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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Jurgis Bekepuris who wrote (23514)	3/7/2006 12:14:23 PM
From: E_K_S	Respond to of 78958

Here is an interesting interview with Marty Whitman by Smart Money magazine. smartmoney.com From the article:"...SM: You're famous for your interest in distressed investing. How do you evaluate debt? MW: We're interested in how the company is going to fare in a reorganization. When we buy Aquila at a 25% yield-to-maturity, we don't think it's ever going to miss a payment. When we buy Kmart, we know we're going to get the common stock of the company [when it reissues] and we're going to participate in the reorganization. So we either buy them when we're going to participate in the reorganization at a discount from workout value, or where we think they'll be reinstated. We buy them based on yields-to-maturity or yield to an improved credit rating. ..." Thank's for the heads up on Marty's investment experience. EKS