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


To: MCsweet who wrote (35455)9/26/2009 11:32:50 AM
From: Jurgis Bekepuris  Respond to of 78748
 
If notes are trading at 59% yield, I'd buy notes rather than common if I bought anything at all.



To: MCsweet who wrote (35455)9/26/2009 6:32:47 PM
From: Rawnoc  Respond to of 78748
 
The bond guys don't even remotely factor in the buyback so their opinion is completely irrelevant to me when it comes to ROIAK.

But speaking strictly on financials, bond guys have been screwing up left and right over the last year massively mispricing bonds and bankruptcy risk up and down the market. I wouldn't put too much blind faith in them.

That said, of course there's risk with ROIAK if things turn south and/or they cancel the buyback for some reason. But I like the risk/reward ratio. I think ROIAK will continue its mulit-bagger trend short term as they continue to make money and buy back hoards of shares in the open market. JMO.... looking for probably $2-4/share