Comments for Finance and Stock Market

Comment on What happens to my stock when a company emerges from bankruptcy? by stockpicker2010

stockpicker2010 — Sun, 16 May 2010 13:57:59 +0000

Kaiser Aluminum and United have just exited bankruptcy. There is a lag time for distributions to the former accounts and you can find it on MarketWatch.com. Kaiser will be distributed on July 28th and then we will find out how many shares of the new company KALU are worth of our old stock KLUCQ. There should be like a 700:1 ratio or so, according to my math. No one knows until the distribution date.
What that date is for United, I don’t know. But our shares do not just disappear. They are still worth something, don’t worry. Your account will be updated on the 28th with the correct amount of shares and proper value. I just wish it were a 1:1 swap! Wouldn’t that be nice?

Best of luck to you!
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Comment on What happens to my stock when a company emerges from bankruptcy? by Frank Castle

Frank Castle — Sun, 16 May 2010 13:21:59 +0000

Contact their Investor Relations Department and ask them.
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Comment on What happens to my stock when a company emerges from bankruptcy? by scottFL007

scottFL007 — Sun, 16 May 2010 13:08:59 +0000

Probably your stock will be worthless after the deal, but you may get something for it if you're lucky. I had Western Union, and actually got a few pennies for it, since the bankruptcy auction brought in more than expected. But usually, it's a washout.
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Comment on What happens to my stock when a company emerges from bankruptcy? by eaglesonaperch

eaglesonaperch — Sun, 16 May 2010 13:02:59 +0000

The old stock evaporates and you get zero.
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Comment on What happens to my stock when a company emerges from bankruptcy? by Kevin M

Kevin M — Sun, 16 May 2010 12:33:59 +0000

Well, my United Airlines stock just went away. My brokerage stopped showing it in my account after a while.
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Comment on What happens to my stock when a company emerges from bankruptcy? by Stephen H

Stephen H — Sun, 16 May 2010 11:53:59 +0000

Are you referring to Kaiser Aluminum? If so, don't expect anything. There is a reason that the stock is now trading at less than a cent a share.
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Comment on How do I use yahoo to find a stock quote for a certain date from the past? by ES

ES — Sun, 16 May 2010 11:50:59 +0000

After you have put in a ticker symbol, look at the left side of the site. Under Quotes, click on Historical Prices. You can specify a date range and get the prices on those dates.
References :
http://finance.yahoo.com/q/hp?s=YHOO

Comment on How do I use yahoo to find a stock quote for a certain date from the past? by veerod

veerod — Sun, 16 May 2010 11:40:59 +0000

i noticed that there is a beta version of yahoo stocks, and at the bottom right corner, you can change the date range to your heart's content...
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Comment on What happens to my stock when a company emerges from bankruptcy? by Arbitrage

Arbitrage — Sun, 16 May 2010 11:22:59 +0000

It depends on what kind of restructuring and settlement that the creditors came to in the courts. So, the situation is different for different companies emerging from bankruptcy.

Usually, the firm goes to the bondholders (how much depends on the various clauses in the bonds). Then, the preferred and then finally the common stockholders, if there’s anything left by then. Often times, there will be nothing left, so you don’t get any new stock and just a notice that you have nothing now. Sometimes, they’ll scape together a little cash and you might get a few cents per share. You might or might not get the new shares, but you don’t always.

The majority of the new stock will be held by the old bondholders because creditors have a higher claim to the assets of the company. You can always contact the investor relations or the company directly to find out what happened. Your broker might or might not know.
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Comment on What stocks will be a wise investment to hold long term? by Brendan Prewitt

Brendan Prewitt — Sun, 16 May 2010 11:18:59 +0000

You’re looking for a lot of things that others are looking for, however, there is very little out there that meets your requests. Of anything, I would suggest companies like Johnson & Johnson (JNJ), Altria (MO), Walmart (WMT) and Procter & Gamble (PG). I would avoid the pharmaceuticals despite their high yields and relative stability as there is question regarding the drug policy of Obama, who will likely push generics. Therefore, you are stuck looking for companies in the consumer staples arena for the most part, and then very select companies outside that arena that will do well in either a strong or weak economy. However, for the long-term, I would definitely encourage people to invest in commodity-related industries (such as oil, metals, fertilizer, etc.), as they have fallen off a cliff because of our deflationary environment. However, with the substantial monetary stimulus that the government has been injecting into the financial sector, our country will emerge from this in a much weaker financial state than the likes of China (using a fiscal stimulus versus a monetary stimulus) or Japan (has a strong budget surplus, just lent the IMF $100 billion). Therefore, I expect inflation to take a toll on the economy going forward, which may prolong this recession, as it will likely begin its rampage once the economy begins to recover, and will likely exceed the levels we saw earlier this year (oil at $140+). In regards to timing, I can’t help but continue to be bearish on the broader markets. The markets broke my previous expectations of S&P 500 to the 800 level, and I have revised my expectations to S&P 500 to the 575 level. I have done so as the market just broke a long-term support line (from the 2002 market bottom) today, and broke a bearish descending triangle pattern yesterday, which was confirmed today by a failed retest of the previous support line. Therefore, if you do enter any of these companies, do so only with the long-term in mind, and create a dollar-cost averaging strategy to build your position and strictly adhere to it. At some point, there will be a recovery in the markets, but there is little fundamental or technical reason to consider entering the market aggressively now. Just my opinion, I hope it helps.

Best of luck!
References :
http://bptrading.blogspot.com (the technical analysis spoken about above)