January 8, 2018 12:25 PM

US Bankruptcy can be a very rewarding process for a company. Unprofitable contracts are eliminated and debt is reduced. For a cyclical, capital intensive and commodity industry, bankruptcy can be a godsend. Look at Tidewater (TDW – USA), an operator of Offshore Service Vessels (OSVs) used in oil production. Through bankruptcy, it’s eliminated all of its in-chartered vessels, reducing expenditures on leases at a time when industry utilization is at generational lows. Even more importantly, i... more

Categories: Current Investments
Positions Mentioned: TDW
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TOO Much Of A Klusterfuk...

January 1, 2018 1:27 PM

Every once in a while a stock simply goes into the “too hard pile,” which creates opportunities. Honestly, I don’t blame investors for sometimes giving up on the analytical side. I mean, Teekay Offshore Partners (TOO – USA) really is a klusterfuk for the ages. It was meant as a drop-down Ponzi vehicle (I wrote about those 2 years ago as the whole MLP Ponzi sector was imploding Part I, Part 2, Part 3), except it failed in its Ponzi implementation and the IDRs went too far out of the money fo... more

Categories: Current Investments
Positions Mentioned: TOO
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Xmass Comes Early From OCC

December 20, 2017 10:52 AM

Two months back, I clearly made my case for why Tesla (TSLA – USA) will eventually implode. Of course, the timing of that implosion is difficult to guess at—hence my use of a bear put spread. Now, thanks to OCC, I can go out much further in time. While, I suspect that TSLA’s share price is much lower by January 2019, by January 2020, it will have blown through over $10 billion in additional operating losses, working capital needs and worthless cap-ex, and the shares are almost CERTAINLY much... more

Categories: Current Investments
Positions Mentioned: JYNT, AIM CN, TSLA
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Most Canadian PM's Have Crappy AIM

November 10, 2017 9:55 AM

I previously wrote about Aimia here and here. Sorry in advance for all the numbers but it's necessary... So, earnings came out Wednesday night and I quickly read through for a few key segments of interest to me (redemptions, card spend, cash build, PLM) and within a few minutes, I was celebrating with a bottle of tequila. For a quick backstory, AIM has been in the dog-house ever since Air Canada decided to end it's agreement in 2020. At first, there was a fear of a run on the bank (didn'... more

Categories: Current Investments
Positions Mentioned: AIM CN
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Fix Hellas

November 2, 2017 1:28 PM

To see part 1, click here To see part 2, click here No economy can recover without a functioning banking system. Greece’s banks have been in chaos for nearly a decade, during which time roughly 45% of all deposits fled overseas, forcing the need for over 120 billion Euros of Emergency Liquidity Assistance (ELA) from the ECB while new loan issuance ground to a halt. As a group, the banks currently have stated Non-Performing Exposures (NPEs) of 50%, which would be even higher if not for th... more

Categories: Travels
Positions Mentioned: TPEIR, ALPHA
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