Trending Content
Career Resources
WSO Free Modeling Series - Now Open Through
April 30, 2024
9 Free Financial Modeling Lessons
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
+Bonus: Get 27 financial modeling templates in swipe file
+Bonus: Get 27 financial modeling templates in swipe file
Following
Doing a sell recommendation pitch and selling it, for example
Going long stock in this situation has worked out recently
I was gonna say buy the equity stub and DM Dave Portnoy on Instagram / Twitter and watch it 10x in 2 days
But yeah, what you said.
Wasn't someone "100% certain" another stock would go bankrupt? Should have went long...
https://www.investopedia.com/news/why-tesla-verge-bankrtuptcy-vilas-cap…
@SEC
CDS?
Could short its bonds/use CDS/otherwise bet against non-equity instruments.
Could go long its nearest competitor, if you think the competitor will survive.
sec
Long any beneficiaries of that company going to zero.
Short its suppliers, assuming it's a big customer. Many companies will disclose customers that are 10%+ of sales in 10-K. If one of those customers is going BK, no good for the supplier.
look to purchase the 'fulcrum' security
oom puts
Buying bonds/loans at distressed prices assuming attractive creation multiple for the post emergence company.
Short bonds/buy CDS if think bonds will fall.
Buying trade claims at a discount assuming you think there will be a full recovery.
Buying puts on the equity.
Of course most of these things 1) aren't for retail investors, and 2) more importantly, its often extremely difficult to source these securities - a bond might be quoted at an attractive distressed price but more times than not there is minimal if any offered for sale - or the price of the carry of a short will be prohibitively high eroding potential returns.
Illo voluptates totam consequatur quia architecto. Quidem perspiciatis eum laudantium. Perspiciatis atque veniam aperiam delectus repellat. Assumenda et sed vel.
Ut perspiciatis quos perferendis eligendi quas molestiae. Labore voluptas consequuntur reprehenderit molestias id placeat aspernatur. Quas labore illum voluptatem cumque. Ut fuga doloribus voluptatum alias distinctio nemo voluptas perferendis.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...