OK - newbie that is still hoping here! What happens if the stock goes to $0 or the co goes BK - If a shareholder hangs on (perhaps for 30 years or so) is there ANY hope of recouping losses or are all of the shares worth $0 for eternity? Likely a really dumb question but trust me - I was REALLY hoping that I would not have to post this question and look so dumb!:eek:
I don't know the answer but all i can say is that this may have been the worst financial decision i have ever made. This is a bunch of BS. I will have to decide whether to weather the storm or lose my ass.
Shareholders are last in line behind the others creditors in the event of a BK. If the company declares BK then it is likely the shares would be cancelled and the equity in the company would go to someone higher up on the list of creditors. Under this situation (and only this situation) the shares could eventually go to zero.
If, and this is my opinion of what will happpen, there will be further dilution of the shares, e.g. they sell more shares at this low price or they issue a convert at this low price, then you will continue to have your shares but they will represent a smaller percentage of the company. The shares may eventually go up in value.
Thanks Bunches for the info James! Sounds like the bread line for alot of us?!
Jworld - I too am in alot further than i should be! Lets all cross our fingers and hope - pray - whatever works that this Mel guy can turn lemons into lemonade!!
When a company BK's and cancels shares it's over. The company, if able to reorganize, would most likely issue new shares with a different ticker symbol that would have no relation to the previous shares.
People on these boards and elsewhere keep saying that BK is unlikely and I hope that was the truth however this is a very real possibility.
I do agree with the previous poster in regards to the R/S more than likely happening. I personally think that this will just delay the inevitable at this point. I'm long 10,000+ shares with a much higher cost basis (+$2.25/sh) and don't want to see my money wasted but the facts are what they are and they are showing the stock worth zero.
Why would you think we are going bankrupt.. :out:nothing has changed from q3 last week it was very + .. the nasdaq is hitting new lows everyday so all stocks go lower.. and sirius is trading with gm/f and thats wht we took the dump from .25 to .17 this week.. this is not a trade, I post great trades every day here !! :thumbup:
this is a 2 year investment, I wouldnt put more money in and I wouldnt take any out..its a hold.:thumbup:
Apex - I for one REALLY appreciate your positive posts and i too am in for the long haul - it would be bringing on my own "financial" suicide to cash out now. I agree that the entire market is falling and siri is following but it seems to me that perhaps siri is in more dire straights (refi needed, rs possible, share dilut likely) and less able to tread water than other stocks?? Your comments and the other folks on this board are VERY welcome and I thank everyone for their insite and educating!!
You are totally correct. It is bad if you are at sea and a storm hits you. It is worst if you are already making water.
Originally Posted by RickF
What is your opinion on December selling? Seems to me that there would be a lot of selling for tax purposes.
While BK is possible I still feel it is not likely. If it is January and we still haven't resolved the February debt than I would be more worried about it. More likely we are facing dilution.
While I am hoping that we can find the 210 million dollars without dilution, it might not hurt us as bad as you think. Even if we had to issue another two billion shares to cover the payment (and we renegotiated the bank debt due later in the year) the share price might pop because it would eliminate the immediate fear of BK. I think the fear of BK is the reason for the current price.