I know that there are some of you who happens to own Enron stock, which suffered one of the most precipitous drops in the history of American stocks. Enron just filed for bankruptcy, and is suing Synergy for not buying them out when promised. This thread is for you to cry out (and those on the sidelines, don’t laugh).
I believe it’s Dynegy they’re suing.
Yes, they closed at 0.26/share on Friday after having been at $87 earlier this year.
I’m in Houston, and believe me, this is big news here. I’ll be absolutely mystified if no jail time comes out of this. They were transferring losses to shell companies owned by their executives, so their profits appeared much better.
Besides the many shareholders who bought them in the market, their employees held many shares in their 401Ks. So people who had fifteen or so years there now suddenly have 401Ks worth $1000 (as an example – I don’t have a particular person in mind).
I wouldn’t call it a “drop” in stock value so much as a result of direct fraud in terms of intentionally misstated earnings. I’m hoping to see Mr. Lay et al trade their pinstripes for prison stripes. Because of their conduct they should have absolutely no protection via bankruptcy laws. This sort of manipulation positively reeks! However much risk might be inherent in stock purchases, losses due to criminal fraud are another thing entirely and deserve legal redress.
Should also be a warning to not hold onto your own companies stock or options longer than you have to. If your company goes down in flames, not only are you out of a job, but your portfolio/retirement is shredded. This should be a wake up call to those of you out there holding company stock.
The lawsuit should be interesting. “Hey, no fair not buying us out when you found out that we had been deliberately misrepresenting ourselves to you.”
This is quite a phenomenon to watch. Up to 0.42 as of now, from 0.26 this morning, on a volume of 123 million shares!
The Yahoo message board is rolling over about every five minutes. 4,000 job cuts announced today as well, and Dynegy is suing them right back.
Agh!
This is a embarrassment to great city, please lets get a new name for the baseball stadium.
So, I figure that I am actually helping the (now or former) employees by driving the stock up. Buy, buy, buy.
I’ve got a buy order in at $0.65 for the morning. We’ll see where that goes.