Post by
8675309Jenny on Dec 12, 2013 12:58pm
Convertible debenture is a SCREAMING buy
trading at 35c on the dollar. you rank ahead of all the shareholders. company has some value, they will get it all before shareholders get any. if it recovers you get a triple, + interest. if it fails, you will likely get at least 35c on the dollar. can't lose
Comment by
smithgee on Dec 12, 2013 1:51pm
I agree ... picked up $5K worth at $36, costing $1800
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Comment by
8675309Jenny on Dec 12, 2013 2:31pm
this is a great buy. You will be getting 17% a year in interest, and have far more protection than the common shareholders, upside about the same,or better. the biggest issue is the issue size, which is 172.5m dollars, which is large. 2 1/2 years to maturity. much better bet than the common
Comment by
ShatnersRug on Dec 12, 2013 2:37pm
Jennifer, then perhaps you should buy as many as you can?
Comment by
8675309Jenny on Dec 12, 2013 2:51pm
obviously, that has been done, yesterday. but facts are the facts, and this is a better buy. Not long ago Superior plus debentures were trading at .65 and .70 on the dollar, the stock was at 6-7. all those debentures are trading at over 100 today. miss an interest payment, and debenture holders and debt holders own the company.
Comment by
Jzkbbi on Dec 12, 2013 2:40pm
i like this play. Far more protection as you say. There is plenty of reason to believe that these will not be worthless even if STP fails. Do we think the McKay is a total loss? Or do we merely think that STP will run out of time/cash getting it going? Still risky, but there is much more solid ground to stay standing.