There is no way you can lose with that trade. When they realize they are wasting money paying distributions and dividends to be used to buyback their debt with a 85 pct discount what do you think is going to happen ?. Management lives in LIMBO.. Wake up management ! Bonds should trade at 40 and stocks at 0,25 soon with no distribution. Thats is my bet. No other way to survive. I hope this helps. You still have time to be in the correct capital structure..
I was watching HOV because I was looking to buy the bonds. But after I saw is trading 3 times 2017 projected earnings+TAX credits+ reorganized, etc. Iam finding more upside in the stock. I placed an alarm in 1,75with volume. Will buy only on break out. can easely go back to 4,5 in the next months..
This morons will keep buying junky bonds of Puerto Rico @ 99,9876 price instead of buying back his own stock at 40% discount !! I cant believe it !! Maybe is because their fees are in relationship of the size of Portfolio??? I cant find any other explanation.. Maybe someone knows better.. OR maybe I will be calling IR soon to investigate..
Ufff Hard... But just dont fight it. We are in survival mode. I took the hit on some ARP and bought LINE 6.5 % 2021 @ 61. This is a B1 secured bond ( s&p B+). I will go with management on this one and the yield is incredible high.. cheers and be diversified !