I lost over 2 years savings on flagtelecom, I got the shares for my kid and I rode it all the way down to 0.0. Every sign was great and the CEO said it was going great, and that they would hit profit early even. Even when the CEO said they was filing BK, he made it sound like it would help our stock, most of us done the research, indeed flagtelecom was not in need of going BK at all.
And indeed it would of but then people looked at the BK plan, stock holders got nothing and they claimed the fiber was worthless. Yes they claim that fiber optics from SEA to shining SEA, was worthless and the judge went along with that. I guess the fiber optics comcast have are worthless as well, and the ones verizon have across the USA are as well.
Seeing how flagtelecoms was from sea to shining sea, and the only such one how could a judge agree they was worthless. They was the only connection many country's had, to other country's with contracts with flagtelecom. Our lawyer told them if it was worthless, then why don't they give us a few shares of the new one. Flagtelecoms answer that by saying, well if they feel that way they can buy some of the new stock.
The judge did not even look at the stuff, and order the trusty look at it and the trusty was from the bank. That setup the fake BK and was to be part owner, our lawyer pointed out to the judge they had the funds, to pay the bills until they hit profit a few months later.
It was easy to see what they don't, they loans billions and got billion on stock shares. Went and builded the fiber lines, then a few months before they was done setup deals. To stop payment to the bank, and the bank had most of their money bank already, took a big chunk of the new teleco. Funny how flagtelecom was in with tyco fibers, they even investest some in flagtelecom. And was going to do more, then all of a sudden tyco had big problems.
When you start looking at all the teleco's the went BK, you soon see a partern with them. And the banks are the same few, and the same kind of scams going on. And the same few banks, was also doing shady BK with other big biz. Claiming they was worthless, when in fact they was worth lots of money. The stock was worthless and stock holder lost everything, everyone else come out great CEO getting millions in bonus.
And the only reason the bush admin went after them, was because the gov't lost a big chunch of the retirement savings. The bush admin was to busy making their big oil bubby's richer. And having to much fun playing war games, and playing world wide terrorist witch hunts. And making the war games into holy war games, it worked wonderfully for the bush admin. And that is how we are where we are, and the rich got much richer, and the middle class is going away very fast.
Really you shouldn't even enter the trade unless you can cover the risk...this is essentially what Stearns did on a huge scale eh? As far as a target goes (where to cover) you can let the market take you out thru the use of trailing stops.
