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Wizard (WIZD) Stock Price

Started by jhm,

51 posts in this topic

jhm

jhm

Posted
Posted

I gotta ask... is anyone else seeing the current price ($0.18 at time of writing) as a buying opportunity? Full disclosure, I own a few grand worth... but considering a large pickup. I know they recently disclosed they don't have the funding needed to support past 2016, but I don't see them going out. And, assuming they don't go under, the price (by typical metrics) looks dead cheap to me.

 

Am I just a fool here? PLEASE... tell me what I don't know :eek:

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grebal

grebal

Posted
Posted

Generally, it will be worthless. If they declare Cha 11 and reorganize, it means existing shares in the new reorganized co. will be substantially diluted - at best (so if shares aren't worthless, you might just get 1 new share for each 100 old shares).

 

If want to bet on Wizard's future, save your money a while and buy the new stock that replaces the old.

 

The pecking order in a bankruptcy proceeding is (simply put) secured creditors, unsecured creditors, preferred stock and at bottom, common stock.

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1Cool

1Cool

Posted
Posted
Generally, it will be worthless. If they declare Cha 11 and reorganize, it means existing shares in the new reorganized co. will be substantially diluted - at best (so if shares aren't worthless, you might just get 1 new share for each 100 old shares).

 

If want to bet on Wizard's future, save your money a while and buy the new stock that replaces the old.

 

The pecking order in a bankruptcy proceeding is (simply put) secured creditors, unsecured creditors, preferred stock and at bottom, common stock.

 

I'd not want to bet that Wizard will not go into bankruptcy based on everything I'm seeing.

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DarthBane

DarthBane

Posted
Posted

This is a binary event.

 

Either they reorg and current equity stake holders will more than likely get wiped out. Only way you would get a piece of equity on the new company (assuming they stay in business and its not a full liquidation) would be as a debt holder.

 

Or they survive and turn things around you would be looking at significant upside.

 

Let me just say from personal experience and losing allot of money on high spec trades over the years; companies these days in general do not give a mess about equity share holders and will do whatever they have to do in order to benefit the company and management. If that means filing a BK and wiping everyone out, so be it.

 

Any money you put in harms way on this trade; you should be absolutely willing to lose 100% of it.

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Hamlet

Hamlet

Posted
Posted
Generally, it will be worthless. If they declare Cha 11 and reorganize, it means existing shares in the new reorganized co. will be substantially diluted - at best (so if shares aren't worthless, you might just get 1 new share for each 100 old shares).

 

If want to bet on Wizard's future, save your money a while and buy the new stock that replaces the old.

 

The pecking order in a bankruptcy proceeding is (simply put) secured creditors, unsecured creditors, preferred stock and at bottom, common stock.

 

Yup. Bankruptcy normally wipes out the common stock holders even if the company itself reorganizes and survives. Unless you think for some reason that they will avoid bankruptcy, you should avoid buying the stock.

 

If you like their prospects long-term, you can buy the new stock ( assuming they stay public) after they emerge from bankruptcy.

 

 

 

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shadroch

shadroch

Posted
Posted

If you currently have a few thousand dollars worth of it, I guess at one point you had close to a million dollars worth of it at its old prices. Since losing that didn't bother you, I say go for it.

Heck, invest another million and you might get controlling interest in it.

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90sChild

90sChild

Posted
Posted
If they go bankrupt but stay in business will the stock become worthless? Not really familiar with how penny stocks work.

Probably the same thing GM did to its shareholders in 2008.

They just went bankrupt then started all over again with a new stock offering.

Ford on the other hand stuck it out, never filed chapter 11 and their stock went back up from a dollar to the $10 or so it always was. So you have a long shot at getting rich but it is nothing more than a gamble, assuming you don't know their internal strategy.

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the blob

the blob

Posted
Posted

I once invested in a company called Razorfish, which was a website development company that during internet madness was trading at $100+ a share. When things crashed I bought it at like 50 cents and then the company actually turned a profit for the first time...I held on thinking that this was a company that would bounce back. I had bought like 2,000 shares thinking if it became a $10 a share company I will have made out nicely.

 

Well....I should have just bought comics with that money. This strategy works better with comics, that's for sure. I shouldn't have left my comfort zone.

 

I don't know where it is now, but it continued to do "o.k."...I believe bouncing between 50 cents and $1.00 or so, and then the stock started to tank again and management swooped in and bought the company at 20 cents a share. After I got charged some sort of fee I think my $1000 investment had turned into $100 and this all happened while the company was profitable!!!!

 

I did a lot better buying QQQ at the bottom and selling in 2006.

 

 

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the blob

the blob

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Razorfish did great after being taken private and screwing me (and the other shareholders) over. It wouldn't surprise me if my 2,000 shares was worth $50K now, except the company is some part of a larger entity now so it is difficult to quantify.

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grebal

grebal

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I did a lot better buying QQQ at the bottom and selling in 2006.

 

Sounds like good diversification with the comics, razorfish and cubes.

 

Fund is actually some good advice, index funds particularly because no costs to hire an investment manager to pick winners, and always get market performance.

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KingOfRulers

KingOfRulers

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If your goal is to invest money in pop-culture, I'm not sure why you'd choose this avenue over so many other options that you're likely already very familiar with, by nature of being on these message boards. AF #15. Hulk #181. New Mutants #98. Batman Adventures #12. I mean, the list of options is lengthy. If you want to invest in pop-culture, why not choose one of those or any number of similar items?

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the blob

the blob

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Posted

I did a lot better buying QQQ at the bottom and selling in 2006.

 

Sounds like good diversification with the comics, razorfish and cubes.

 

Fund is actually some good advice, index funds particularly because no costs to hire an investment manager to pick winners, and always get market performance.

 

The roughly tripling of QQQ during the 4 or 5 or so years I owned it wound up being the down payment on my house. That's one time I picked the bottom right. I didn't sell at the perfect top, but was pretty close and really had no choice anyway.

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the blob

the blob

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Wizard's not going away. May be different. May be absorbed by a bigger company, but they won't go away. Chicago Comic Con by itself is worth several million dollars in comparison to what other shows have recently sold for.

 

Absorbed via insolvency or going private while in distress usually means the shareholders get zippo, particularly if it has debt. Buying well graded comics in crisp clean mylars from Dale Roberts is a far better investment.

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