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Educated Investor: Measuring Bankruptcy Risk and Analyzing a Firm Post-Bankruptcy

by AAII Staff | July 21, 2020


This week’s Educated Investor brings you the latest on AAII’s model portfolio of small-cap value stocks and an invitation to join us for a webinar this Wednesday to find out more about it. We also feature a timely article on what happens to your stock when a firm files for bankruptcy. Carrying through on the bankruptcy theme, our archive articles this week include a discussion about a measure of bankruptcy risk, a guide when you are looking to invest in companies coming out of financial distress, and a primer on the basic ratios that illuminate a firm’s strengths and weaknesses.

This Week’s Highlight

This week's highlight image

Model Shadow Stock Portfolio Chooses From Small Pool of Qualifying Stocks

by John Bajkowski


A rising stock market combined with more companies reporting negative quarterly and trailing 12-month earnings during the latest earnings reporting cycle resulted in a dramatic decline in qualifying companies.

 


Members-Only Feature Article

   
 

FEATURE ARTICLE · AAII Members Only

Corporate Bankruptcy and Your Investments

by Charles Rotblut


Once a bankruptcy is announced, investors have the opportunity to either sell their holdings or wait for the bankruptcy proceedings to be completed.
 

Hand-Selected for You

   
 

Using the Z-Score to Assess the Risk of Bankruptcy

by Charles Rotblut, Edward Altman


The Z-Score predicts the likelihood of bankruptcy or financial distress. A discussion with its creator reveals how to use the model and new variations on it.
 
   
 

From Lemons to Lemonade: Post-Bankruptcy Investing

by John Deysher


Tremendous bargains are sometimes hidden under clouds of public financial disgrace, offering unique investment opportunities to investors willing to consider firms that have recently emerged from bankruptcy.
 
   
 

16 Financial Ratios for Analyzing a Company’s Strengths and Weaknesses

by Joe Lan


These 16 ratios enable investors to compare the fiscal strength, profitability and efficiency of two or more companies.
 

Upcoming Digital Event

   
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AAII Shadow Stock Portfolio: From Theory to Practical Application

presented by John Bajkowski


Join AAII’s John Bajkowski on Wednesday, July 22, as he discusses the AAII Model Shadow Stock Portfolio.
 

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