Frontier Airlines bankruptcy question?

FRNT has filed for Chpt. 11
Posters on MB's say common stock will be worthless as was DAL if and when FRNT is dismissed from Bankruptcy Court.
FRNT going to the pink on April 22.
I bot 6000 at.0.59 yesterday. Should I dump them?
Will they eventually be valueless?

Yep

Would you buy one sheet of toilet paper when the roll cost a dime, or go to McDonalds and buy 1 french fry?

Companies are cheap for a reason. I would rather buy 5 shares of Best Buy at $42 than $100 shares of Circuit City at $4.20

Dump that stock as soon as possible, you should never have bought it in the first place or you could try to sell a covered put to recoup some of your losses.

What was your objective when purchasing the stock? Since it is being delisted on 4/22, your liquidity will dry up. What catalyst will make you sell? Is there a buyout offer? Today's price range was from .50 - .67.

You may want to place an order to sell now at .60.

Yes they will soon be valueless. Dump them now while there is still a chance there is a "greater fool" out there to buy them.

Frontier should be able to turn things around before the shares become worthless. Raising rates and a better economy by fall will help.

Since its Chapter 11 they will reorganize and start a new company. But if there isnt enough equity leftover for shareholders after paying creditors the stock will be worthless and they will issue new stock that prior shareholders will have to buy again, if they want it. I dont know why they would. These smaller airlines live off of depreciation, and subsidies, and when the cash flow runs dry they file bankruptcy and start again with a new company. In the last five years Frontier only made a profit and had operating income for one year. But their cash flow from operations was very good. They were loading up on machinery and equipment, (and debt" and depreciating them in the face of almost constant losses. No taxable income and in fact getting tax refunds.