About six months, I wrote that I saw little hope that severely troubled Mexican homebuilder Homex (NYSE:HXM) would be able to pull itself out of a tailspin and salvage meaningful value. Since then, the shares are down about a third, the company has effectively ceased new operations, and bondholders and shareholders alike are wondering when and how the company will be able to restructure its debts and resume operations.
At the time of the company's last report, Homex had about $1 per share in book value remaining on the balance sheet. If Homex goes through a prepackaged bankruptcy similar to the one recently filed by fellow Mexican homemaker Corporacion Geo, equity holders may end up with about...
|FREE||SA PRO MEMBERS|
|IDEA GENERATOR||X||Exclusive access to 10 PRO ideas every day|
|INVESTING IDEAS LIBRARY||X||Exclusive access to PRO library of more than 15,000 ideas|
|SECTOR EXPERT NETWORK||X||Exclusive access to all sector experts for direct consultation|
|PERFORMANCE TRACKING||X||Track performance of all PRO stock ideas|
|PROFESSIONAL TOOLS||X||Professional Idea Filters to zero-in based on industry, market cap and more|