Well as usual, seems the shareholders are the last to know..obviously someone was aware of the delisting notice given the stocks trading history since the 5th.
I truly believe had Cityscapes management stepped in early and kept shareholders better informed perhaps some of this stock's selling panic could have been eliminated. I think the big catalyst was the influx of all these class action suits though which started the big sell off panic, causing more ratings downgrades, amplifying the preferred issues ramifications, pushing the price lower, making delisting a real possibility, making these preferred shareholder's liquidation rights a critical issue....etc,
and yes, Zeev - the Preferred Issues have indeed played a big role in all this.
Anyway, at this price selling my meager 500 shares is hardly worth the commissions so I'll see it through to the end. Besides, I can always frame the shares and place them over my computer as a reminder what to watch out for in the future - mainly..
1. Never buy a downward spiraling stock ! (Thought I knew this rule..well, at least I didn't "average down")
2. Cut loose any stock when management remains silent
3. Don't underestimate possible shareholder dillution effects
4. Know the preferred shareholder rights
5. Cut your losses early (well, At least I did cut most of them)
6. and never ever underestimate the greed of lawyers...I guess Chapter 11 makes a lawsuit much less enticing though...
This situation kinda reminds me of a seaward vessel with the lifeboat strangely missing and a small message taped to the ship's wheel:
Dear Guest,
This ship is sinking.....good luck !
Regards,
The Captain |
