Some stocks simply are riskier and junkier than others. It’s as simple as that... Yet as I mused in my recent On the Street, “Playing Investors as Fools,” For most investors, it’s the same old “fear of missing out” (“FOMO”) trap… that if they don’t get in they’ll miss out on the next big home run – which for some reason always happens to involve a company on the verge of going out of business. (When there are thousands of other stocks they can choose from, that makes perfect sense,
Only a thin line betw the status of (i) junkier and (ii) debtor in possession—all needed is a good Ch 11 lawyer who has received a good retainer or deposit
Are companies bringing new products or services to market better debt than large companies which borrow to create more supply (against falling demand). Is this where fixed costs start to work against you? And AI lifts small boats more than big ships, not everybody?
IMHO, no one size fits all. Depends on their ability to 1) earn and 2) secure future financing which 3) in this environment will cost more than it did before! ;-)
does this break down goods v services. maybe a small software company (AI) is more efficient at converting debt into sales? They have no equipment, just employees. 2&3) Debt is something you take on before you sell the company. GM has a great price to book, but do you want to own it?
All these weak sisters came public for one reason only, to make $ for management and advisors, all at the expense of the public investors
Only a thin line betw the status of (i) junkier and (ii) debtor in possession—all needed is a good Ch 11 lawyer who has received a good retainer or deposit
Seems you might know something about that, sir!
Are companies bringing new products or services to market better debt than large companies which borrow to create more supply (against falling demand). Is this where fixed costs start to work against you? And AI lifts small boats more than big ships, not everybody?
IMHO, no one size fits all. Depends on their ability to 1) earn and 2) secure future financing which 3) in this environment will cost more than it did before! ;-)
does this break down goods v services. maybe a small software company (AI) is more efficient at converting debt into sales? They have no equipment, just employees. 2&3) Debt is something you take on before you sell the company. GM has a great price to book, but do you want to own it?