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

To: E_K_S who wrote (56241)	11/18/2015 4:20:34 PM
From: deeno	Respond to of 79146

Maybe tough to get the borrow on SUNE.

To: E_K_S who wrote (56241)	11/20/2015 1:23:22 AM
From: Jurgis Bekepuris	Respond to of 79146

Apparently SUNE straight bonds are trading at $39: finra-markets.morningstar.com Not sure if inventory is available. All SUNE plays are in too hard pile for me. Unless someone can explain simply why any of the parts are worth investing into. ;)

To: E_K_S who wrote (56241)	11/20/2015 7:27:38 AM
From: Spekulatius	1 Recommendation Recommended By E_K_S Respond to of 79146

I am not sure about the value of SUNE's assets. It seems to me that they depend on cheap wholesale financing to keep their business going. If they can't raise debt to replace their warehouse loans, they will basically have to cease new business activity and go in runoff (best case) or default right away because cash flowing out the door exceeds cash coming in and they can't reduce the cash outflows quick enough (more likely). Thiis is all speculation on my part, I have not done an deep dive into this. What I do know is that when bonds start to trade below 50c on the dollar, it's a waste of time to look at buying the equity, since the bonds are senior and offering equity like returns at this point, with lower risk and better recovery.

To: E_K_S who wrote (56241)	12/1/2015 3:40:17 PM
From: Jurgis Bekepuris	Read Replies (3) \| Respond to of 79146

SFY bonds - 12/1 interest came through. It's in my Fido account. Two interest payments almost close to current bond price haha. I guess now they have another 6 months breather space unless there's some other payments coming up or they don't have enough cash for ops. I looked at CHK numbers and decided not to buy more bonds. At this point I think CHK is quite risky. I'd rather go with X (US steel) bonds. Not seeing great bond values in oil space. Have some DNR bonds, but they are not cheap enough to add.