GREY:MLKKF - Post by User
Post by
24~Karaton Jan 21, 2008 3:28pm
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Post# 14237387
Market Internals
Market Internals One of the most trustworthy measures of a company’s merit is the standing of its debt issuances. (For proof, look no further than the justifiable massacre that has been dealt to all of the subprime thrash.)
ML outstanding Notes (shown at top, below) are a rock of stability. But what’s even more interesting than that, is to compare the current standing of those Notes, to where they stood last August, at a time when the general equities market was also under stress. ML’s Notes took a dip back then (and a relatively shallow one, at that, compared to practically any other similar financial instrument.)
Fast forward to the current time frame. While ML’s common shares (shown at bottom, below) have dipped recently, its Notes have not budged.
This signifies two things: The selling that is currently taking place is being done by weak hands (people who are in trouble elsewhere with their investments, and need the money), and secondly, ML will be in an enviable position to pursue acquisitions, if they so choose, at fire sale prices.
