Heavily levered situations
Anyone have experience in investing in crappy firms with excessive debt…but who are rapidly paying down their debt? In theory once they pay down their debt, there should be rapid multiple expansion due to the heavy leverage….but that’s in theory. Anybody have insight into this?
The particular stock that came up (I stole this from a blog), is ALJ Regional Holdings. (ALJJ). The company has negative equity (not sure how exactly to assess that), but has been steadily restructuring the firm…
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