Shinoken update: the story keeps getting better, still a double and more

I wrote up Shinoken (8909.JT, listed in Tokyo) here about 6 months ago. At the time the stock was trading at <4x earnings, <3x EV/EBIT and at a considerable discount to replacement cost, due to the overhang of a number of scandals in the build-to-let apartment industry in Japan and a misunderstanding of the company's … Continue reading Shinoken update: the story keeps getting better, still a double and more

McDermott defaulted debt: a compelling speculation

Summary: I am long the McDermott 10.625% ’24 defaulted senior notes, which trade around 12.5-13c currently. At this level I believe you are creating the recapitalized MDR equity at a low multiple of likely trough EBIT/EBITDA in FY21E – 4x EV/EBITDA, 5x EV/EBIT – with a free look at bargain basement multiples (1.5x EV/EBITDA, 1/7x … Continue reading McDermott defaulted debt: a compelling speculation