EXPM:HRTFF - Post by User
Comment by
MudCreekeron Oct 12, 2021 10:40am
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Post# 33997093
RE:RE:RE:RE:RE:RE:RE:RE:What is the pecking order!
RE:RE:RE:RE:RE:RE:RE:RE:What is the pecking order!Here's something to watch for, when the announcement comes: Sometimes, bad news for the shareholders is good news for the company, but the market misunderstands, and the immediate reaction in share price is positive. That can give an opportunity to a nimble share holder.
I once worked for a company that went through "restructuring" - in that case it was creditor protection. There was a very real threat that the place would shut down, which would be devastating for the community, so everyone in the area was very concerned. The share price drifted down to $0.01 as they played the brinksmanship games in the negotiations. Finally a deal was announced that saw the company continue to operate under new ownership, but the existing shareholders would get nothing. The community breathed a huge sigh of relief, and the shares immediately went to $0.25! A 25 bagger on news that they were absolutely certain to be worthless! Markets can be stupid.
Of course that quickly reversed, but anyone hanging on hoping against hope for a sunny outcome had a brief opportunity to salvage something.
Not saying that is going to repeat here - there aren't as many uninformed eyes on this story, and good information is more widely available these days - but it's something to watch for.