Bankruptcy News

We've summarized the latest docket activity and news for publicly traded companies currently operating under U.S. Bankruptcy Court protection.

Bankruptcy/Chapter 11 / Post-Bankruptcy Stocks / Software & Services

CyberDefender Chapter 11 Petition Filed

CyberDefender filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, case number 12-10633. The Company, which provides direct-to-consumer remote technical support services, Internet security software and utilities, is represented by James E. O’Neill of Pachulski Stang Ziehl & Jones. The Company concurrently announced that it has entered into an asset purchase agreement with GR Match, an affiliate of Guthy-Renker, to sell substantially all of its assets to GR Match. The acquisition is subject to certain conditions, including approval by the Court, higher and better offers, customary closing conditions and any required government approvals. GR Match has committed to provide up to $4.6 million in debtor-in-possession financing to facilitate the transaction and sale. This financing will allow the Company’s operations to continue normally while completing the sale. This additional liquidity will enable the Company to satisfy customary obligations associated with the daily operations of its business, including the timely payment for post-petition services, employee wages and other obligations. In conjunction with the Chapter 11 filing and pursuant to Section 363 of the Bankruptcy Code, the Company will file a motion for the establishment of bidding procedures to allow other qualified bidders to submit higher and better offers for its assets.

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Is there value in bankrupt PG&E’s stock?

In nearly every case, the shares of a company in bankruptcy become worthless. In very rare cases, however, they can become great investments. W.R. Grace (NYSE:GRA) shares produced a 75-fold return, as an example. With California utility PG&E (NYSE:PCG) now in bankruptcy, the range of possible outcomes for its equity is wide.

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EV/EBITDA: What Is It & Why Are We Using It More?

In reading recent editions of The Turnaround Letter, you have probably noticed that we are increasingly using EV/EBITDA as a valuation measure, rather than the better-known price/earnings multiple.  We thought it might be useful to describe this measure and why we like it.

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Turnaround Letter Stock Pick Named Top Performer of 2017

 

stock market advicex

 

What Last Year's Top Stock Pickers Are Buying in 2018

 

This Forbes write-up follows up on the recent Top Stock Tips report--naming The Turnaround Letter's Crocs recommendation the top performer of 2017: With 90% gains, CROX beat out 100 other investment ideas included in the report; and the stock continues to have value investing appeal, according to Putnam.

 

George notes, "We see additional upside for the stock in 2018 as management's efforts continue to bear fruit, though the gains will likely be more muted than we saw in 2017."