If the supply of distressed bonds increases, the prices of distressed bonds will likely decline. This suggests some bargains will become available for discerning, patient investors. We’ll be carefully looking over the distressed merchandise to generate profitable recommendations.
No discovery in the history of science has had a larger impact than that of monoclonal antibodies (“mAbs”) – the laboratory-made proteins that act like precision-guided cruise missiles, targeting a specific molecule in the body. Last year, five of the top 10 best-selling drugs in the world were mAbs, including the number-one best-seller Keytruda, Merck’s cancer therapy that did $29.5 billion in revenue.
In Distressed Investing’s December 2024 issue “Rising From The Ashes,” Marty Fridson and his team recommended buying QVC’s 4.375% bond maturing September 1, 2028, then at $840, up to a price of $860. The bonds currently trade for $878, up 4.5% from the entry price. We liked QVC’s business –- which had been improving –
Despite the risks and volatility in the U.S. stock market, there are many bargains emerging – if you know where to look. In this issue, we’re providing updates for six stocks in the portfolio that each trade at highly attractive valuations – and are being overlooked by Wall Street.
Stocks dropped 10% over a four-week period in February and March. As is usually the case, the performance of bonds didn’t capture quite as many headlines. But their behavior as equities sank is worth examining – especially by investors who don’t know about the benefits of distressed bonds.
This month, Erez Kalir focuses on a company that has developed a drug that promises to be a game-changing therapy for severe pulmonary conditions for which there is currently no treatment.
In this issue, we provide updates on several current recommendations in the portfolio that have fallen in value. Some of these are world-class companies that dominate their respective industries. One is not. The distinction provides a good lesson in when to sell and when to hold.
Tight credit isn’t the only factor driving the Distress Ratio’s rise and fall. But it’s a powerful one that’s likely to keep making it harder for struggling companies to refinance their maturing debt in coming months. It all adds up to a likelihood that distressed-debt investors will have a significantly wider array of bonds to choose from before very long.
For those who have successfully ridden the MicroStrategy train – seeing huge gains on investments into Bitcoin – congratulations. For those who have not ridden that train, this issue of Biotech Frontiers will offer you a similar opportunity: a recommendation of a company that is now as little-known as MicroStrategy was back in 2020, with very real potential for similar upside.
In this issue, we provide updates on several current recommendations in the portfolio that have fallen in value. Some of these are world-class companies that dominate their respective industries. One is not. The distinction provides a good lesson in when to sell and when to hold.