Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: rllee who wrote (51157)	3/22/2013 2:32:11 PM
From: E_K_S	Read Replies (1) \| Respond to of 78751

I have rllee - They are not as safe as holding the bonds. If stock goes BK ( or a planned BK) these preferreds would go to $0.00 along w/ the common shares. It's not worth the risk for a slightly higher yield. The bonds are not even that attractive as the nearest one out yo maturity is 2/2018 or five years. By that time if/when the Feds starts to increase rates, you may not be able to hold these to maturity. I would like to buy a bond at a 20% discount to PAR w/ a yield to maturity at 11% or higher and go out no more than three years. My plan is to hold these to maturity w/o getting hurt when the Fed begins to signal a raise in rates. Therefore, most if not all of the JCP bonds do not meet this criteria. I continue to use the FINRA database to see if there may be something else out there. I am tired earning 0.25% on my cash while I wait for this correction. It's been my experience that Mr. Market will move a lot higher over shooting the historic mean. I am not willing to chase stocks too. So now. looking at Bonds and some of the preferreds below PAR. EKS