(Advance note: thanks again to all new and returning premium subscribers. I highly recommend all subscribers follow me on Twitter @puppyeh1 as I do endeavor to live-tweet key changes in my views/trading positions in any name I have written up.) This will be a bit of a ‘grab bag’ post, intended to catch up new … Continue reading Mark to market: catching up on GAN, WTE, AER, Gold, Tankers, BFAM, and more
MDR
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