Author Topic: I speculated and it cost me...  (Read 2529 times)

Kroaler

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I speculated and it cost me...
« on: July 16, 2020, 08:04:35 AM »
Everyone else was gambling, thought I'd jump in.
The house has won so far.

I have a little fun money I play around with separate from the index funds.

So I put 2000$ into Briggs and Stratton @ 1.17 / share.  That bad boy is tanking as they march towards chapter 11.

Will it all be wiped out? Stay tuned to see...

MustacheAndaHalf

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Re: I speculated and it cost me...
« Reply #1 on: July 16, 2020, 08:52:00 AM »
If you expect them to file chapter 11, why not sell at $0.79/share at a -32% loss and live to invest another day?    (I say that having rode out my own PUT option "bet" to the very end, at a -84% loss)

LoanShark

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Re: I speculated and it cost me...
« Reply #2 on: July 16, 2020, 08:56:52 AM »
What made you think it'd be a good investment?

Kroaler

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Re: I speculated and it cost me...
« Reply #3 on: July 16, 2020, 09:01:42 AM »
Speculation ..lol

oldmannickels

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Re: I speculated and it cost me...
« Reply #4 on: July 16, 2020, 09:24:19 AM »
man B&S is a complete mess

ChpBstrd

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Re: I speculated and it cost me...
« Reply #5 on: July 16, 2020, 01:58:34 PM »
If you wouldn't buy it again today, sell it today. Hopefully this was in a taxable acct.

celerystalks

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Re: I speculated and it cost me...
« Reply #6 on: July 16, 2020, 03:46:00 PM »
Sell what you have left and buy some gold.  It’s fun money anyway. Might as well be able to take it out and look at it.

Buffaloski Boris

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Re: I speculated and it cost me...
« Reply #7 on: July 16, 2020, 04:10:57 PM »
Briggs and Stratton? I did a quick search and one of the first articles that came up was titled “ Briggs & Stratton skips $6.7 million interest payment, awards $5 million to executives.”

How awesome is that? A company paying retention bonuses to preserve C suite talent while not making interest payments on debt. Glad they have their governance priorities straight.

The_Big_H

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Re: I speculated and it cost me...
« Reply #8 on: July 16, 2020, 10:35:17 PM »
Sometimes it’s best to crash and burn early.
The lesson is a lot less expensive.

It’s worse if you start out on a winning streak, start to think you are actually good at speculation, and then try it with big money when the luck runs out...

gent123

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Re: I speculated and it cost me...
« Reply #9 on: July 17, 2020, 04:24:19 AM »
Cheap tuition fee, many of us lost way more than that before becoming consistently profitable trading the market. Keep learning from the pros, define your risk appetite and build a strategy around it. Good luck!

celerystalks

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Re: I speculated and it cost me...
« Reply #10 on: July 17, 2020, 08:20:15 AM »
Briggs and Stratton? I did a quick search and one of the first articles that came up was titled “ Briggs & Stratton skips $6.7 million interest payment, awards $5 million to executives.”

How awesome is that? A company paying retention bonuses to preserve C suite talent while not making interest payments on debt. Glad they have their governance priorities straight.

Of course.

And if you want a few more laughs wait until the BK disclosure statement comes out in Ch. 11. These same execs who over leveraged the company and drove it into bankruptcy at the expense of the shareholders are vital to the debtor’s future success and profitability and are often given 10% of the NewCo equity to entice them to stay on after the bankruptcy.

ChpBstrd

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Re: I speculated and it cost me...
« Reply #11 on: July 17, 2020, 09:25:04 AM »
Briggs and Stratton? I did a quick search and one of the first articles that came up was titled “ Briggs & Stratton skips $6.7 million interest payment, awards $5 million to executives.”

How awesome is that? A company paying retention bonuses to preserve C suite talent while not making interest payments on debt. Glad they have their governance priorities straight.

Of course.

And if you want a few more laughs wait until the BK disclosure statement comes out in Ch. 11. These same execs who over leveraged the company and drove it into bankruptcy at the expense of the shareholders are vital to the debtor’s future success and profitability and are often given 10% of the NewCo equity to entice them to stay on after the bankruptcy.

This is the whole US economy and political system in a nutshell.

Bateaux

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Re: I speculated and it cost me...
« Reply #12 on: July 17, 2020, 09:55:15 AM »
What about Apple?  We've held for a long time and haven't bought in a while?  Is it time to sell Apple?   Or will it just continue to rise?

Stimpy

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Re: I speculated and it cost me...
« Reply #13 on: July 17, 2020, 10:06:07 AM »
What about Apple?  We've held for a long time and haven't bought in a while?  Is it time to sell Apple?   Or will it just continue to rise?

Simple answer = YES.

More complex answer: It depends on if your still confident in the company for a long term perspective.   If so, hodl, else sell.


If your gonna speculate, at least know if you have a chance to win.  After all... HTZ, was/is the best stock of all time.... at 0.40 after
declaration of bankruptcy.   /sarcasm

As long as it's funny money, have fun and learn a lesson or 4.


Buffaloski Boris

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Re: I speculated and it cost me...
« Reply #14 on: July 17, 2020, 02:47:25 PM »
What about Apple?  We've held for a long time and haven't bought in a while?  Is it time to sell Apple?   Or will it just continue to rise?

I think there’s a great chance it’ll go up or down. Or stay about the same.

I’ve pretty much moved away from single stocks. There are so many ETFs out there that allow me to diversify company specific risk. Depending on the one you pick, it can be boring or deliver plenty of heart pumping excitement.

v8rx7guy

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Re: I speculated and it cost me...
« Reply #15 on: July 17, 2020, 03:17:45 PM »
Best chance you have is that the Robinhood sheep come in and speculate like they did for Hertz.  If they do... BAIL!

celerystalks

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Re: I speculated and it cost me...
« Reply #16 on: July 20, 2020, 07:58:50 PM »
https://www.bascoreorganization.com/na/en_us/restructuring-information.html

Proud past, stronger Future! Former owners take a hike! Pay no attention to book value! Private equity will take it from here...

Buffaloski Boris

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Re: I speculated and it cost me...
« Reply #17 on: July 21, 2020, 05:07:21 AM »
Found this in their investor FAQ:

“Briggs & Stratton cautions that trading in its securities during the pendency of the Chapter 11
process is highly speculative and poses substantial risks. Trading prices for the Company’s securities may bear little or no relationship to the actual recovery, if any, by the holders of the Company’s equity securities as a result of the Chapter 11 process. The Company expects that its equity holders will experience a complete loss on their investment, depending on the outcome of the Chapter 11 process.”

Kroaler

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Re: I speculated and it cost me...
« Reply #18 on: July 21, 2020, 08:04:00 AM »
That doesn't paint a good picture!

Buffaloski Boris

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Re: I speculated and it cost me...
« Reply #19 on: July 21, 2020, 02:33:55 PM »
That doesn't paint a good picture!

Nor does their stock price which closed around $0.19 a share.

J Boogie

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Re: I speculated and it cost me...
« Reply #20 on: July 21, 2020, 02:53:22 PM »
Hilarious that in today's Robinhood world, liquidating companies have to tell would be investors not to buy stock. Hertz had to issue the same warning.

It's like these robinhood investors think flailing companies are like Rudy, just in need of an optimistic underdog-loving crowd to cheer them into the capitalism's endzone.

ChpBstrd

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Re: I speculated and it cost me...
« Reply #21 on: July 21, 2020, 03:00:11 PM »
Any comeback narrative has to face the reality that executive looting is the more attractive option from the leadership’s point of view. This sounds a lot like the story of Sears. At some point, executive ownership goes from being “skin in the game” to being a right to liquidate while paying oneself bonuses.

Kroaler

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Re: I speculated and it cost me...
« Reply #22 on: July 21, 2020, 05:05:38 PM »
If you expect them to file chapter 11, why not sell at $0.79/share at a -32% loss and live to invest another day?    (I say that having rode out my own PUT option "bet" to the very end, at a -84% loss)

Lessons have been learned! I should have done exactly what the post below said to do when they said to do it instead of riding to 0.19.  Glad it was a small amount.

My favorite reply was if you wouldn't buy it today, sell it.

Im going to leave it in my account indefinitely as a reminder.
« Last Edit: July 21, 2020, 05:10:01 PM by Kroaler »

celerystalks

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Re: I speculated and it cost me...
« Reply #23 on: July 21, 2020, 06:30:50 PM »
Hilarious that in today's Robinhood world, liquidating companies have to tell would be investors not to buy stock. Hertz had to issue the same warning.

It's like these robinhood investors think flailing companies are like Rudy, just in need of an optimistic underdog-loving crowd to cheer them into the capitalism's endzone.

B&S is not liquidating. Liquidation is a horse of a different color.