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

To: Smiling Bob who wrote (207438)	6/18/2009 1:10:26 PM
From: Perspective	Read Replies (1) \| Respond to of 306849

Yeah, I saw that. Added a little more PIR short at the open. I thought I was going to get run over, but an interesting thing happened on the way to the cleaners: so far the news is getting sold. How many times can you post a profit by repurchasing your own junk bonds? I guess they could go out and buy in the rest of their debt, but I'm assuming they need some cash to work with. Personally, I can't imagine that PIR survives the downturn. I've walked in a couple of them within the past year, and I was literally the only person in the store both times. For me the question isn't if they go away, but when. I guess management could theoretically dismantle the business and still return some value to shareholders, but they still have a ton of inventory and lease liabilities. We'll see. This is a learning experience for me, finding out how companies that are against the ropes perform when they have enough cash to repurchase their own junk bonds. I certainly have a new buy-side theme for the next time I see companies repurchasing their own debt for pennies on the dollar. `BC