Leveraged Beasts: Wall Street's Top Leveraged Stocks

We at Andy's Angle are strong believers in the fact that leverage, usually in the form of debt, is misconceptualized as a kiss of death for stocks, when it simply is not the case.

Our first Value Investigation aims to uncover what we call "powder kegs" or companies that have been heavily discounted as a result of being highly leveraged, but now provide deep value investing opportunities that can immensely outpace market returns.

Leverage offers an opportunity to investors that is not found anywhere else, that is, no other investment can match the returns offered by a company, a good company, loaded with debt. This is because both investors and management often fail to agree on true valuations, and as a result, you find companies that are trading at valuations that are not representative of the company that the stock represents.

This research report will judge three companies on the basis of five main metrics:

Growth: Is the company growing? What is their future like?

Health: How is the company doing financially? Is their business model sustainable? Will they survive?

Valuation: Is the current valuation fair? Is there enough value yet to be realized to make it a good investment?

Risk Profile: What are the risks of investing in this company? Are they worth the rewards? Are there any fatal risks to the business?

History: How has the company historically performed? What has management done in the past that may foreshadow the future?

All five of these metrics will be rated on a specialized scale and then output an overall Andy's Angle Value Score, which will be updated as more research reports are released and tracked on a "leaderboard" for the stocks we have covered.

Let's get into our first three researched companies.