Did you guys see that kmart (Kmrt) is now trading at over 110$?!!! I could have sworn a year ago they got delisted cause they were at 25cents or something. I also thought they traded under KM. now either i"m crazy, or losing it, or both, but I'm really confused. when you look at the history of Kmrt it never shows it below like 8$. WHAT HAPPENED? (and wheres my 1000% return when I need it)
Wednesday, November 17, 2004
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okay first off if you listened to some npr instead of christmas music you would know that sears and kmart are merging . so that is why the price jumped something like $16 today. (actually i like the christmas music better than npr most of the time too, i just happened to want to know what the world was doing today.)
as for the whole delisting thing, near as i can gather the change in stock symbol has to do with them emerging from bankruptcy. they still own a reasonable amount of assests i gather, so they are still worth something. so when they went into bankruptcy they cancelled thier old stock. in other words, the holders of KT got zip. probably not even a piece of paper that said they held KT stock. the bankruptcy court determined that this would happen, apparently investors are at the bottom of the totem pole when it comes to getting any money out of a bankruptcy. (personally i think this is a good policy, investment is risky, you are betting on a company doing well and bummer to you if they don't). So kmart emerged from bankruptcy and issued new stock, now under KMRT, which started off at something like $15 per share and this is the one that is now worth over a hundred bucks.
the article i read said don't be stupid. when you see a q after a stock symbol at pinksheets.com that means they are filing or in bankruptcy. that means the stock could become worthless. apparently after the courts decided that kmart would no longer honor the KM stock a ton of stock changed hand the next day because people didn't read the SEC ruling or didn't understand that the stock was worthless.
I find it very amusing that you noticed the stock price but not the merger news.
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