Post-Bankruptcy Stocks

ARTICLES

LCC - AMR Consolidation Explored

US Air Statement Issued

May 11, 2012

On May 11, 2012, US Airways Group, Inc. (NYSE: LCC) issued the following statement...


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GM Evaluates Strasbourg Sale Options

General Motors Review Announced

May 09, 2012

On May 9, 2012, General Motors (NYSE: GM) is conducting a comprehensive strategic review of its Strasbourg (France) transmission operations for potential sale.


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GM Reports Slight Quarterly Revenue Increase

General Motors Financials Reported

May 03, 2012

On May 3, 2012, General Motors Co. (NYSE: GM) announced first quarter net income attributable to common stockholders of $1.0 billion, or $0.60 per fully diluted share.


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FairPoint Communications Reports Revenue Decline

FairPoint Financials Announced

May 02, 2012

On May 2, 2012, FairPoint Communications, Inc. (NasdaqCM: FRP) announced its financial results for the quarter ended March 31, 2012.


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DAL Reports 11% PRASM Increase

Delta Monthly Performance Announced

May 02, 2012

On May 2, 2012, Delta Air Lines (NYSE: DAL) reported strong financial and operating performance for April 2012.


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Bankruptcy Court Confirms General Maritime Reorganization Plan

General Maritime Plan Confirmed

May 02, 2012

General Maritime announced that the U.S. Bankruptcy Court confirmed the Second Amended Joint Plan of Reorganization...


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CTS Appoints John R. Dudek General Counsel

CTS General Counsel Announced

May 01, 2012

On May 1, 2012, CTS Corporation (NYSE: CTS) announced that John R. Dudek has been elected Vice President and Assistant Secretary and appointed General Counsel of CTS Corporation effective May 1, 2012.


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GM April Fleet Sales Decrease 25%

General Motor Sales Release

May 01, 2012

On May 1, 2012, General Motors Co. (NYSE: GM) reported April sales of 213,387 vehicles in the United States.


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Buffets Restaurants Files Bankruptcy Plan

Buffets Restaurants Holdings Plan Filed, Disclosure Statement Approved

April 30, 2012

Buffets Restaurants Holdings filed with the U.S. Bankruptcy Court an Amended Chapter 11 Plan...


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CPN Net Loss Narrows

Calpine Quarterlies Released

April 27, 2012

On April 27, 2012, Calpine Corporation (NYSE: CPN) reported first quarter 2012 adjusted EBITDA of $325 million, compared to $303 million in the prior year period...


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Turnaround Tips

TLCorner

Where Are the Customers' Yachts?

This headline could easily apply to Goldman Sachs today, as recently described by former employee Greg Smith. Actually, it is the title of a book written in 1940 by a former Wall Street employee named Fred Schwed, Jr. The title refers to a story about person admiring the yachts owned by bankers and brokers who asks where the customers' yachts were. Of course, the customers, who had dutifully followed the advice of the bankers and brokers, couldn’t afford yachts. This just goes to show that there is nothing new about the attitude that Goldman Sachs employees were purported (probably accurately) to have about their clients. It was just as true in 1940--and likely has been forever--as it is now.

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Beware of Trendy Turnaround Candidates - Even Green Ones

The stocks of a number of “green” companies have soared and then crashed and burned over the past year or two. This is particularly true in the solar energy field. For example, Energy Conversion Devices saw its stock climb above 80 in mid-2008. But the company’s results never justified the lofty valuation, and it ended up filing for bankruptcy on February 14 of this year. The stock has fallen to 0.16, and it is probably overpriced even at that level. Read More.

Don't Chase the Headlines

The recent unfortunate accident involving the Costa Concordia cruise ship, which is owned by a subsidiary of Carnival Corp., raises an important investing question: Should you bail out of a stock if the company is affected by a serious negative event? Unless the event could be part of a series or trend, the answer is usually “no,” for two reasons.

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What did The Turnaround Letter see that others did not?

Questions & Tips

AskGeorge

Now that Greece's latest bailout is complete, is it safe to buy European stocks again?

We’re not at all sure that either Greece’s or Europe’s troubles are truly behind them.  But that said, we also believe that it makes sense to have some European exposure in your portfolio.  The advice we gave in the November 2011 issue still holds...

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With so much turmoil and uncertainty in the U.S. economy, and even more fear of collapse overseas, do you ever recommend just getting out of the stock market all together and hunkering down with something safer like bonds?

I never recommend getting out of the stock market entirely--or even making major changes to your allocation to stocks. The stock market is so unpredictable that if you bail out, the risk is very high that you will miss a significant upturn. Moreover, even if you make the right call to get out of the market, you then have to muster the courage to get back in. 

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What is your opinion on investing in foreign turnaround companies?

There are certainly good opportunities in foreign turnarounds, but also very significant risks as well. The market inefficiencies that provide unusually high return potential for turnarounds here in the U.S. are probably even greater in foreign markets. However, there may be special, local features that affect foreign companies that we may not understand when we view them from afar. 

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Bankruptcy Investing

George reflects on bankruptcy investing activity & trends seen in 2010. Read more.

Will the Euro survive?

With the resurgence of unrest in Europe, we are bringing back the poll question we first did last October: Do you think the Euro will survive as the common currency in Europe?
See Poll Results Poll Archive