Never Sell A Great Business
Many investors believe the biggest mistake you can make is buying a stock that performs poorly. But those mistakes are not as bad as selling great businesses… or not buying them to begin with.
distressed investing
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.
A Cooties Shot
Most investors think of bonds as unspectacular but steady performers whose role is to stabilize a portfolio that also contains the higher-octane asset class of common stocks. But subscribers to our Distressed Investing research know there’s another side to the story.
Not A No Brainer
Today Marty Fridson offers a word of caution for investors: The opportunity to purchase closed-end fund shares for less than the value of the assets they represent sounds like free money. But there’s a catch, he says.
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.
A Fire Sale At QVC
In April, we recommended selling the bonds of this e-commerce business at $878 – which we had recommended buying four months earlier at $840. They have since fallen dramatically. In this report, we are recommending buying them back. And we explain why the price of the bonds has dropped and why we think it will rise again.
Sell Alert: Herbalife 4.25% Convertible Bonds
On February 13, we issued our Distressed Investing report A New Burst Of Life, in which we recommended purchasing Herbalife’s 4.25% convertible bonds due June 15, 2028. Today, we are recommending selling the bonds, to realize a return of 35% from our entry price. Our thesis for recommending the bonds less than five months ago
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.
Sell Alert: JetBlue Airways 0.5% convertible bonds maturing April 1, 2026
Today JetBlue Airways (Nasdaq: JBLU) announced a new round of cost cuts as travel demand remains sluggish. The company is reducing its schedule and ending service to certain markets. JetBlue CEO Joanna Geraghty indicated the company is unlikely to achieve its previously stated goal of a breakeven in operating margin this year. Since we recommended
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.