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

Teletouch Communications Chapter 7 Petition Filed

Teletouch Communications and one affiliated Debtor filed for Chapter 7 liquidation petition with the U.S. Bankruptcy Court in the District of Delaware, lead case number 13-12620. The Company, which offers products and services (voice, data and entertainment) to consumers, businesses and government agencies, is represented by John T. Carroll of Cozen O’Connor. On August 2, 2013, the Company warned investors, “As a general matter, the Company is unable to pay its debts as they come due, is unable to continue to operate as a going concern, and has determined to effect an orderly wind down of its operations and a liquidation of its assets through a formal bankruptcy process. The liquidation of the Company will severely and adversely affect the value of the Company’s common stock and/or other securities. No assurance can be given regarding the values, if any, that will be ascribed in any bankruptcy proceedings to each class of debt or securities of the Company. In fact, it is the Company’s view that it is virtually certain that there would be no value available for shareholders in the liquidation. Thus, the value of the Company’s securities is highly speculative and any investment therein will pose severe risks of loss of the entire investment. Market prices for the Company’s common stock may bear little or no relationship to the actual recovery, if any, by holders thereof in liquidation. Accordingly, the Company urges extreme caution with respect to existing and future investments in its common stock.” At the time of that announcement, Teletouch Communications announced its intention to file for Chapter 11, not Chapter 7, protection and the board also created an office of chief restructuring officer, appointing Michael Juniper, a senior manager of Deloitte CRG, to the role.

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Amazon = US GDP 1970

Amazon joined Apple in reaching a $1 trillion market capitalization. $1 trillion is about the same as the total value of New York City property and the total value of loans at JP Morgan, the nation’s largest bank in terms of assets. Jeff Bezos’ $160 billion stake would place him (personally) as the #33 largest company in the S&P 500 in terms of market cap, next to Coca-Cola, Disney and Netflix. We aren’t bold enough to predict whether the shares will continue upwards or if they are in a bubble reaching maximum inflation. Setting aside for a moment their investment prospects, let’s admire the truly remarkable milestone that these two companies have reached. Read More.

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

 

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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."