View as an RSS Feed
Walter Energy: The Analysis And Probability Of A Bankruptcy
- Walter Energy's over levered capital structure is becoming too constrained to maintain its rapidly rising interest payments.
- A global supply glut of Met coal will likely take years rather than months to reverse course.
- High yield market is already betting on a restructuring, interest payments alone in the last four quarters have risen from $53 million to roughly $80 million per quarter.
- Debt service payments for fiscal year 2014 will reach an all time high at approximately 23% of revenues.
Staples: Industry Consolidation Leading To 50% Upside
- The poor quarter was negatively skewed by difficult comps against a 53rd week, unfavorable foreign exchange rates, and 109 store closures.
- The market systematically underestimates the speed at which industry consolidation will take place between Office Depot and Office Max.
- The street under appreciates Staples market leading position, as well as its growing e-commerce business.
- Private equity is likely a potential suitor in a non-levered high free cash flow retailer with significant hidden value in its online business.
- Business trades at around 10x LTM earnings, with significant free cash flow levers starting in 2015.
- SolarCity: The Most Egregiously Overvalued Stock In The Nasdaq?
- Aeropostale: Our Top 2014 Pick For A Unique Short Covering Rally
- SolarCity: A Black Box Of Mystery
- Buffett And Klarman Not Buying, Time To Sell?
- Gold Fever Catches A Cold
- Staples: A Cigar Butt Worth Picking Up On A 20% Correction
- Natural Gas: A 10 Year Bull Market In The Making?
- GSV Capital: How To Play The Twitter Revolution Into A 100% Gain
- Dell: A Low Risk Arbitrage Play With 15%+ Upside
- Gold: Picking Up Pennies In Front Of A Steamroller
- Sandstorm Gold: An Uphill Battle
- Exco Resources: On The Offensive After A 2-Year Hiatus
- ExOne: The Quiet Before The Storm
- Encana: A Potential Low-Risk Double With A 4.7% Yield
- Tesla Motors: A Short Sellers Dream Stock?
- SolarCity: The Tech Bubble All Over Again?
- EXCO Resources, Inc., A Long-Term Play On Natural Gas