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

To: Sergio H who wrote (45787)	12/3/2011 2:48:33 PM
From: E_K_S	1 Recommendation Read Replies (2) \| Respond to of 78751

Hi Sergio - In the event of another Market meltdown, buying Debt for pennies on the dollar. Making your list. Lazarus's post reminded me that in the next market crash, there may be some value opportunities by buying discounted debt obligations in senior notes and/or preferred shares. In 2008/2009 I bought deep discounted REIT preferred stock (at one time yielding over 20%). After three years they all have come back from their single digit lows to where they now trade above $20.00/share (par was $25.00 when issued). They never missed a dividend payment either. I would not even consider any of DEX Media's discounted debt (even at $0.30 on the $1.00) but there out to be others that can be added to a "Value Buy" list when/if the opportunity presents its self. I would exclude all foreign Euro concentric paper. I might consider different REIT obligations and selected E&P company preferreds. Do you have any companies or sectors that might be worth investigating? I want paper that is collteralized by hard assets (real estate, Oil & NG etc) but will consider anything that provides a solid argument for value. I do know when the 2008 crash was on top of us, many of these debt issues were thinly traded and you had to be firm with your limit offers (otherwise they hit you with large spreads). There was about a 30 day window where you could buy all you wanted at very deep discounted prices (if you had the cash to do so!). If you sold something to free up cash, you usually took a huge loss as many of the stocks rebounded w/ the recovery too. Quantum Online w/ it's updated debt ratings info was quite helpful so I was not too afraid to pull the trigger in the eye of the market crash storm. quantumonline.com ---------------------------------------------------- Got any ideas on issues I should add to my list? Preferreds I plan to buy if they sell in the low teens on any crash "event" include: OFCpH - Corporate Office Properties Tru (OFC-PH) OFCpG - Corporate Office Properties Tru (OFC-PG) OFCpJ - Corporate Office Properties Tru (OFC-PJ) DFTpA - DuPont Fabros Technology Inc CU (DFT-PA) DFTpB - Dupont Fabros Technology, Inc. (DFT-PB) FRpJ - First Industrial Realty Trust, (FR-PJ) FRpK - First Industrial Realty Trust, (FR-PK) MHRpD - Magnum Hunter Resources Corpora (MHR-PD)(This one anywhere in the $20's) GSTpA - Gastar Exploration 8.625% Serie (GST-PA) (This one below $10.00/share would be a winner too). EKS

To: Sergio H who wrote (45787)	12/3/2011 6:41:54 PM
From: Lazarus	Read Replies (1) \| Respond to of 78751

Sergio, thanks for the feedback. i realize that the refinancing is an issue and probably the scariest thing about the stock but the way i see it WHAT CHOICE DO THE LENDERS HAVE? i could be wrong but i just dont see a lender not striking a deal AS LONG AS THE COMPANY CAN GENERATE THE CASH to make some sort of reasonable payment. everything is negotiable. someone made a comment that buying the commons at these levels is akin to purchasing a leap option (2014) betting on the company's ability to improve its balance sheet over time. sounds about right to me.