A noteworthy entrant to the distressed ranks is Xerox (XRX) – in the 1980s, the copier producer’s stock was one of the greatest performers ever, registering an astounding 4,500-fold gain in the 50 years through its all-time high on May 3, 1999. Xerox’s senior debt is now on the watchlist for downgrading.
Innovations of the past few decades have created many outstanding opportunities in distressed investing. To ease the pain of distress, financial entrepreneurs created new procedures to reduce the cost of fixing broken balance sheets – all to the benefit of individual investors.
The company whose bond we recommended in February and whose stock we are recommending in this issue has made a strong turnaround – plus, it has recently made three related purchases that should further help its profits… and share price.
In the heart of America’s Corn Belt, the company whose bond we recommend in this issue has quietly transformed itself from a traditional ethanol producer into a biotech innovator – unlocking more from every kernel of corn than anyone thought possible.
In the heart of America’s Corn Belt, the company whose bond we recommend in this issue has quietly transformed itself from a traditional ethanol producer into a biotech innovator – unlocking more from every kernel of corn than anyone thought possible.
The bond we are recommending this month was issued by a spinoff technology company that is the leading player in a growing industry. Now under new management it is doing the right things and beginning to turn the company around.
Since we recommended this company’s bond a year ago, the company has improved its performance, and the bond, still a year out from maturity, is trading near face value, having increased in price by 24%. This month, we are adding the shares to the portfolio.
High-yield bonds often predict the direction of their companies’ associated stocks a few months in advance. We’ve taken advantage of this phenomenon with three bond recommendations followed by the same companies’ shares. And in this issue, we’re doing the same thing…
In this issue, Marty Fridson details an opportunity to buy the common stock of a company whose bonds he previously recommended.
The largest movie theater operator in the world, the business we feature this month struggled after the pandemic, but management improved operations and bought distressed competitors and now is on a path to pre-pandemic levels of profitability.