Barron's Best Bets For Post-Bankruptcy Stocks (SSCC, LALLF, AVRW)

Andrew Bary, the author of the article: "Best Bets for Post-Bankruptcy Stocks" thinks that Smurfit-Stone Container Corporation SSCC, Lyondell (LALLF) and Aventine Renewable AVRW are the post bankruptcy stocks that have some potential on the upside. Smurfit-Stone (SSCC) is a bet that the linerboard market is going to improve. Its main competitors are Temple-Inland, Inc. TIN and International Paper Company IP. The author quoted Kevin Cohen, an Imperial Capital analyst, who thinks that SSCC's cash flow is going to improve and the stock could jump 35% in the next 12 months. Ed Mally, head of institutional research at Imperial Capital, believes that Lyondell (LALLF) could soon be trading in its upper 20s, and it looks very attractive at $16. Aventine Renewable (AVRW) is one of the top U.S. ethanol producers, and based on enterprise value divided by the yearly production it is valued at $0.82 per gallon of capacity. That amount is almost twice lower then the cost of new plants.