Should I buy indymac sotck now that there open again at .07 cents?

Question

Since indymac bank is now open again would it be wise to buy the stock so cheap and will it carry over once the feds sell it?

Answer 1

Not a move a good investor or trader would make. The odds here would be less than putting your money into a slot machine.

Read;

Trading In The Zone, Mark Douglas

Answer 2

Grumple is right.  IndyMac will be sold - at least the assets.  It should have been sold before the Fed took it over.  However there are no big buyers.  Bank America is sattled with its' own problems[Countrywide], as is CitiBank, WellFargo, WaMu, Chase [Bear Stearns].  Do you get the picture?

Citibank would likely not fail as it is owned by the UAE, and Saudi's They are putting money in to shore up its' financial statement.

However I think you are playing with fire.  Commodities are the only sure bet right now.  Gold, Silver, etc.  US Dollar is declining in value, and inflation is out of control.  Year over year Gas is running 26% - I know this is not in the official numbers, but reality is reality.

Answer 3

That would be very speculative. The history of bank liquidations like this is that common holders end up getting nothing. There is a small chance that someone would pay enough for the bank to pay shareholders something, but it is doubtful.

Answer 4

"Wise" is not the proper word, foolish would be better.

The company is in receivorship, (bankrupt) why not buy a company that has a better future.

The Feds don't sell it, they liquidate it, and they way the government works they'll settle for almost anything on the dollar.  All the companies that the Fed have liquidated the shareholds always get screwed and the Feds don't care,

The Feds are not in business to protect the shareholders, they must protect the depositors.  So when it comes to liquidation, the stockholds are the last to be protected

The "Pink Sheets" are full of stocks selling for $0.07 and more selling for alot less, BUT they are not in bankrupcy,

Answer 5

there could be a bankruptcy and you won't be seizing any of the assets because the banks indymac  borrows and the bond buyers comes first when seizing assets.Preferred share holder second and third comes you, the common share holder(you might get nothing even).

Answer 6

If you want to take a "FLYER"

Just remember flyers RARELY pay off.

If you can afford to LOSE 700.00 you could buy 10,000 shares @ .07 cents a share and sit back and see what happens.

Answer 7

extremely high risk, just plan on losing everything, however if you do gain IT  COULD BE BIG!!!!

Answer 8

Very high risk...Only put up what you can afford to lose.  I think a better "chance" is Citibank which is near 15 down from the 50s.

Answer 9

No.  Its in the pinksheets now and its going to be liquidated.