Buying Stock After a Bankruptcy

[asterion]

Okay, now that United has filed chapter 11, will there ever be a good time to buy some stock in that company? I saw a warning somewhere else that they would probably pull all the old common stock and then issue new common stock, so I don’t want to go stock-buying until the new stuff has been issued.

On second thought, maybe I should just buy a couple more shares of Southwest.

[zwede]

You can make money on chapter 11 stocks… Of course there is a risk, but I would say it’s less than a dot bomb stock.

I bought some shares in worldcom after their chapter 11. Paid 6 cents a share. They’ve made it to 30 cents since.

/Markus