📉 Atos is heavily indebted and on the verge of bankruptcy.
🇫🇷 The French government plans to buy a strategic part of the company for supercomputing.
⚠️ Equity is worth zero, and shareholders are likely to lose everything.
🚫 Investing in Atos shares is highly risky; consider distressed debt investment instead.
@Academiadeinversion:
“Basically, Atos is bankrupt, it is very indebted. Regarding the possible purchase by the French government, the French government wants to buy a strategic part of this technology company, which was a part of supercomputing, but the company owes, I don’t know if it is 5 billion, and it wants to buy a part that I think it pays about 600 and something million. Basically, the equity, that is, the shares, are worth zero, and the market reflects this because it owes a lot of money and cannot pay. I think they are now trading at 0.2 euros per share, so everything points to this being a bankruptcy, and the shareholders are going to lose everything. It is true that there are some investors who, investing in companies that are in what is called distress, that is, that are in bankruptcy or creditor contest, make money, but they usually do not do it by investing in the shares. The shareholders usually lose everything. It is buying bonds and buying them at a great discount, especially bonds that in the priority of collection are at the top and that, for example, are listed with a 99% discount, but that if all the assets of the company are sold, 20% can be recovered, for example, buying at 10 cents something that is worth 20 cents. This is already for very specialized people, but well, we never get into that, and the truth is that I don’t know anyone who is dedicated to it, but there are funds that do it, and the truth is that some do it very well, but this is extreme hard drugs.”
Watch the exact part of the video where Paco talks about Atos here:
View the video on YouTube.
Read more articles by the world’s top 100 analysts on Atos at the following link. BLOG.
