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Non-Tech : Boston Market (BOSTQ)

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To: John Liu who wrote (1253)5/28/1998 12:05:00 AM
From: Sr K  Read Replies (1) of 1567
 
The 3 issues are BOSTL, BOSTG, and BOSTH. They are often not very liquid and more than 20 BOSTH can move the market. The volume shown on SI's stock feed is wrong. The bid/asked spreads are wider than on comparably priced stock. When you buy you pay the accrued interest and when you sell you get the accrued interest (unless they start to trade flat in the interim). Buying discount bonds is not for novices IMO. There are different tax consequences than a cap gain if it appreciates. You have to recognize the mathematical accretion of yield-to-maturity as interest. As written in 6/1/98 Forbes, the BOSTL may be the best deal now because they are putable on 6/15/2000 at 30 cents on the dollar payable at the company's option in BOST common. That will dilute the current common holders.
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