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I'd definately get out and stay away. I learned my lesson on bankruptcy by getting into Kitty Hawk (cargo carrier based in Dallas) at a real cheap price after they announced bankruptcy. They exited backruptcy, but I lost all my shares because of the bankruptcy deal. The stockholders lost all their shares because the creditors that accepted the Chapter 11 re-financing got all the new shares that were issued.

Joel Greenblatt in his book "You Can Be A Stock Market Genius", stated that it is "rarely a good idea to purchase shares of common stock that has recently filed for bankruptcy" - pg 166 and that it "is rarely a profitable investment strategy" - pg 167. His suggestion is IF you want to invest in a bankrupt carrier, invest in the bonds, debt, etc of the company. That being said, that should be left to the ones that specialize that in area.

If you believe a bankrupt carrier IS a good long-term investment, wait till it comes out of bankruptcy, look at the stock value versus what you think the stock is worty and invest as you would in any other stock.

Bottom line, keep your money (or sell, Dale!) and invest your money in a good, solid stock.
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