Emerging from Chapter 11 Message Board

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Microcap & Penny Stocks : Emerging from Chapter 11

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To: James Lee Baldwin who wrote ()	5/12/1998 3:40:00 AM
From: Crossy	of 19

James & all, I hope You won't mind my joining Your group. I'm constantly seeking out unnoticed investment opportunities. Right now I'm studying a number of post-bankrupcty plays since 1995. Wanted to start my own thread on this but then I saw that such a nice place already existed. Thanx for Your efforts, nonetheless. I will start posting my research when I've finished parsing my list of tickers, to be at least able to show something. Usually my analysis is 3-fold in this context: 1) Identification of Chapter 11 emergence or favourable (to equity interest holders) plan-of-reorg filing 2) if available: analysis of post-emergence COST & CAPITAL restructuring by EBTIA(D) analysis and balance sheet ratios 3) analysis of progress after emergence in order to spot investment opportunities, especially by comparison of post-Chapter 11 netmargin and the company's P/S (Price to Sales) ratio in contrast with simialiar industry players' price to sales ratios and their Netmargin Due to the theory of imperfect information, post Chapter 11 plays are of particular interest IMHO. Why ? : Because no broker covers them and good news haven't spread around yet : EBTIA(D) numbers are often available, valuation comparison enables investors to spot extraordinary value :Many can emerge stronger than even years before they went in. : Some of the post Chapter 11 companies are big-size companies at penny-stock valuation. The difference here is that many or all factors of the value chain are usually present - No sales network to develop, no stores to be set up, no procurement chain to create etc.. Anyway, this all looks quite good IMHO - Many companies post Chapter 11 easily managed to increase 2x - 10x in their respective share price. Let's boldly go where noone has gone before <g> best wishes & happy inve$ting CROSSY

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