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Diligence Institute

Highlights From New Constructs Investment Research

US Steel (X) At Risk Of Pension Pressure

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Some stocks are more dangerous than others. In an anemic economic environment, the most dangerous stocks are those with issues that are lurking behind the scenes or in footnotes.

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Pensions Weigh On Goodyear (GT) Stock Potential

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Goodyear Tire & Rubber (GT) must overcome $3.7 billion in underfunded pensions plus $6.3 billion in debt ($1.1 billion of which is off balance sheet) before investors could see any upside.

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“S&P: Delta could be in line for upgrade” – Are they kidding?

“S&P: Delta could be in line for upgrade” – Are they kidding?

I do not think S&P’s analysts are aware of Delta’s staggering $22.3 billion in off-balance sheet liabilities, which include $14.1 billion in underfunded pensions and $8.2 in operating leases.

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Bail Out of DAL Before the Stock Crashes

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I recommend investors avoid Delta Airlines (DAL). I think the stock could see significant downward pressure as more investors realize how the company is propping up its earnings with relatively aggressive accounting for its pension and postretirement plan (“pensions”), which are already seriously underfunded.

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