July 25 (Reuters) – Shares of linerboard maker Smurfit-Stone, chemical company LyondellBasell Industries and ethanol producer Aventine Renewable are potential winners among companies emerging from bankruptcy, Barron’s reported in its July 26 edition.
The financial paper advised investors to avoid stocks of theme-park operator Six Flags, yellow-pages publisher Dex One, SuperMedia and cable-TV operator Charter Communications.
Shares of Lyondell, which cut its debt load to $7 billion from $25 billion in bankruptcy and emerged with $2 billion in cash, look appealing at current levels, down from when it came out of bankruptcy in April, the paper said.
“Smurfit-Stone offers an attractive play on the improving market for linerboard, used to make cardboard boxes. It also could benefit from industry consolidation,” the paper added. (Reporting by Dhanya Skariachan)