averagjoe Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 23237 of 36696
Subject: Re: ENRNQ Date: 1/24/2004 8:24 PM
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"Appreciate the fact that it is a more likely way to lose money.."

In my case, I put very little into the first few plays, and was ready to accept losses. But once the initial stake was recovered, I considered anything above it monopoly money and played accordingly. All went well until... well, you know the rest.

~aj



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Author: Jeanwa Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 23238 of 36696
Subject: Re: ENRNQ Date: 1/24/2004 8:45 PM
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At the close of business the day before the effective date of reorganization any stock held becomes worthless. Sure, there is a reissue of new stock at some later time, when the company's remaining assets are distributed among the old share holders (yes, you are the company)after creditors and bondholders have been satisfied, but this is small consolation.

That depends. With KM there was no value in the old common stock.

http://www.kmartcorp.com/corp/investor/general/faq.stm

Is there still a trading market for Kmart Corporation common stock?
No. In accordance with the Plan of Reorganization, when the Company emerged from Chapter 11 on May 6, 2003, the previously issued common stock was cancelled and, as such, trading has ceased.
What distribution are previous equity holders receiving under the Plan of Reorganization?
A Creditors' Trust was established for the benefit of the Company's creditors to pursue all causes of action arising out of the Company's Accounting and Stewardship Investigations. Except possibly for a minor part of the proceeds, if any, of the Creditors' Trust, holders of Kmart Corporation's former common stock are not going to receive any distributions following emergence and their equity interests have been cancelled.


Jean

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