Owenq

[NCubed]

What's causing this massive sell-off and where do I enter? All the news I read pointed towards positive earnings and such. I'm baffled.

[bludevil007]

im wondering the same thing, this is ridiculous - i bought low, way low, but even im down a lot now. unbelievable.

[Kevin Wong]

Me too...I bought in at $1.59. Maybe I'll have to double-down. I have no idea why the huge sell-off.

[bludevil007]

im playing with this week;s house money right now, so i decided to up my position by 2/3 at 1.25 as soon as i saw it go up a little again. but it seems to be dropping back, crazy...

[jeffwils]

This is off Marketwatch.com...

Primarily as a result of charges related to the company's Chapter 11 case, Owens Corning recorded a loss from operations for the year 2005 of $3.743 billion, compared to income from operations of $427 million in 2004.

Also...

Owens Corning filed a revised plan of reorganization, available at www.ocplan.com, with the United States Bankruptcy Court for the District of Delaware on December 31, 2005. While this filing is a key step toward emergence, a number of additional steps remain in the process, including creditor voting and Court approval.
The Bankruptcy Court scheduled Owens Corning's disclosure statement hearing for April 5, 2006, where it will determine whether the plan provides sufficient information to allow creditors to cast an informed vote on the plan. Confirmation hearings in the company's Chapter 11 case are currently set for July 2006.

When they emerge from bankruptcy they can cancel all of the stock. Be careful...I lost my ass when United Airlines did that. I thought it would be a great thing to buy up a lot of that stock and reap the rewards once they emerged. My inexperience cost me a lot of money on that one.

That's just my 2 cents.

[bludevil007]

Well, managed to squeeze a miniscule gain out of this one today, it was scary for a while there. TCG, what's your exit strategy on this one?

[xboilermaker]

The shareholders section of that plan answers every question that I was curious about.

[Damon]

What will happen to Owens Corning's stock?
As our Plan of Reorganization currently states, existing shares of OC stock will be cancelled once Owens Corning emerges from Chapter 11 (meaning it will have no value and will no longer trade) and new stock will be issued and distributed to creditors. As currently drafted, Owens Corning's Plan of Reorganization does not provide any recovery for existing shareholders.

So what is going to happen to everyone who purchased OWENQ today? If the reorganization plan states that "all shares of OC stock will be cancelled" and "reorganization does not provide any recovery for existing shareholders", then why are people still fooling around with this stuff? Sorry if these are n00b questions.

[bludevil007]

this is an asbestos litigation plagued company. But the Chapter 11 reorg plan has been around for a while now and the filing has been public information for months. you guys still think that's the reason the stock fell off today? i dont think so.

[jeffwils]

When they emerge from BR the stock is cancelled and is worthless. They will usually tell you when that day is. Two reasons I can think of for people to buy it is that they just plain dont know the stock will be cancelled or they are daytrading...buying on the dips and selling on the highs. You can still make money on it that way. My rule now is to stay away from bankrupt companies. I had a lot of United Airlines and I got burned bad when the news came out that they were cancelling the stock. Personally I think it's BS...I dont go to a car lot and buy a car then someone comes along and says "hey...I know you paid for it but I am taking it back and giving you nothing for it." The United Airlines deal nearly wiped me out. I have only me to blame though. The info was out there I chose not to research it. Thought it was easy money. WRONG! Consider yourself lucky that you know about the fact that companies can and WILL cancel their stock when they emerge from bankruptcy.

[bludevil007]

i recognize the risk involved, that's why i was buying on the dips trying to make some quick cash when it went back up (which i was actually able to do today, although not to the extent id hoped, since the fall was further than expected). I dont plan on holding for more than a day. Now, I remember the UA thing, because i remember you had posted about the stock and i (like you are doing now) immediately posted saying you should not buy, but that was only because you didnt know the stock was going to be cancelled and thought it might eventually reach its former heights. this is a pure trade for me, as i hope it is for everyone else who bought today. otherwise, everyone is going to be screwed. im taking my profits (hopefully not losses) tomorrow and moving on, haha.

[Joel90069]

Looks like many of us failed to do our homework. I bought at $1.48. At least I learned something for my anticipated loss. I'll probably try and get out tomorrow. Any other thoughts on an exit?

[jeffwils]

I forgot I posted that question. I was well informed then. That was an expensive mistake.

[jeffwils]

People keep hammering home the homework thing. I live by it now. I screen my stocks and do the analysis...then the last step is to go to marketwatch.com and check for news and bankruptcys. Never again will I buy a bankrupt company's stock...that's just my rule though.

As for an exit strategy...I would just dump it, pick myself up, dust myself off and get back in there (on a different stock). You could hold out for a runup in the morning...but then you run the risk of loosing more. Again...just my opinion. There are a lot more seasoned traders on the board than I. :)

[bludevil007]

i agree with jefwils, watch it constantly and i wouldnt hold for very long AT ALL. I plan on getting out tomorrow with whatever profit i can. I wouldnt be surprised if there was a morning run up. if so, get out. I got in at 1.48 and again at 1.25. Im looking for an early rise and then to cash out at somepoint tomorrow.

[Joel90069]

I agree. My instinct says get out immediately. I appreciate your comments Jeff and Bluedevil.

[jeffwils]

Just as a comparison. My UA stock went to $1.31. It never hit that ever again. It dropped slowly at first then the bottom fell out. I was $3000.00 up at one point. I dont even want to tell you how much I lost. RESEARCH RESEARCH RESEARCH. Hope it helps.

[englishman26]

I did a similar thing on UA. I have a mental post-it note scarred onto the inside of my head! I don't want to buy anything ever again with a Q at the end!

[BOOOYAHOOO!]

Veeeery interesting. About 2 or 3 weeks ago our republican leadership was tryin ta come up with a way to let these "asbestos" companies off da hook with a limited liability claims law they was woikin on ta help make da rich even richer. Purty much saved da big Kahuna of these companies, USG, from a complete and total collapse in fact. USG had just fallen from da upper 80's into the high 70's and then the news came out about how the special interests seemed to be gettin their way with da fokes in Congress. I wonder what happened here all of a sudden. Did our lawmakers just put all other business aside while they try and figure out if George W. Bush is in fact losing his mind?!! :) I'll tell ya what....this is probably one time when you can make more $$$ playing a BK company like this POS OWENQ or anudder little asbestos dawg ACKHQ than you can by betting on da big Kahuna USG! I'd wait for USG to take out the recent $90sumthin high though befo ya short, cause that's actually how da mega muny will be made. And like I said befo, when idiots are at play and they can't afode the most grossly overpriced best of breed stuff like Cramer says to buy for the final run into certain death....they always go wit cheap....cause cheeper is better when idiots are at play, remember that. *-)

[jeffwils]

Amen Englishman. I aint buying anything with a Q on it again.

[englishman26]

I'm not even buying LAQ and they're not even bankrupt!

[jeffwils]

OK...THAT was funny!

[bludevil007]

sometimes the risk is worth the reward! up big this morning, i cashed out with a nice profit. Thanks TCG! You da man!

[Joel90069]

Things turned out ok for me too with OWENQ. I still don't understand why people would trade a stock that will be worthless in a few months, though. Can anyone fill me in?

[jeffwils]

see my reply on page one of this thread...toward the bottom.

[BOOOYAHOOO!]

Now I can't ignore ACKHQ, the one I brought to da table. How can you ignore a gapdown to .65?!!! LOL Would most of you guys say it is "too risky" to buy ACKHQ if it broke below the .65 low? I am basing my buy decision on what you guys say! :)

[jeffwils]

I stand by my rule...no stocks with a Q in them. I might miss out on a runup but after taking a beating in UALAQ I refuse to do it again. Just my rule though.

From Marketwatch...

Feb 06, 2006 /PRNewswire-FirstCall via COMTEX/ -- Armstrong World Industries, Inc. (Armstrong), the operating subsidiary of Armstrong Holdings, Inc. (ACKHQ :0.73, -0.11, -13.6% ) , today announced that at a status conference in Armstrong World Industries' ("AWI") Chapter 11 case held in Philadelphia on Friday, February 3, Judge Robreno of the U.S. District Court indicated that he would approve a proposed order scheduling a hearing to commence on or about May 23, 2006, to consider confirmation of a modified plan of reorganization ("Modified Plan") to be filed by AWI on or before February 21, 2006. AWI expects the Court to issue a formal order on this matter shortly. The Modified Plan will be substantially similar to AWI's previously filed Fourth Amended Plan of Reorganization except that it will eliminate the distribution of warrants to shareholders of AWI's parent company, Armstrong Holdings, Inc. This modification is consistent with the recent decision by the Third Circuit Court of Appeals upholding Judge Robreno's previous ruling that the issuance of the warrants under the Fourth Amended Plan violated the so-called "absolute priority rule" of the Bankruptcy Code.

[bludevil007]

People trade in shares these because (as jefwils has already said) (1) day traders trade the ups and downs based on (2) the likelihood of any recovery for shareholders. Bankruptcy proceedings are tricky, and while creditors always come first, and the plan may deny shareholder recovery, sometimes thecompany can squeeze something out for the shareholders to benefit. Considering these companies' major liabilities come from asbestos-related litigation, and that there seems to be a possibility of congressional limitation or control of that liability, there is still a market for these seemingly "valueless" shares. Still, it's probably the riskiest of investment types. Yesterday all these stocks took a huge hit beecause of the story i have posted below. Today I rode owens up, and i managed to make a decent profit because i doubled down when it hit rock bottom yesterday.

Proceed at your own risk, im not giving any advice, except that today proves that you can make some mad money off of bankrupt companies, haha.

Take a look at the news about the Senate blocking the asbestos-relief bill:
http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B48BA0010%2DAA8A%2D4904%2DA9F8%2 D7DD5C59A7FFA%7D&source=blq%2Fyhoo&dist=yhoo&siteid=yhoo

[Kevin Wong]

I think I'll put in my stop limit. I made out pretty good with this one...although it sure would have been nice to get in at the 1.20's.

[BOOOYAHOOO!]

I think I'll put in my stop limit. I made out pretty good with this one...although it sure would have been nice to get in at the 1.20's.

OWENQ just hit 1.72, I'll see what I can do about gettin it back down into da 1.20's. And if ya say pleeeeeez....I'll even see if I can take out da 1.16 low fer ya! How's that? :)

[TheChartGuru]

I personally love stocks that end in Q. I've traded OWENQ before. How can we forget WNDXQ? Just have to buy them when they are in the gutter and wait for the MA(200) in the 1 minute. That's what my crystal ball says to do. Hope you guys made a killing with OWENQ..time to move on the next victim. Look at my NAVR post. Also watch BMD

The Guru has spoken

[Kevin Wong]

I'm gunna have to watch this stock. Everytime I refresh my account, it goes up a few pennies. I wish I could just set a stop-limit, but Ameritrade won't let me due to its classification as an OTCBB securities. BOOYAHOO, how much are you holding?

[BOOOYAHOOO!]

I'm gunna have to watch this stock. Everytime I refresh my account, it goes up a few pennies. I wish I could just set a stop-limit, but Ameritrade won't let me due to its classification as an OTCBB securities. BOOYAHOO, how much are you holding?

Huh? Why would I be holding any if I just tod ya I was gona bring er down to the 1.20's agin? :) Lower if ya say pleeez! You do like to buy low, sell high I hope. :)

[Kevin Wong]

I thought you were insinuating that you owned a grip of shares and were going to dump them...driving the price down. Anyways, I'll just sell once I see a small dip.