Special Situation in a #ShitCo's Orphaned Baby Bonds

Suitable for small AUM investors only

In this post, I discuss a special situation in a publicly-traded company—a company that truly embodies the essence of a #shitco (see here for more information on this topic). Despite being a prominent player in its industry, the company has faced a plethora of largely self-inflicted challenges over the past year. And while it may be a bit early, there are nonetheless prospects for a turnaround.

The security I discuss herein is the company's orphaned baby bonds, primarily held by retail investors and currently trading OTC on Pink Sheets. I believe this dynamic results in a mispricing of the security. Furthermore, recent news flow provides increased confidence that there is indeed a valuable business at its core. If the turnaround situation unfolds as expected, you can 2x your money (pre-tax) over the next 3 years through coupon and price appreciation. The bonds have already experienced a decent run-up (on small volumes) since I started writing this post. Therefore, considering liquidity and trading volumes, I am putting this content behind a paywall to limit competition.

Full disclosure: I hold a long position in these securities. Please note that this opportunity is suitable for small investors only.