Bankruptcy News

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

Post-Bankruptcy Stocks

Eastman Kodak Added to Post-Bankruptcy Stock Index

Following the Company’s September 2013 emergence from Chapter 11 protection, Eastman-Kodak’s post-petition common stock (KODK) has been added to the Post-Bankruptcy Stock IndexTM (PBSI), which reflects the post-bankruptcy investing climate by tracking the 20-largest post-bankruptcy stocks within the four-year span immediately after their bankruptcy emergence date. The PBSI is a "capitalization-weighted" index that weighs each of its components based on its total market cap (number of shares outstanding multiplied by the price per share) each day. Recognizing that some post-bankruptcy stocks offer attractive valuationand generous returns, The Turnaround Letter developed the PBSI to provide for reliable, timely financial data for this under-appreciated—and often misunderstood sector.

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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

 

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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."