No. of Recommendations: 4
So I am guessing only two things are likely/possible here?
1. Stock goes to 0
2. Possible Short Squeeze for temporary pop?
There is some faint chance that the company will be able to sell off enough assets to pay off its liabilities and send something to shareholders. I say this because it is theoretically true, not because I really have any idea. Also, the fact that there are still buying at 20-30c/share probably means they think there might be a payout - I doubt most buyers expect a short squeeze to bail them out.
Does it mean all Canada's Air Miles may be wiped out?
Probably not. The Bank of Montreal (BOM) is buying the Air Miles program, so they presumably plan to keep it going, and wiping out the points would not be a great way to build confidence. I'm guessing the points will stay, although they can always 'revalue' them if they feel like it (true before the bankruptcy, too.)
dtb
