Need help. Can someone explain OTCBB and/or Pink Sheets Trading?

[MeneMeneTekelUpharsin]

Can someone explain something to me? Mesa Airlines (MESA) just filed for Chapter 11 Bankruptcy. Almost all other companies I've observed filing for Chapter 11 bankruptcy still have their stock trading on the OTCBB exchange or "Pink Sheets". The company reported that they do not expect the stock to be immediately available for OTCBB trading. What does this mean? Another story says a certain form (211 I think) must be filed by a market maker who might decide to pick up and trade the bankrupt company stock on an exchange. Is there a chance MESA stock will trade in the OTC market? Thanks.

[MeneMeneTekelUpharsin]

Just wondering if someone out there could give me details on possible scenarios for MESA stock. Can they completely shut down trading on a stock that trades several million shares a day (even in bankruptcy)?

[joinedafterattack]

Trust me, run from that stock and trade.

The way to make money in the market is to get rich slow.
- Buy a company with a strong history of earnings and sales growth
- Make sure it has substantial cash to debt
- Make sure it has a return on equity of at least 12%
- Make sure annual historic capital expense is not more than 1/3 of earnings per share
- Buy at a pe no more than the return on equity percent and no more than 18.

I just spent 4 weeks looking at 2400 stocks and 98 met this goal. I then bought a four of them.

Research, Research, Research, Research

[freespirited]

Pink sheet FAQ:

http://www.pinksheets.com/pink/otcguide/issuers_getquoted.jsp

I stay away from pinksheet stocks myself. My impression of the market is that it is even more crooked than the standard fare.

[HighWheeler]

You may need to forget this stock, it’s done. If the cost of selling it out was even $10, it would require 221 shares just to pay the broker to dump it.

[MeneMeneTekelUpharsin]

I realize it is going to end up having no value. My question is — Is it going to be allowed to trade in the OTCBB? Other bankrupt stocks have traded there such as Lehman, Smurfit-Stone, Calpine, Mirant, etc. Will this stock get to trade or will it just be abruptly cancelled?

[groanup]

Sounds like you want to sell some. If you get a bid, HIT IT>

[bajabaja]

Sounds like sound advice.

Where did you get this list, by your own research or from another?

And has any analysis of this purchase plan’s long term results been done?

Just a book name or link will get me started on research....

Thanks.

[Orange1998]

I have seen many bankrupt stock trade on Pinks latest is Washington Mutual. Amazingly these stocks go up because shorts want to cover to close the books. When the dust settles the stock flat line or rises from possible phoenix out of the ashes rumors (very unlikely for Mesa).

[Cedar]

Run away from the pink sheeets. Few things in this country are more corrupt than the “trading” on pink sheets.

If you care to lose your money, go for it.

[joinedafterattack]

I am a fan of Warren Buffett and this is all his idea which I follow.

Here are stocks that fit the profile now and are buy and hold VERY longterm. Buffett correctly states that you do not want to buy in and out of stocks but to find those few you can hold for decades as the compounding is massively more if not penalized by cap gain taxes.

Buy these with confidence and forget you own them.

INTU
ORCL
JNJ
KO
PETS
GWW
IBM
CTSH