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

To: E_K_S who wrote (48942)	7/30/2012 2:42:00 PM
From: E_K_S	Read Replies (2) \| Respond to of 78729

Interesting price action on the SVU 8% Bonds - Is this priced for a BK? Supervalu 8% \| Maturity:2016 goo.gl Yield Yield to Maturity Not sure if this debt is priced as if there is a BK in the future. It is only selling 15.5% below par w/ a relative yield of 13.36%. If it stays steady and/or improves, I may begin to nibble at some of their common shares. I expect them to sell their logistics business which is worth at least $2.00/share. I would expect that any sale would include a long term supplier/warehouse logistic agreement to the parent. I was also wondering that the logistic unit might be spun off to shareholders and the rest of the company would go into a structured BK. This way, all those unfunded pension liabilities could be renegotiated. EKS