GREY:WFREF - Post by User
Comment by
wilwalon Apr 12, 2016 5:32pm
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Post# 24758872
RE:RE:RE:RE:RE:LRE Debentures "Interest flat"
RE:RE:RE:RE:RE:LRE Debentures "Interest flat" deisman and Bookends are correct. Buy the debs today, pay no accrued interest and get all the interest going back to last August. Anybody who sold after the default date get nothing even if they held the debs during the August-January period.
The returns on the debs are much better than the stock upon closing.
Stock 7.8% gain
Debs 14% gain of which about half is capital gain and half is interest income.
A lot of investors are missing out on this because they aren't aware of the big interest payout to the final holders of the debs. By the looks of it, investors are thinking they are getting only $75 upon closing plus interest from January but they actually get an additional 3.2% on top of that.
Debs are a sceaming buy compared to the stock. Plus, if the closing stretches out a few extra weeks, they pay interest while they sit there and the stock does not.