Another Question for Dagger

[Guest GDR]

This morning AC shares are trading at around 80 cents. What value do you see the shares having? Somebody must think they have an upside.

Thanks

Greg

[Guest AME]

Air Canada shares now have zero value, Joe D'Cruz, a professor at the University of Toronto's Rotman School of Management, said in an interview with CBC Radio's The Business Network.

"The investors in shares of Air Canada have lost everything," D'Cruz said.





http://www.cbc.ca/stories/2003/04/02/aircanstock_030402

[Guest WA777]

As is usually the case, during the restructuring the shares most likely will be cancelled...(i.e.worthless). You can read into that what you want.....

[Guest WA777]

As is usually the case, when companies restructure the shares most likely will be cancelled (i.e.worthless). New shares will be issued to the creditors. You can read into that what you want.....

[Guest GDR]

I read that too, but the shares are trading at 80 cents, so somebody thinks they have an upside.

[Kip Powick]

Actually up to 0.85 at 10:15EST

[Guest Greener]

[dagger]

It's not unusual for stocks of companies fresh into CCAA to trade for a while on a speculative basis, but my rule of thumb is avoid bankrupt companies. Around 1992, CO was in its second bankruptcy and the stock made a miraculous comeback from 65 cents to $2.50. A day later, the company said there was no reason for the rise, that it intended to cancel all shares as part of its reorganization. The stock fell back to pennies.

Caveat emptor.

[Guest GDR]

Thanks Dagger

[Guest Propellerhead]

How about: short sales being covered.