There is no justification for this premium. Unfortunately, this is a very crowded short, so it costs about 17% to borrow.
Longs are going to do poorly here when this thing mean reverts to a zero premium, shorts like me have done very poorly here and may not even do well if this thing gradually loses its premium, because of all the neg rebate they have to pay (it has nothing to do with the dividend). Shorting this thing has been like trying to win a war in Afghanistan.
The only big winner on PHK is brokerages whose retail investor clients are long the name in a margin account. They collect that 17%.
Since you will not be able to refute the substance of this e-mail, please feel free to bash me all you want. My results (as a whole, not just picking one of a thousand names I've been involved in) speak for themselves, and are readily in the public domain. You can say that white is black and black is white, but it doesn't make it true. In the end, results are results.
average junk coupon 8 per cent bonds selling at 80-90 of face value, yield can be stretched to 9-10 if bonds go to full value. leverage coming down quality going up on their portfolio i say 8c most can afford monthly. any agreement?