Blake just ran a scan that should terrify every bull.
He found 47 major stocks that literally cannot meet their debt obligations without selling inventory. Companies like Boeing, Starbucks, Lockheed Martin, and Caterpillar are all on the list.
Here’s the brutal math Blake revealed:
- Quick ratio below 1.0 means these companies don’t have enough liquid assets to cover short-term debt
- Declining free cash flow shows the bleeding is getting worse, not better
- Boeing’s chart already broke support and is setting up for a potential drop to $180
The timing couldn’t be worse. Credit markets are tightening while these companies desperately need refinancing.
Blake’s solution is brilliant. Instead of shorting stocks outright, he’s using diagonal put spreads that collect premium every month while positioning for the inevitable decline.
His Boeing example shows how a $31 spread could cost just $6 after collecting monthly premium. That’s potential 10-to-1 returns if Boeing continues its descent to $180.
The same setup works across the entire list. Starbucks showing $8 monthly declines in a perfect stair-step pattern. Energy companies forced to sell inventory at terrible prices just to service debt.
When bankers won’t lend to companies with great stories, they definitely won’t lend to companies bleeding cash with declining quick ratios.
