Hey Value Digger, highly leveraged, low leverage or debt free stocks? Which ones do you recommend? I lost a ton of money from SDRL that filed for bankruptcy due to its debt overhang. I'm sure you know that investing in highly leveraged picks often translates into high risk and high reward.
Investorandsurfer, thank you for the question. To me, risk matters. And I want to sleep peacefully at night. As such, my picks are either debt-free or low leverage companies with strong catalysts, based on a 12 month investment horizon. I don't recommend highly leveraged companies because they are very risky and the three decades of experience in the stock markets has taught me that statistically speaking, most highly leveraged companies have filed for bankruptcy or have plunged wiping out existing common equity holders.