My portfolio got hit with a triple whammy today. First, it was -1.68% and even Harry Winston disappointed. Then, my BAC-to-$16-nightmare became reality and then some. I know I'm still technically benefitting from this since I've still got two other lots of BAC, but it somehow still feels like I've lost money from my recent sale of BAC. (Yes, that's how big my trading ego is). To top it off, ABK took the courtesy to warn everyone that it may file for bankruptcy.
In my experience, it will usually take several months before anything concrete occurs, but my hope is that the bandaid ripping will occur much sooner. This could be a special case with all the financial regulators involved. Nonetheless, it's financial hypocrisy at its best. How can ABK announce a $2.2 billion profit one week and then cry wolf the next?
Looking back on previous companies that have filed for bankruptcy...
1. Metaldyne did a tender offer before it finally succumbed to bandaid ripping.
2. Finlay tried buying time with a debt exchange offer with its vendors several months prior to ROTB (ripping off the bandaid).
Is ABK rolling over and playing dead?
I had a feeling it was only a matter of time, but I'd like to know what's happening to that $2.2 billion profit? Bonus time!
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