NRV Stock Rise

[Weizzer]

I don't know how many of you have noticed but National's stock has gone from 6 cents a share to 28 cents a share in about a week. Not bad for a company that's out of business.

[Weizzer]

I don't know how many of you have noticed but National's stock has gone from 6 cents a share to 28 cents a share in about a week. Not bad for a company that's out of business.

[06 Tradewinds]

I don't get it. Everyone needs to understand that even if National should come out of Chapter 11 bankruptcy (which I would be very happy to see happen obviously), in most cases, all companies issue a new ticker symbol for their "new stock" and the old stock is worthless? There is a good explanation of the SEC rules related to bankruptcy at the following website. www.sec.gov/investor/pubs/bankrupt.htm This is good reading and explains the rules very well.

Here is a clip form the SEC website related to bankruptcy stock.

"If the company does come out of bankruptcy, there may be two different types of common stock, with different ticker symbols, trading for the same company. One is the old common stock (the stock that was on the market when the company went into bankruptcy), and the second is the new common stock that the company issued as part of its reorganization plan. If the old common stock is traded on the OTCBB or on the Pink Sheets, it will have a five-letter ticker symbol that ends in "Q," indicating that the stock was involved with bankruptcy proceedings. The ticker symbol for the new common stock will not end in "Q". Sometimes the new stock may not have been issued by the company, although it has been authorized. In that situation, the stock is said to be trading "when issued," which is shorthand for "when, as, and if issued." The ticker symbol of stock that is trading "when issued" will end with a "V". Once the company actually issues the newly authorized stock, the "V" will no longer appear at the end of the ticker symbol. Be sure you know which shares you are purchasing, because the old shares that were issued before the company filed for bankruptcy may be worthless if the company has emerged from bankruptcy and has issued new common stock."

[Weizzer]

National RV stock is now 32 cents.

[Weizzer]

National RV stock is now 36 and a half cents.

[Jestme13]

Come on baby, PaPa needs a new pair of shoes

[Weizzer]

As I write this National RV stock is now at 48 cents a share.

[RustyJC]

The market terminology for this phenomenon is a "dead cat bounce"!

Rusty

[gizmo]

http://biditup.com/auctions.php?aid=148

national auction site

[Weizzer]

NRV stock is now at 60 cents.

[Weizzer]

A profit taking sell off dropped the stock to 48 cents which is still higher than it was a couple of days ago.

[Jestme13]

Please explain "dead cat bounce"

[06 Tradewinds]

Wikipedia Definition to Dead Cat Bounce:

A dead cat bounce is a term used by traders in the finance industry to describe a pattern wherein a moderate rise in the price of a stock follows a spectacular fall, with the connotation that the rise does not indicate improving circumstances. It is derived from the notion that "even a dead cat will bounce if it falls from a great height".

The phrase has been used on the trading floors for many years. However the earliest recorded use of the phrase dates from 1985 when the Singaporean and Malaysian stock markets bounced back after a hard fall during the recession of that year. The Financial Times reported a stock broker as saying the market rise was a "dead cat bounce".

The reasons for such a bounce can be technical - investors may have standing orders to buy shorted stocks if they fall below a certain level, to cover certain option positions, or for speculation. Since bounces often occur, investors buy into what they hope is the bottom of the market, expecting a bounce and thus make a quick profit. The very act of anticipating a bounce can create and magnify it.

A market rise after a sharp fall can only really be seen to be a "dead cat bounce" with the benefit of hindsight. If the stocks starts to fall again in the following days and weeks, then it is a true dead cat bounce. If the market picks up starts to climb again, it was not a bounce but a bottom.

The phrase has also been used in politics in reference to primary election poll figures for United States presidential elections.

[RustyJC]

In this sense, "dead cat bounce" describes a recovery in stock price after a precipitous fall when there are no fundamentals to justify such a recovery. As Larry said, the bounce when the dead cat hits the ground is mistaken for signs of life.

Down here in the Houston area, we saw the same thing during the death throes of Enron. Indviduals bought stock for pennies per share on the long odds that the stockholders were going to wind up with something or that Enron would somehow rise from the ashes.

Rusty