Tuesday, August 16, 2011

Evergreen Solar ($ESLR) Update on Restructuring Plan

Contains this gem:

"The Company’s shareholders are cautioned that trading in shares of the Company’s common stock during the pendency of the Bankruptcy Case will be highly speculative and will pose substantial risks. The Company expects that the currently outstanding shares of its common stock will be cancelled and extinguished upon confirmation of a restructuring plan by the bankruptcy court. In such an event, the Company’s shareholders will not be entitled to receive or retain any cash, securities or other property on account of their cancelled shares of common stock. As a result, the Company expects that its currently outstanding common stock has no value. Trading prices for the Company’s common stock may bear little or no relationship to the actual recovery, if any, by holders thereof in the Company’s Bankruptcy Case. Accordingly, the Company urges extreme caution with respect to existing and future investments in its common stock."
Well put: the common stock price "may bear little or no relationship to the actual recovery." Just as I discussed in the post about "Who Trades the Stock of Bankrupt Firms?"

2 comments:

Eric said...

Yesterday's high was .18, low .11, .16 close. A nice return there if you can catch it at the right moment and have the guts to hammer the trade. Daytraders will be interested.

CP said...

That's definitely the retail strategy.