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Nov 6, 2010
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A long story in the Atlantic, titled "The Looming Bank Collapse". I'm not a financial guy, but this didn't read well. Would like your guys' opinion on this. Could this lead to bank runs, maybe another Penn Square Bank.

https://www.theatlantic.com/magazin...nks-collapse/612247/?utm_source=pocket-newtab
The article sounds entirely plausible to me, and scary. I don't think there is any way to keep these scammers from continuing this behavior. The banks will have teams of lobbyists at the ready so any regulation enacted they'll immediately start working on repealing it before the ink is dry. The only safeguard IMO is the thing we failed to do last time, which was to break up the big banks. We shouldn't have any "too big to fail" banks anymore, but alas, we still have them.
 
Sep 6, 2012
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Edmond
feeling pretty good about getting off of Boeing with I did at almost its peak of recent. My FA suggested putting money in convertible bonds. We took the 30 k from boeing and bought some , not all convertible bonds.
 

jobob85

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Mar 11, 2009
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feeling pretty good about getting off of Boeing with I did at almost its peak of recent. My FA suggested putting money in convertible bonds. We took the 30 k from boeing and bought some , not all convertible bonds.
I kept all my positions but, wrote covered calls on them Monday. Made $10K on a $100k trading account by giving someone the option to buy my stock in 38 days at 15% higher than what it was trading for.
 

steross

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Mar 31, 2004
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Nah, this won‘t end badly......
Hertz Wins Approval to Offer Potentially Worthless Stock
By Steven Church , Jeremy Hill , and David Welch
12 de junio de 2020

Judge says share sale cheaper than traditional bankruptcy loan
Creditors support offering to take advantage of price spike

Hertz Global Holdings Inc. can go ahead with its plan to raise cash by selling new shares that the bankrupt car-rental company readily concedes could end up worthless.

Judge Mary Walrath ruled during a bankruptcy court hearing Friday that Hertz can proceed with the offering, which the company has said could bring in as much as $1 billion. It’s seeking to take advantage of the recent improbable rally in its shares, which could help Hertz resolve the massive debts that forced it into bankruptcy.

https://www.bloomberg.com/news/arti...DGVkCgHyte7fWHYwk_5eksYcyyb4_4SsT6JZ8gh--tQuc
 

RxCowboy

Has no Rx for his orange obsession.
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Nov 8, 2004
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Nah, this won‘t end badly......
Hertz Wins Approval to Offer Potentially Worthless Stock
By Steven Church , Jeremy Hill , and David Welch
12 de junio de 2020

Judge says share sale cheaper than traditional bankruptcy loan
Creditors support offering to take advantage of price spike

Hertz Global Holdings Inc. can go ahead with its plan to raise cash by selling new shares that the bankrupt car-rental company readily concedes could end up worthless.

Judge Mary Walrath ruled during a bankruptcy court hearing Friday that Hertz can proceed with the offering, which the company has said could bring in as much as $1 billion. It’s seeking to take advantage of the recent improbable rally in its shares, which could help Hertz resolve the massive debts that forced it into bankruptcy.

https://www.bloomberg.com/news/arti...DGVkCgHyte7fWHYwk_5eksYcyyb4_4SsT6JZ8gh--tQuc
Can I pay off my now ex-wife in Hertz stock?
 
Sep 29, 2011
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Nah, this won‘t end badly......
Hertz Wins Approval to Offer Potentially Worthless Stock
By Steven Church , Jeremy Hill , and David Welch
12 de junio de 2020

Judge says share sale cheaper than traditional bankruptcy loan
Creditors support offering to take advantage of price spike

Hertz Global Holdings Inc. can go ahead with its plan to raise cash by selling new shares that the bankrupt car-rental company readily concedes could end up worthless.

Judge Mary Walrath ruled during a bankruptcy court hearing Friday that Hertz can proceed with the offering, which the company has said could bring in as much as $1 billion. It’s seeking to take advantage of the recent improbable rally in its shares, which could help Hertz resolve the massive debts that forced it into bankruptcy.

https://www.bloomberg.com/news/arti...DGVkCgHyte7fWHYwk_5eksYcyyb4_4SsT6JZ8gh--tQuc
So the owners of the company contribute money to help the company pay off its creditors thereby avoiding putting another creditor in line ahead of them in bankruptcy priority. Nothing to frown at here.


Sent from my iPhone using Tapatalk
 

steross

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Mar 31, 2004
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So the owners of the company contribute money to help the company pay off its creditors thereby avoiding putting another creditor in line ahead of them in bankruptcy priority. Nothing to frown at here.


Sent from my iPhone using Tapatalk
No.

They are offering new stock so not the owners of the company until they purchase stock which will soon probably have no value. Sure, current stock owners could purchase even more shares but sending more money to lose to hold your place in line to possibly get some percentage of it back is sheer idiocy.
 

jobob85

Alcoholistic Sage
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Mar 11, 2009
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No.

They are offering new stock so not the owners of the company until they purchase stock which will soon probably have no value. Sure, current stock owners could purchase even more shares but sending more money to lose to hold your place in line to possibly get some percentage of it back is sheer idiocy.
There really isn’t a line for the shareholders. They pretty much are last and will likely receive nothing in bankruptcy.
 
Sep 29, 2011
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So the owners of the company contribute money to help the company pay off its creditors thereby avoiding putting another creditor in line ahead of them in bankruptcy priority. Nothing to frown at here.


Sent from my iPhone using Tapatalk
No.

They are offering new stock so not the owners of the company until they purchase stock which will soon probably have no value. Sure, current stock owners could purchase even more shares but sending more money to lose to hold your place in line to possibly get some percentage of it back is sheer idiocy.
Uh, anyone that buys/owns stock is an owner. Did you miss that day business class?

BTW, anyone buying the new issue is clearly aware of the situation (or should be unless they blindly invest) and is taking that risk with full disclosure.

Despite the dilution to existing shareholders, it’s likely a better deal for them than just securing a high interest rate loan.

Maybe you’ve been burned in the past by investing before you look?


Sent from my iPhone using Tapatalk
 

steross

Bookface/Instagran legend
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Mar 31, 2004
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Uh, anyone that buys/owns stock is an owner. Did you miss that day business class?

BTW, anyone buying the new issue is clearly aware of the situation (or should be unless they blindly invest) and is taking that risk with full disclosure.

Despite the dilution to existing shareholders, it’s likely a better deal for them than just securing a high interest rate loan.

Maybe you’ve been burned in the past by investing before you look?


Sent from my iPhone using Tapatalk
I'm absolutely amazed you were able to pass any class with the lack of reading comprehension that you just displayed. In fact, the more you speak the more I doubt any of the story you are trying to pass on these boards.

But, I do give you kudos for trashing this thread I started. Your persistent condescending arrogance has pretty much run off anyone that actually wanted to discuss stocks and investment, including myself. So, all that is left is whining about or cheering for Trump, like virtually every boring thread here. Congrats on that achievement.
 

jobob85

Alcoholistic Sage
A/V Subscriber
Mar 11, 2009
22,658
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Uh, anyone that buys/owns stock is an owner. Did you miss that day business class?

BTW, anyone buying the new issue is clearly aware of the situation (or should be unless they blindly invest) and is taking that risk with full disclosure.

Despite the dilution to existing shareholders, it’s likely a better deal for them than just securing a high interest rate loan.

Maybe you’ve been burned in the past by investing before you look?


Sent from my iPhone using Tapatalk
Interesting you think it may be better than a loan. I didn’t look at outstanding shares to make that assessment. Usually a stock offering is there because a loan is unavailable. The potential in a stock price recovery has more benefit to the current shareholders.
 
Nov 6, 2010
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feeling pretty good about getting off of Boeing with I did at almost its peak of recent. My FA suggested putting money in convertible bonds. We took the 30 k from boeing and bought some , not all convertible bonds.
Care to share a little more on your thoughts about Boeing? I know it's a bit of a longer play, but I just don't see it being a bad hold right now.
 
Sep 6, 2012
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Edmond
Care to share a little more on your thoughts about Boeing? I know it's a bit of a longer play, but I just don't see it being a bad hold right now.
Well I had some old stuff and bought more prior to the computer issue in the 737. So

My feeling on boeing is that it will be back to its highs in years. I believe that once its cleared by the faa it will be a very active stock with trades. Most long term investors are holding it. I would have too but I got close to averaged price and got out. I'm sure that others will chime in. I am just not confident it will bounce back fast
 
Sep 29, 2011
1,513
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Breckenridge, CO
Uh, anyone that buys/owns stock is an owner. Did you miss that day business class?

BTW, anyone buying the new issue is clearly aware of the situation (or should be unless they blindly invest) and is taking that risk with full disclosure.

Despite the dilution to existing shareholders, it’s likely a better deal for them than just securing a high interest rate loan.

Maybe you’ve been burned in the past by investing before you look?


Sent from my iPhone using Tapatalk
I'm absolutely amazed you were able to pass any class with the lack of reading comprehension that you just displayed. In fact, the more you speak the more I doubt any of the story you are trying to pass on these boards.

But, I do give you kudos for trashing this thread I started. Your persistent condescending arrogance has pretty much run off anyone that actually wanted to discuss stocks and investment, including myself. So, all that is left is whining about or cheering for Trump, like virtually every boring thread here. Congrats on that achievement.
You post negative comments about Hertz’ plan. I respond with a very benign comment that Hertz plan is nothing to frown about. You then get snarky. I respond in kind.

It appears you are the one that doesn’t want his opinion questioned.

Really nice try at moderating the thread you started.

BTW, how many corporate stock offerings, bond offerings or debt deals have you been associated with?


Sent from my iPhone using Tapatalk
 

steross

Bookface/Instagran legend
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Mar 31, 2004
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You post negative comments about Hertz’ plan. I respond with a very benign comment that Hertz plan is nothing to frown about. You then get snarky. I respond in kind.

It appears you are the one that doesn’t want his opinion questioned.

Really nice try at moderating the thread you started.

BTW, how many corporate stock offerings, bond offerings or debt deals have you been associated with?


Sent from my iPhone using Tapatalk
I said this would end badly. I wasn’t talking about Hertz. Hertz is brilliant if they can pull this off. It is a creative use of the current socialized market atmosphere with the government or Fed backstopping nearly everything. I was talking about people buying virtually worthless stock in the frenzy of stock purchasing that is occurring right now. Somehow, you went from calling anyone that purchased stock on any method other than valuing the company and management a gambler to defending buying stock of a bankrupt company that is exceedingly likely to have no value at all based on the historical value of common shares in bankruptcy. You are far more congruent in always responding to attempt to disagree with me in any way possible than you are with your own ideas.

The first snark was “Uh” from you. There was nothing like that in my post. I simply disagreed with your thesis that these newLy marketed shares would only be taken up by current owners in a theoretical attempt to stem losses.
 

RxCowboy

Has no Rx for his orange obsession.
A/V Subscriber
Nov 8, 2004
76,082
52,636
1,743
Wishing I was in Stillwater
I said this would end badly. I wasn’t talking about Hertz. Hertz is brilliant if they can pull this off. It is a creative use of the current socialized market atmosphere with the government or Fed backstopping nearly everything. I was talking about people buying virtually worthless stock in the frenzy of stock purchasing that is occurring right now. Somehow, you went from calling anyone that purchased stock on any method other than valuing the company and management a gambler to defending buying stock of a bankrupt company that is exceedingly likely to have no value at all based on the historical value of common shares in bankruptcy. You are far more congruent in always responding to attempt to disagree with me in any way possible than you are with your own ideas.

The first snark was “Uh” from you. There was nothing like that in my post. I simply disagreed with your thesis that these newLy marketed shares would only be taken up by current owners in a theoretical attempt to stem losses.
near fall 4 points.jpg