Exela Technologies: No Way Out. Likely Going Bankrupt


  • Exela Technologies is mostly a low-margined, labor-intensive, highly-leveraged business outsourcing company.
  • It needs to quadruple its share count to meet its short-term obligations, not to mention a $1 billion long-term debt maturing the next few years.
  • Management is exaggerating the company’s position in the Business Process Automation market.
Debt problem. Man pushing huge concrete ball up hill.


Investment Thesis

Exela (NASDAQ:XELA) shares dropped 98% since my last article, warning meme traders that the company will knock down their positions through new equity offerings with magnitude multiple times their meme bonanza. Despite its enormous drop in the past few quarters, the

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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