In case of link malfunction above, go here.
BEST $50 INVESTMENT I EVER MADE!
By Bob Mintz
Yup, even in these lean times, I can look back to the first stock
that I ever purchased, and even though the company itself is bankrupt,
I can still say that I made, in my opinion, a good buy.
The year was 1980 and I was working for a CPA firm that included
a Wall Street brokerage firm as one of its’ clients. It
was a late Friday afternoon and this brokerage firm had exactly
4,999 clients registered with it. The owner mentioned to the brokers
that he would sponsor a party when they reached the 5,000 plateau.
It was 3:45 and the market would close in 15 minutes.
I checked out the price of (LIO) The Lionel Corp., not to be
confused with manufacturers of our beloved trains. They had already
sold the trademarked name by this time.
It was selling for $7 a share, so I decided to buy all of 5 shares.
With the $15 commission, I paid a grand total of $50, and asked
my client not to have the shares held in street name, in other
words, to actually give me the certificates. And to make things
a wee bit more complicated I wanted individual shares. Hey, the
employees got their party because of my “fling.”
END OF THE LINE: On Wednesday, June 2, 1993, the Lionel Corp,
famous for the model trains that it once made, announced it would
go out business, closing its financially troubled chain of discount
The Edison NJ based retailer, under Chapter 11 bankruptcy protection
since 1991, had been unable to reach a plan of reorganization
with creditors, who voted in favor of liquidating the company’s
remaining 28 stores in seven states.
Lionel Corp. had operated Kiddie City stores in Edison and Cherry
Hill, N.J. and in New York, Pennsylvania, Ohio, Maryland and Virginia,
as well as Playworld stores in Florida.
“In order to maximize the recovery for creditors and all
other interested parties, Lionel will negotiate with the creditors’
committee toward an agreed program for an orderly liquidation,”
said the Lionel announcement.
All of us reading this may purchase Lionel trains from the past
or the future, but not many of us will have consecutively numbered
stock certificates unless Wellspring Associates goes public of
Good buy/Good bye