VMSYQ -80% - This Never Made Any Sense

If a stock has 5 letters and the last letter is Q, in my opinion, it means stay away. A Q as the fifth letter in a stock symbol means the company has filed for bankruptcy. Healthy companies do not file for bankruptcy and more often then not a bankrupt stock means the common stock is worthless.

We've seen the Q stocks get a push every once in a while mostly because they can be pushed. Q stocks are dead, bankrupt and almost never hold any value. But without fear of company dilution, reverse splits, these stocks can be bought and made to seem like they have value.

VMSYQ was one of those stocks that always made me wonder. For one the stock traded higher post bankruptcy than it did prior to it. It defied logic. VMSYQ was a $.0008 stock when it filed for bankruptcy back in November 2010 over a year ago. As recently as October 10th it traded for $.018 a share! Where is the logic? A bankrupt company trading for more than it did when it was a viable entity?

Today VMSYQ dropped over 80% to close at $.0018. As the shares are just as worthless as the day they filed for bankruptcy, I would not be surprised to see it back at $.0008. Unfortunately people were buying at $.002 to $.018 and ] must now hold or sell for a huge loss. Q stocks are not investments and those who got burned this time likely won't get burned again. Its a lesson learned for those who bought on the run up, and also a good lesson for those looking in from the outside. Q stocks are almost never a good investment.