BTU may or may not be going bankrupt. The next few weeks are critical..(bond payment due, asset sale news expected).
BTU has a 40% SHORT position. The stock could go to $20 and still not be much improvement in their future.
If you want to be long buy the bonds.
I don't know cccbondguy but I will say something in his defense. Bond Guys are usually more sophisticated than "trader guys". Bond guys usually end up with more money (although it is true than many bond guys start out with something). I'm an old guy with many bonds, lots of money, and many wealthy friends. Few got wealthy trading although a couple made small fortunes in futures "trading". I also trade. For fun, I guess. Of course bonds are to buy and hold. I have never sold a bond and never regretted it. OK, now blast me.
Gosh, no, Jack. I didn't check out ANR. Wow, do you mean I could lose money on my bonds? I never thought of that. Thanks for the tip. Sorry, I was just putting in my two cents worth and taking that long shot that I get 365% interest each year until BTU defaults.
You are correct on the accrued. If BTU defaults soon I lose that money. If BTU lasts six months I double. If, if, if.....of course the bonds are a long shot but if they survive that's a lot of interest for a lot of years (my money was mostly made in holding long bonds).
Your comment about "why doesn't BTU just buy the bonds".....well if they started the price would go up very fast...it's thin out there in 2066.
Of course very soon BTU will make an offer for the bonds through the 2026. If this works, then my 2066 bonds will be much more valuable. I also own "too many" of the 2026s.
I paid $1 recently for the 2066 bonds. Tried to buy more, got a deal at $0.45 but the dealer called back and said they wanted more. Here's the story....anybody that has any inclination to be LONG the stock would be much better off in the bonds. (most people don't know what a bond is). If the stock survives at all I make a fortune from the bonds.