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Penny Stocks For Sale

How would sale of Blockbusters affect stock?

I’m 27, and looking into start building a stock portfolio. A penny stock that Ive been looking into buying is Blockbusters. I know they are doing terrible, but I have reasons to believe that they can turn things around. Today I read that they are probably looking to put the company up for sale. I was wondering, how would the sale of Blockbusters affect its stock prices? What factors are there to consider? Is there a rule of thumb to “Not Buy” when a company is going to sell? Any info will be appreciated. Thanks

Blockbuster has filed bankruptcy. According to the Wall Street Journal they are seeking to sell their assets. The money will be used to pay off creditors. If they were selling the equity, the company itself, then the money would go to the shareholders. What is likely to happen is that they will issue new shares and the current shares will be canceled and worthless.

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