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

To: Spekulatius who wrote (56278)	11/25/2015 6:35:05 PM
From: E_K_S	Read Replies (1) \| Respond to of 78705

I like the steel idea and have been looking at the common shares of several companies. GGB and X came up on my list but I excluded both for various reasons. Using the bonds you get exposure to the industry w/ less risk especially if you plan to hold these to maturity. I want to build up my income portfolio w/o going into anymore MLP's (in fact would like to eventually reduce my MLP exposure). It seems like this could fit in well w/ that premise. Have you looked at any other short term high yield 'value' bonds in other sectors like Solar/renewable energy and/or distressed autos like in VW? There is a lot of capital floating around from all the QE which I believe has impacted the bond market, specifically corporate bonds (now priced at unreasonably low levels to the original PAR issue). If the Fed does raise rates very slowly over years not months, there could be some value buys. I think you are in the right price range (eg $0.70/100 or higher) as that is the 'sweet spot' for pricing w/ a good risk/reward for payoff at PAR. My purchase of SUV corporate bonds (Super Value) was in that price range w/ similar maturities. YTM was around 25% w/ 3 years. 50% of my bonds got called early and paid at PAR and the other 50% get paid off at PAR in May 2016. EKS

To: Spekulatius who wrote (56278)	12/1/2015 11:00:35 AM
From: mopgcw	Read Replies (1) \| Respond to of 78705

I have had an eye on the X bonds as well, but have not pulled the trigger. I thought the same thing for Arch coal, Cliffs, Nueverra, Swift....calling the bottom tough at the moment. but did buy some Atwood bonds, go figure... and I did add some PAGP in my taxable account, so agree with you, interesting time for some select MLP. best, Geo

To: Spekulatius who wrote (56278)	12/2/2015 8:24:35 AM
From: Grommit	Read Replies (1) \| Respond to of 78705

Bonds. The short term X bonds are tempting and I spent some time looking at them. I also just reviewed the postings by EKS and Jurgis on SFY bonds over the past year. Sorry for the outcome, but that is interesting reading. X seems safer, but that read convinced me not to play the bond game. I own a few energy stocks (SPWR, NEE, GAS, VLO-small ) but avoided oil this year. YTD results mediocre: me +7% S&P +2% NYSE (3%)