Just so we are clear, I like their products, I hold the IDS, I've traded the thing.
And now what?
I bought it in the beginning for the income. I hoped for growth - my original cost is near, but below the current price (timing is everything).
I'll hang on to the remaining notes, even if I COULD sell them.
But the common? IDUNNO.
They have returned about 42% of my original cost as return of capital (with more expected this year - my guess). Except for the ROC, considering the trouble over the past 2 years, it has held up pretty well. The yield is OK, MAYBE the growth prospects are too.
So, the question?
As an income investor, I can presently get a tax free muni yield near or equal to the BGS taxable yield. Should I hold? Why should I hold?
Your 9% tax-free muni yield is either using leverage (a la PMF), or is a very risky revenue bond issue (i.e. not backed by the govt). Either way, there is going to be additional risk involved vs. owning straight GO bonds, which *are* safe but which also yield about half of BGS.
My view is that B&G stock should do relatively OK even if we have a double-dip recession, as long as we don't face a credit crunch like we just had Sept-March. This is a food stock so should be less economically sensitive than the market as a whole. And with the work they've done on their balance sheet recently, its a stronger company than it was a year ago pre-crash.
I know you said you are an income investor, but a bond isn't going to give you the opportunity for capital appreciation that you'll get here. I sort of view BGS as a bond that also has modest opportunity for capital appreciation.