Finding Value in a Broken Deal
In the midst of the market tumult and a broken merger, this company’s bonds felt a sharp decline in price. For analyst Martin Fridson this distress has created a very appealing new opportunity.
In the midst of the market tumult and a broken merger, this company’s bonds felt a sharp decline in price. For analyst Martin Fridson this distress has created a very appealing new opportunity.
For distressed-debt investors, knowing about bankruptcy is critical. In this month’s update, we will tell you how bankruptcy works, and explain why it’s important for bondholders to know the ins and outs of the process – and to realize huge gains when bonds emerge from a troubled state.
This issue features of one of the largest and best-known online education companies in the world. The bonds declined 75% from their highs as the business stagnated in 2023 but now offer good value. As we detail in the analysis, these are speculative bonds with a meaningful chance of gain, a possibility of bankruptcy, and a real chance of loss.
Special Issue: Boeing Collapses. On January 27 of 2023 Porter & Co. published a warning about a mega-cap American stock. For the last 20 years there hasn’t been a company in America that’s embraced more terrible ideas from financial engineering to ESG and DEI than Boeing.
In this special excerpt from The Little Book of Picking Top Stocks, Distressed Investing analyst Marty Fridson reveals the four most important characteristics of stocks that historically beat the market.
This holiday weekend, we’re honoring one of the all-time investing greats by re-publishing a slightly condensed version of a speech Charlie Munger gave at the University of Southern California Marshall School of Business in 1994 – along with commentary from our own expert team.
There haven’t been many defaults in corporate bonds recently. But in the hard-landing scenario playing out for next year, there will be many more distressed bonds to choose from than there are now.
The issue will feature a prominent U.S. airline whose bonds trade at a steep discount. It’s a company with nearly 25 years of success and an industry-best customer-service record. Plus, we include an equity that provides some downside protection and lots of upside.
As the economy begins to contract, the opportunities in distressed debt will become more numerous and appealing.
In this issue, we’ll examine one of the few solid internet companies that escaped the dot-com carnage. This online merchandiser has a capital efficient business model and almost 10 years of impressive growth, making this bond a bargain at the right price.