Exide Technologies fka EXTC

[Renegades17]

I have not visited any of their facilities. By the time I got interested, Vernon was shut down by the DTSC. Probably a good idea to go and check it out if you can arrange it.

I am long the stock, though one has to understand that this will probably be a long process to resolve. That said, if the company shows meaningful improvement in EBITDA in the December and March quarters, the bonds and stock should react positively.

I went back through the Pilgrim's Pride (PPC) bankruptcy and aftermath. Obviously two very different businesses, but there were many similarities. First, PPC listed assets about $1bn above liabilities in its original BK filing. PPC had liquidity issues too. Second, PPC ran into cost issues and an excessive debt burden which hurt liquidity. XIDEQ had similar issues with lead and upcoming debt repayments. Third, the language in subsequent filings was very similar.

There will be tax loss selling in the next two weeks...I think if it holds above $0.17-$0.18, that will be a good outcome and the first couple of weeks of January could be very interesting.