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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA -- Ignore unavailable to you. Want to Upgrade?

To: nsumir81 who wrote (13527)	7/19/2002 3:00:54 AM
From: J.T.	Read Replies (2) \| Respond to of 19219

Speaking of BK and corporate Lazarus raising from the dead... Ever hear of a company called Interstate Stores that went BK? hmmm... They resurrected from the dead and changed their name to one Toys R' Us...and within 6 years was back above its all time highs... Those that bought at pennies on the dollar had the opportunity to sell above $30 smacks but comfortably could've sold in the 20's within 6 years. Ever hear of Penn Central? Equity Funding or Daylin? Might want to do some homework... hmmm... For many of these companies bankruptcy is the only alternative to resurrect value to shareholders over the long term. BK is a cleansing process. It erases a lot of the problems of excess. Operations get streamlined, losing divisions spun off or closed, new management emerges.... All done on public record. By the time a company comes out of Chapter 11, you know it is going to be free of encumbrances, on or off the balance sheet. It becomes more liquid, more honest, realistic management and the price is right pennies on the dollar selling at a new comfortable discount... Oh yeah... and all those tax loss carry forwards to offset future taxable income... The ones that bought WCOM today at 10 cents before the BK Sunday.... They are in it for the long term... and will get a minimum 5 bagger return on investment tied up Buffet style long term thinking like an investment in the old limited partnerships... no liquidity early on... but huge payoff for those willing to wait like locking up a 5 year CD no collect until maturity. Smart money is always taking the other side of the trade. Ask yourself why by thinking outside the box. Best Regards, J.T.