Why did you post this message on the PIS message board 4 days ago?
"SELL NOW at a profit. Market has completely changed and it is unsafe to hold this long term"
But I also think if you look, we have done a bunch of things to stabilize the capital structure and put ourselves in a position to consider things like debt reduction which we’ve done and share repurchase.
One of the things that we obviously went out of our way to do is to try and address the negative arbitrage on that debt that we have outstanding the $400 million that we are tendering for out of the $800 million maturity in 2013.
I would say once that’s done, as that’s done, even if it’s not done, this capital structure is very solid and the opportunity to do either more share repurchase, more just debt pay down
BUY PYL at 18.50. The debt is going to get called at 25 soon!
Everyone here is working awfully hard to convince the other guy of what is best to do. Why?
Is it so important to you to convince others to do what you are doing? Again, why? Who really cares?
went from under 23 to 24.30 yesterday, up pretty much everyday.
I own so much of it, pretty happy. Hope at least one other person got on board.
It's going much higher, probably close to 26 before the next ex div in july.
if you think that it's yielding 11.34% you are very mistaken, the reason is JNK owns many bonds that trade well above par and that will have to go down to par eventually. So you have to take into account a capital loss to compute the real JNK yield. That you unfortunately probably never considered and you might not understand it at all.
The difference is negligible, especially over a 6 months period which is what i'm looking at for PIS as explained there:
Here i'm looking for PIS to trade at about 26 right before next exdate, which is end of july. Profit will be 3 dollars a share which is 3/23 = 13% over 4 months which is about 63% return a year. Let's talk about it again in july and compare my total return with yours on JNK, from april 1 to july 31 shall we?
PIS won't interest equity investors, however it might interest some people who buy preferreds and bonds ETFs.
Yes I do. You will get more value through compounding of reinvested dividends the more frequently it pays out. This is why credit card companies calculate it per day. I would be thrilled if JNK paid daily.
People look to bonds as a source for income. Generally the only thing bonds gives you is the dividend payment and they are supposed to stay at a constant price
Getting that payment only twice a year is counter to the reason for buying into a bond.
Obviously some, like yourself, look for a high dividend and rising price for a bond but thats not common. When people want that they look to equities which is really where you should be pumping this.