OK if you want to own JBLU stock. Callable in two months for Jet Blue stock, that is if I read it correctly. Anyone who wants to check it out, can go to www.quantumonline.com and click on stock list-Special Investment Products. Not for this guy.
From that website. I would agree to stay away. Sell now for a small gain.
SECURITY DESCRIPTION: Merrill Lynch & Co. Inc., 9% Callable STock Return Income DEbt Securities (Callable STRIDES), issued at $25 per unit, due 5/22/2006 and linked to the price of JetBlue Airways Corp. (Nasdaq: JBLU) common stock. Distributions of 9% ($2.25) per annum are paid quarterly on 2/22, 5/22, 8/22 & 11/22 to holders of record on 2/7, 5/7, 8/7 & 11/7 respectively. At maturity, if not called prior to the maturity date, the STRIDES will deliver the number of shares of JetBlue Airways Corp. common stock equal to the then current share multiplier for each STRIDES. The initial share multiplier is 0.96487843 ($25 divided by the $25.91 market price as of 5/17/2004). The STRIDES are callable at Merrill Lynch's option on or after 5/23/2005. If called, the payment will be in cash to provide a yield to call, including interest payments, of 17% per year. If the price of JetBlue Airways Corp. common stock falls below $1.00 per share, the STRIDES will be redeemed by delivery of the number of shares of JetBlue Airways Corp. common stock equal to the then current share multiplier for each STRIDES plus a present value amount. The STRIDES are senior unsecured debt securities of Merrill Lynch & Co. Inc. and rank equally with all other unsecured and unsubordinated debt of Merrill Lynch. See the IPO Prospectus for further information on the STRIDES by clicking on the �Link to IPO Prospectus� provided below.
These are callable strides issued by Jet Blue at 10% issued at $25. When are the callable? At how much are they callable ($25?) How is Jet Blue doing? Are the strides secured? Will oil come down or go to $100 a barrell? Right now this yields about 15.5%. That tells me it is pretty risky. Maybe a good risk, but still risky.