Now here is a situation that every investor in penny stocks or low single digits stocks will experience at some point in time. What if you buy shares in a company thats not in bankruptcy when you buy the shares. But the company ends up filing chapter 11 bankruptcy shortly after you buy the shares. In almost every case your best bet is to try and sell your shares into any kind of nice rally. Even shares in a company in bankruptcy can have big moves in the price of their shares. Take advantage of any big rally to unload your shares. Never attempt to ride out the bankruptcy and hope that their will be something leftover for you when the company finally emerges from bankruptcy usually theirs little or nothing leftover for the common stockholders at the end of the bankruptcy process. If you purchased your shares for say 1 dollar and they decline to 5 cents after the company anounces that they are filing for bankruptcy. Just watch the stock and see if theirs a nice rally if theirs a rally in the shares to say fifty cents take advantage of that rally to bail out of the stock. That way you have at least recovered 50% of your original investment in the shares. Do not think its a lost cause some companies can be in chapter 11 bankruptcy for many years. Their may be plenty of time for that rally to come any positive news about the company can cause the shares to rally even if the company is in chapter 11 bankruptcy. Sometimes the shares may not rally sometimes the company may suspend trading of their shares while their in bankruptcy. Sometimes theirs just no market for the stock. In that case it really does not make a whole lot of difference because your shares ae most likely worth very little anyway. You might want to just wait and see if their will be any new shares issued to you once the bankruptcy process is complete.
Some Excellent Penny Stock Investing Resources
Penny Stock Investing Newsletter
Manhattan Calumet Value Stock Hotline
Red Chip Companies