Chapters 5 and 6 of You Can Be A Stock Market Genius find our hero and author, Joel Greenblatt, walking on the wild side, as he looks at bankruptcies, LEAPs, restructurings, and other 'odder' corners of the market. Bankruptcies and similar topics in these chapters share some of the classic special situation traits of spin-offs and the like, but they also extend to a messier area of the market. So what holds together? We discuss that as well as some of the lessons Greenblatt drops in these chapters.
Topics Covered 4:00 minute mark - Looking at bankruptcies as a source of long ideas 16:00 - Greenblatt's self-confessed slumming and how that could work (or not work). 19:15 - A rule for selling vs. holding 22:00 - Is restructuring a special situation or just good fundamental analysis? 29:30 - Chapter 6 and the importance of leverage 42:00- Final notes