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You Can Be Right and Still Get Kicked in the Nuts
Going to own a mistake I made.

Over the past month I had been pouring money in to $DBDQQ. I know the company well, their technicians work with me in my day job. I know what they do and how they operate.

Diebold filed for bankruptcy in May and was delisted from the NYSE as a result. The stock dropped down as low as .01, but bounced to around .07 when I started buying. At this price, obviously, it didn’t take a lot of cash to buy a ton of shares. I felt good about my investment because I knew the company and knew that while bankruptcy can be a sign of a company going under, it was not the case for Diebold. They did not lay off a single employee and did not miss one day of work or break a single equipment/service contract. They simply had awful debt that needed to be restructured. I was happy to buy shares knowing it would re-list with the NYSE at some future date - and I assumed I would be a large benefactor when that happened.


Diebold announced their restructuring and re-emergence from bankruptcy last week. They had met all required regulatory requirements and would relist on the NYSE on August 14th. Great news! But not for me!

I missed in the release that all OTC stock would not be honored. That’s my fault, no doubt about it, but I am still very confused about how that process is kosher. I understand the risk of buying OTC equities. It makes total sense that you could put money into a company that can (and probably will) go to zero. What I don’t understand, or what I don’t think is right, is that a company can release a PR statement bragging about how it has done everything right and is relisting it’s stock, just to eat up $37M in its former stock, leaving the shareholder at zero.

So, I was right! I invested in a company in which the market had beaten down but the fundamentals were better than what was on the surface. And I still lost it all!

Tyler P's avatar
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