MF Global Common Stockholders

[Andiroo]

Hi All

Does anyone know what the status of the common stockholders of MF Global stock ticker (MFGLQ) are right now?

It trades OTC pink sheets and I presume at some point they might have some residual value after all the bondholders and other creditors are paid out. Is there any info on what this could be?

Thanks

Arb

 

[Swan Noir]

Generally in circumstances that are as screwed up as this the common has zero equity. Frequently the senoir equity holders take a hit as well but frequently get some payout.

 

[Andiroo]

I know this is the usual scenario in a bankruptcy case but here a lot of money is being recovered and I have read that some of the residual investments are said to be appreciating significantly.

Not suggesting a trade here but just interested in likely outcome.

Arb

 

[Swan Noir]

Likely outcome is that the bones are picked clean and there is little or nothing left for common holders. Could this one be different? Of course, but only those willing to dig deep and parse the balance sheet with diligence and real skill at such work can know.

Quote from Andiroo:

I know this is the usual scenario in a bankruptcy case but here a lot of money is being recovered and I have read that some of the residual investments are said to be appreciating significantly.

Not suggesting a trade here but just interested in likely outcome.

Arb

 

[Daal]

The vast majority of the time the equity loses everything. If you have to ask then clearly you don't know what you are doing and you shouldn't buy

 

[comintel]

Quote from Andiroo:

I know this is the usual scenario in a bankruptcy case but here a lot of money is being recovered and I have read that some of the residual investments are said to be appreciating significantly.

Not suggesting a trade here but just interested in likely outcome.

Arb

They only had enough money to barely cover the customer accounts and even that was doubtful until MFG Trustee Freeh gave up a little from the secured debt holders.

I do not even think that all of the debt will be paid off, so that would leave nothing for stockholders.

 

[Andiroo]

Quote from Daal:

The vast majority of the time the equity loses everything. If you have to ask then clearly you don't know what you are doing and you shouldn't buy

Like I said I was not suggesting a trade - quite the opposite. Read the original email. The question was more one of when you can take the loss!

 

[Swan Noir]

I just reread the original email. Sounds bullish to me. Sounds like you think there is value there and most of us (we are all guessing) believe the common has no equity.

Quote from Andiroo:

Like I said I was not suggesting a trade - quite the opposite. Read the original email. The question was more one of when you can take the loss!

 

[JesseJamesFinn]

Watch out that your Broker does not charge you a "Reorganization" fee, I got slapped with that when EPL went BK.

Etrade charged me $80 as a "Reorganization fee", how did they get away with screwing a customer like this? I never received any shares from the new EPL company, just a wicked fee from a over-priced broker.

How much will it cost you to sell this stock or write it off as a worthless security? You run the chances of getting hit with those fees because of the DTC, think about getting if off your books.