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Author: WizardPhool Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 3879  
Subject: Re: MIRANT (MIRKQ after bankruptcy) Date: 10/26/2004 1:20 AM
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I've often thought of just dumping them and going on, but before I do that I have a few questions I want to ask after reading some of these posts:
- what does coming out of bankruptcy do to the shares I have?
- will they just "vanish" perhaps?
- reverse stock split?
- will they (hopefully) climb up in value and I can make some more?

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I have heard on a reliable morning radio show that when companies come out of bankruptcy, all outstanding shares are voided and they issue new ones. The previous shareholders are also at the bottom of the list of creditors, meaning that after the companies assests are sold off, they get paid last. That is probably why shadbus got a check for a penny. That's all the money they had left!

I wouldn't hold out for a reverse stock split. Those are bad news all around because it shows major company instability (from another radio program on the afternoon commute).

There is an idea in the technical analysis world about opportunity costs. For every day your money is stuck in this $0.40 stock and you are praying that it will go up, you are losing out on the very real chance of making your money work for you in a winner. Do yourself and your money a favor and sell. Put it behind you, chalk it up as a bad trade and a learning experience, and move on. You will be better off in the long run for it. Hope this helps.

The Wizard
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