Barron’s Features My Analysis on DAL’s Abnormal Pension Accounting


In his weekly column, The Trader, Vito Racanelli features my in-depth work on the funky accounting Delta Airlines’ (DAL) uses to mask $26 billion on off-balance sheet liabilities. Mr. Racanelli agrees with my assertion that DAL’s stock is under tremendous pressure as soon as investors recognize the looming pension liabilities.  

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Bail Out of DAL Before the Stock Crashes


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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Eastman Kodak (EK) Will Go Bankrupt

After accounting for its underfunded retirement obligations, Eastman Kodak’s net market value is about -$3.50 per share.

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Dead Company Walking: Sell Eastman Kodak (EK)

What I bet very few people, outside the company itself, know is that EK’s pension liabilities could torpedo the company into bankruptcy and send the stock to significantly lower levels. In the company’s recently published 10K, we found that EK’s pension obligations are underfunded by $2.6 billion, about 3 times the company’s market value.

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