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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Perspective who wrote (197177)	4/20/2009 8:02:08 PM
From: RockyBalboa	Read Replies (1) \| Respond to of 306849

Advanta ADVNA ADVNB - there´s a scathing article out, it does not sound very promising. The recent markt bounce was strong enough that also the dreck got bid up... marketwatch.com{5F3663F1-5F50-44B3-942F-82C2033C19F5}&siteid=yhoof CHUCK JAFFE Stupid Investment of the Week Commentary: Advanta's high-yield notes offer investors no advantage By Chuck Jaffe, MarketWatch Last update: 5:42 a.m. EDT April 17, 2009 Comments: 39 BOSTON (MarketWatch) -- Yield is the "bug light" of the investment world -- the attractant that draws flying critters out of the trees and bushes for a look-see. But investors pursuing yield can also follow that light to where they get zapped. For many investors, the brightest yield light being advertised right now comes in the form of investment notes from Advanta Corp., the grand-daddy of selling unsecured debt securities directly to the public. Investors who flock to these high-yield notes may find that the current conditions are just wrong enough so that they will get burned. .. The current risks are obvious when you consider Advanta's stock. The economy has not been kind to any financial services firm, and Advanta is no exception. The stock is down more than 10% this year, but it was off 80% in 2008 and 70% in 2007. Shares are currently in the $1 range, but this was a penny stock -- trading at less than a quarter per share -- in the very recent past. Morningstar Inc. gives Advanta an 'F' grade for financial health. "These are just junk bonds packaged for retail investors at yields that no high-yield manager would ever think of buying them at," said Jerry Paul, chief investment officer at Essential Investment Partners in Denver. "The retail investor always gets played for the sucker with this stuff. If they want high yield they should buy a good open or closed-end mutual fund and get the diversification, professional management and ready liquidity."