Guilty Until Proven Innocent
Many beaten-down bonds deserve to be beaten down and never to recover. A smaller number of issuers, also beaten down, do have the wherewithal to make good on their obligations and strengthen their balance sheets.
distressed equity
Just Because They’re Down Doesn’t Mean They’re Out
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.
These Are The Good Old Days For Distressed Debt
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.
More Ways To Get The Good Life
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.
Cracking The Code
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.
Cracking The Code
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.
Car Talk
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.
Clear Skies Ahead
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.
A Nail-Biting Sequel
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…
Bonds Lead Stocks Out of Distress
In this issue, Marty Fridson details an opportunity to buy the common stock of a company whose bonds he previously recommended.