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

Valley Forge Composite Technologies Chapter 11 Petition Filed

Valley Forge Composite Technologies filed for Chapter 11 protection with the U.S. Bankruptcy Court in the Middle District of Pennsylvania, case number 13-05253. The Company, which produces technology products, is represented by Maurice R. Mitts of Mitts Milavec. According to documents filed with the SEC, on October 14, 2013 Evan Levine was elected as chairman, following the resignation of Larry K. Wilhide from that role - and also following the resignations of Richard Relac, Eugene Breyer, Dr. Victor Alessi and Raul Fernandez. On the same date, Wilhide also resigned as interim president, interim chief executive officer and chief financial officer. Valley Forge Composite Technologies further announced its board’s recent affirmation of the Company’s decision to suspend all efforts related to its photonuclear detection system project, known as “THOR.” The Company explains, “When we review the objections of other nuclear systems for commercial application, we find that this system does not obviously improve upon their faults. Therefore, with the data we currently have, we believe substantial investment is required and the probability of success appears low.”

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Turnaround Investing Blog

IBM: Not Yet Time to Swing at this Pitch

IBM’s stock underperformance since IBM’s current CEO took the helm in 2012 has been stark, with the shares declining 23% while the S&P500 Index has more than doubled. One big problem: revenue growth rate is zero, at best. Without revenue growth, what’s left to entice investors? The real driver of value at IBM – free cash flow that is used to repurchase shares. Can IBM borrow its way to shareholder prosperity as its cash flows shrink? What to do with IBM shares? Wait for a better pitch in the form of a catalyst or much lower valuation. Read More.

Comparing Stocks Vs. Bonds

While the common stock of a turnaround candidate usually has the greatest upside potential, other classes of securities, such as bonds or preferred stock, may offer attractive profit possibilities with less risk. Many turnaround companies have only one class of securities available to investors but where there are different classes to choose from, it can pay to do a little extra analysis of the various options.

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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."