Firstly I want to say how much we all appreciate the objectivity, honesty, integrity, and research work of Travis Johnson with Stock Gumshoe.

Over the years I have subscribed to many other investment newsletters where these qualities are sorely lacking.

In an Oxford Income special report dated September 2021, Marc Lichtenfeld recommended an extraordinary ROI of 158 % with Revlon Bonds.
” A Deeply Discounted Bond With a Huge Upside ”

“The Revlon bond I’m recommending is the 6.25% coupon bond that matures on August 1, 2024.

The Revlon (CUSIP 761519bf3) August 1, 2024, 6.25% coupon bond bottomed at around $10 back in September 2020. And it sits now at about $41, or $410 per bond. Its MEAR (minimum expected annual return) at this price is 63.8%. I’m extremely protective of my perfect bond track record, so I made sure to run an extensive financial analysis on Revlon before giving the greenlight and using it as our main recommendation. ”

My brief personal research uncovered :
These are JUNK Bonds with an illiquid market and a strong likelihood of default irregardless of ” legal contractual obligation ” or Marc’s 158 % ROI calculation

* The company currently has very little cash, and a mountain of debt.

* Citigroup Inc. has just sold loans secured by three of Ron Perelman’s Manhattan properties at a roughly 40% discount – the loans, which were in default with a balance of $193 million, sold for $115 million

* 20 % of Revlon’s current shares outstanding are short

* There was a legal fiasco involving Citigroup – Judge denies Citigroup a longer freeze on botched Revlon transfer. … The dispute arose after Citigroup, acting as Revlon’s loan agent, accidentally used its own money last August to repay an $894 million loan for the cosmetics company that was not due until 2023, when it intended to make a small interest payment.

* Revlon just recently defaulted on their 2021 bonds paying a $ 325 settlement for their $ 1000 Bond maturing February 2021. Here is the letter received by investors.

October 26, 2020

Dear Bondholder: records indicate that you are a holder of Revlon Consumer Products Corporation’s (“RCPC” and together with Revlon, Inc., the “Company”) 5.75% Senior Notes due 2021 (the “Notes”). To deal with this upcoming maturity, Revlon is offering to exchange your Notes for cash. We are sending this letter, together with a new offering book in connection with our extension of the deadlines relating to the offer to exchange your Notes.For each $1,000 aggregate principal a mount of Notes tendered, you will receive $325 in cash if you tender your Notes at or before 11:59 p.m. New York City time on November 5, 2020 (the “Early Tender Deadline”).If you tender your Notes after the Early Tender Deadline, but before 11:59 p.m. New York City time on November 10, 2020 (the “Expiration Time”), you will receive $275 in cash for each $1,000 aggregate principal amount of Notes tendered. As you may have heard, the Company has been dealing as best it can with a difficult business environment, particularly in the face of the ongoing and prolonged COVID-19 pandemic, which is putting a strain on the Company’s cash resources and liquidity. Under the Company’s credit agreements, if a large portion of the 5.75% Notes remain outstanding after November 15, 2020, most of the Company’s debt will accelerate and become payable on that date.Therefore, if you do not act now to participate in the Company’s pending exchange offer, repayment of your Notes will be at risk.

JUNE 2022 REVLON HAS NOW FILED FOR BANKRUPTCY – – making this investment worthless !!!

I immediately contacted the Oxford Club with my original concerns and did not receive a specific response. When REVLON recently filed for bankruptcy I again contacted them and received the following response:

Please find our policy on special report picks such as this previous one for Revlon for Oxford Income Letter below. We recommend placing a 25% trailing stop so you are able to self-monitor these trades since they will not be updated further such as portfolio picks would be within services.

For the recommendations such Revlon and others that come from a special report:

From time to time, The Oxford Club will discuss specific investment ideas that are highlighted in the Strategist’s special reports.
Unless otherwise stated, these recommendations will not be included in the Club’s various portfolios. This is because there are certain situations where we feel a company may be an extraordinary value but also may not necessarily fit within the selection guidelines of these existing portfolios.

As our members are gaining access to the special reports, they are entering their positions at a variety of prices, which is different from a standard recommendation found in our Alerts—this is why we do not provide those prices. In these cases it would not be fit for our Strategist to issue a sell alert.

For the recommendations issued in special reports, we suggest implementing our customary trailing stop of 25% from the entry point of your position.

Once our Strategist no longer finds these recommendations fit, they will be removed from the report—or the report itself will be removed entirely.

Sincerely,

Jordan Vass
Member Experience Coordinator
THE OXFORD CLUB

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