Bankrupt Bargains?

Michael Sheehan

Physician's Money Digest, October15 2003, Volume 10, Issue 19

Tip

It may come as a surprise to manyphysician-investors, but there's still amarket for shares in bankrupt and embattledcompanies like Enron, WorldCom,and HealthSouth. Some brave or recklessinvestors hope that these corporationswill somehow rise from the ashesof scandal to pay back those who tooka chance on them. But dealing in stockof bankrupt companies is almost alwaysa no-win game, the experts say.Even if the company emerges frombankruptcy, any stock you boughtbefore the comeback will most likely beworthless since the new company willissue new stock. : You can tell acompany in bankruptcy issued thestock you're thinking about buying ifthe stock symbol ends in "Q."