Hiding Bear Posted July 26, 2004 Author Report Share Posted July 26, 2004 Many months ago I mentioned Air Canada TSE:AC was a screaming short at around 1.50. AC has been in CCAA {Chapter 11} for over a year and has told all "investors" and holders of the common they would get nothing upon reemergence from bankruptcy. Recently the last contract of 9 unions was signed and it now looks as though the restructuring is done. Months ago Victor Li {Trinity time investments} was sent scurrying back to Hong Kong when the unions basically told him the defined benefit pension plans were non negotiable. As no other bailout artist was willing to take Li's place ACs largest debtor Deutche Bank stepped up to the plate and saved the day. Usury was at stake and the loan write off would of been enormous. Air Canada was nothing more then an Argentina with wings. Last week shareholders were informed they would get a fraction of a cent on the dollar for shares held and only if tens of thousands were owned. Immediately AC dumped going from 1.20 to .35 cents Cdn. It has since bounced to .68 cents. With the shares going to zero in the next few months I will not be clearing just yet. Better yet I am under the impression that the trade will not be covered as how can you buy back worthless stock. Nice taxation implications! If Im wrong on this or anyone out there has experience shorting bankrupt companies could you post or pm me. Generally in the US, the date the bankruptcy judge declares the shares worthless is the date used for tax purposes to reflect a sale or buy at zero - depending on whether long or short. It is probably better to actually buy or sell shares in the market to realize a gain or loss for technical reasons to long to mention here - but it is not necessary under the rule above. If there are distributions from lawsuits which may not finish until some time later, and adjustment to the previously reported gain or loss must be made for those distributions. This would also apply to US citizens trading Canadian companies, but I don't know much about how Candaians report gains or losses. Link to comment Share on other sites More sharing options...
Lock Limit Down Posted July 26, 2004 Report Share Posted July 26, 2004 Thanks much HB Going to have to research Revenue Canadas take on the above Link to comment Share on other sites More sharing options...
Guest Posted July 26, 2004 Report Share Posted July 26, 2004 HSY http://139.142.147.221/StockChart_ImageOnl...=INX&ref_rate=0 Link to comment Share on other sites More sharing options...
Butterfield 8 Posted July 26, 2004 Report Share Posted July 26, 2004 ssri has been the strongest silver stock this year - not aware of its fundamentals, however. SIL , the oldest, has a ton of physical above ground., which they are not selling at these prices. Long-term I would buy it over ssri Link to comment Share on other sites More sharing options...
brian4 Posted July 26, 2004 Report Share Posted July 26, 2004 Trannies and RUT setting new lows! Link to comment Share on other sites More sharing options...
Lock Limit Down Posted July 26, 2004 Report Share Posted July 26, 2004 With gold options expiring today Im expecting a bounce near term Lots of call holders whacked in the last week. Link to comment Share on other sites More sharing options...
BumRush Posted July 26, 2004 Report Share Posted July 26, 2004 Time out for Crapvision Special Announcement: Just in time for average guy investor Worried about picking just the right stock? Well, you too can join an elite few, invest in a hedge fund --- $10,000 gets you in (Not kiddin just on.... maybe they'll teach me the magic handshake....) Link to comment Share on other sites More sharing options...
Lock Limit Down Posted July 26, 2004 Report Share Posted July 26, 2004 990n in the house Big bid coming into the minis Link to comment Share on other sites More sharing options...
The End Posted July 26, 2004 Report Share Posted July 26, 2004 If we did low out on a ST basis, Zoran missed the low by 1.08 points on the DOW. Not bad. (if we lowed out) Link to comment Share on other sites More sharing options...
Lock Limit Down Posted July 26, 2004 Report Share Posted July 26, 2004 NO MANIPULATION HERE We knew it was coming Link to comment Share on other sites More sharing options...
The End Posted July 26, 2004 Report Share Posted July 26, 2004 The 36 hour cycle (Curry) is 36 hours along. Be carefull. Link to comment Share on other sites More sharing options...
The End Posted July 26, 2004 Report Share Posted July 26, 2004 The MACD histogram is showing bullish divergence. Please not also the previous time it did not work. Link to comment Share on other sites More sharing options...
Lock Limit Down Posted July 26, 2004 Report Share Posted July 26, 2004 OUT Dont like this Link to comment Share on other sites More sharing options...
DrStool Posted July 26, 2004 Report Share Posted July 26, 2004 End- Is that trading hours, regular hours, or clock hours? Link to comment Share on other sites More sharing options...
DrStool Posted July 26, 2004 Report Share Posted July 26, 2004 I'm curious as to which cycle it correlates with that I watch. Link to comment Share on other sites More sharing options...
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