I came across VLNC the other day on a stock scan and noticed the stock lost over 90% in one day due to the company filing Chapter 11 Bankruptcy. Curiousity got the best of me, so I started looking at some other stocks of the recent past that also filed Chapter 11. Below are the first 4 stocks I've taken a look at and a chart around the time of the filing
FUELQ: Filed 4/16/2012
http://stockcharts.com/h-sc/ui?s=FUELQ&p=D&st=2012-04-02&en=2012-06-01&id=p57449903749 EKDKQ: filed 1/18/2012
http://stockcharts.com/h-sc/ui?s=EKDKQ&p=D&st=2012-01-02&en=2012-03-01&id=p20862651495 AAMRQ: filed 11/29/2011
http://stockcharts.com/h-sc/ui?s=AAMRQ&p=D&st=2011-12-01&en=2012-02-01&id=p17122430768DYNIQ: Filed 7/6/2012
http://stockcharts.com/h-sc/ui?s=DYNIQ&p=D&st=2012-07-02&en=(today)&id=p16770336422Although this is just the beginning of my investigation, I did notice some similar patterns
1. Of course they all had major drops following the announcement, with the fall lasting up to 3 days before it rebounds.
2. The rebound can be substantial, as in the case of FUELQ and AAMRQ (around 50-60% in one day)
3. Within 15 trading days the stock seems to trade to at least 50% of its pre chapter 11 price.
My hope is to gather information on about 100 - 200 Chapter 11 Stocks and try to figure out if there are any markers that could be used to determine the risk/reward ratio and then post the results. I'm not sure if there is an easy way to find these stocks (googling "Chapter 11 Stocks for instance) or trying a search on stocks ending in "Q". I am also asking for a little help from the community on this project, as researching all the variables (A/S vs OS, Float, Assets/Debt,Volume, etc) will be quite time consuming. So if you have any ideas, thoughts, recommended data points to track or can research some variables, it would really be appreciated.
Thanks
PS... Today is VLNCQ's third trading day after filing - May throw some that way and see how it plays.