From Lemons to Lemonade: Post-Bankruptcy Investing

by John Deysher

How would you have liked to have purchased reorganized Kmart stock at $15 per share (current price $104)?

Or reorganized Metals USA at $4.50 (current price $18)?

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Both firms have recently emerged from bankruptcy, and the stocks have transformed from lemons to lemonade. Properly executed, post-bankruptcy investing can be a portfolio sweetener.

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