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Strategies & Market Trends : Value Investing

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To: Jurgis Bekepuris who wrote (56240)	11/18/2015 4:12:43 PM
From: E_K_S	Read Replies (4) of 79137

Re: SFY They have an interest payment 12/1 so the company may say something before then. I looked at their last 10Q and they have enough FCF to make the interest payment and operate. They just can not meet their depletion allowance expense but that's a book entry only. ---------------------------------------- You might also want to look at the SUNE perpetual preferred that is a $1000 PAR convertible preferred (56 shares of common SUNE). This has crashed because of the debt load that SUNE has. Last price for the $10000 preferred . . .$217.50/share. SunEdison, 6.75% Series A Cumulative Perpetual Convertible Preferred Stock Ticker Symbol: SDSNP CUSIP: 86732Y208 Exchange: OTOTC Cumulative distributions of 6.75% per annum ($67.50 per annum or $16.875 per quarter) will be paid quarterly on 3/1, 6/1, 9/1 & 12/1 to holders of record on the record date that will be 2/15, 5/15, 8/15 & 11/15 respectively (NOTE: the ex-dividend date is at least 2 business days prior to the record date). If a fundamental change occurs at any time, holders will have the right to convert their shares of convertible preferred stock into shares of common stock at the fundamental change conversion rate (see prospectus for further information). . . . The preferred shares are convertible any time at the holder's option into 56.7666 common shares of SunEdison, Inc. (NYSE: SUNE) Link to the prospectus of the convertible preferred --------------------------------- The value strategy is to buy the perpetual convertible preferred at $217.00/share or lower. Collect the quarterly dividend and if/when the common shares are at/above your convertible price (about $3.85/share), sell short the common to cover your initial buy in cost. Hold both positions and collect the dividend 31% yield. No position but will be buying a few shares to implement the strategy at/below $217.00/share. EKS

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