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

To: E_K_S who wrote (48955)	3/21/2013 8:56:46 PM
From: E_K_S	Read Replies (3) \| Respond to of 78742

Update on SVU and the SVU 2016 8% Bonds SUPERVALU Inc. (SVU) -NYSE 4.68 0.49(11.69%) 4:01PM EDT Supervalue 5/2016 8% $1,000 Par Bonds goo.gl Qsip: 868536AT0 Price As of 7/21/2012 ( See this post where I reference the possible Value Opportunity) Last price: $863.30 per $1,000 Note. Bonds mature: 5/1/2016 Semiannual payments: Nov/May Yield to maturity 12.5% Supervalu completes $3.3 billion sale of 5 grocery chains Supervalu, the parent company of St. Louis-based supermarket chains Shop ‘N Save and Save-A-Lot, completed the $3.3 billion sale of five other grocery chains to an investor group led by Cerberus Capital Management, the company said Thursday. With the completion of the SVU sale, the SVU 2016 8% Bonds closed near a 52wk high a $105.75 per $1,000 Bond (yield 5.95%). I originally bought these bonds 7/2012 for $863.00 per $1000.00 bond. Based on today's closing price the return on this investment is 23% and I received one semi-annual dividend payment. The value play is probably over for this play but I will continue to hold the position and use this as a source of funds for new "Buys" if/when we get this 10% correction. It's better than holding cash. The position was only a 3% position in the portfolio so next time I should make it a bit bigger play. It was a low risk/high return value play. JCP may fit in this type of play as they own quite a bit of real estate similar to SVU. I will have to investigate weather they have any junk bonds selling at a discount. EKS