Portfolio Update

Welcome to the first update of The Trading Club for 2026. In today’s update, we’re providing a new hedging trade and detailing the recent introduction of a key new risk in today’s market.

In our October 10, 2024, report “Making Money Off Making Movies,” we recommended buying AMC Entertainment (NYSE: AMC) 6.125% bonds maturing May 15, 2027. Our optimism was based on improving operating results and comfortable liquidity – in part because the company was supplementing its cash by selling new shares to the public. Now we think

In our Distressed Investing report, “A Stock-Bond Combo Buy,” dated May 10, 2024, we recommended a $1,000 package of the Diversified Healthcare Trust (Nasdaq: DHC) 4.75% bond maturing February 15, 2028 – then trading at $808 – and Diversified Healthcare’s common stock, then trading at $2.31 per share. Our premise was that both DHC’s business

This month, we revisit two companies we know well: One is already in our portfolio, and the other we sold for a 237% gain. The market has given us a compelling opportunity to re-examine both companies at prices we had not expected to see again.

Investors are ignoring one of the most powerful and inevitable investment trends in history… one that has the potential to deliver extraordinary returns over the long term for investors who are positioned correctly. What is it? The convergence of AI and energy that is already well underway.