It basically is like a call option at $1 but without the expiration risk. Unless the entire business expires but I'd say more likely someone buys it if it looks like it can't make it and you gain equity in a new company. It trades with the volatility of a call option which makes it an interesting play if you have some fun money. When it hits the sub $1 level, like $.95 you buy. It trades back up to $1.10 - $1.15, you sell, turn 10% + over and over. In the last month that trade could have been made 3 or 4 times. If things start to turn up for oil you may sit on it and see where it goes.
I remember in 2008-2009 SIRI traded to almost nothing and everyone said it was going out of business due to massive debt. You could buy it for like $.15. SIRI restructured the debt and didn't fall apart and and if you bought it with fun money, it turned into a lot of fun money. $1000 investment in SIRI on Jan 1 2009 would be worth around $25k today. Linn recently did a debt restructuring that was looked at as favorable. Hopefully it works out. But, I think it's a fun money play more than an investment.
