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Strategies & Market Trends : A.I.M Users Group Bulletin Board -- Ignore unavailable to you. Want to Upgrade?

To: RFH who wrote (7338)	4/25/1999 9:16:00 AM
From: OldAIMGuy	Read Replies (1) \| Respond to of 18928

Hi Rob, You may have noted that the convertible bonds did their fair share of contributing to my overall success during the last 4 years. Even when the common stock dropped all the way back to about $3.50 a short while ago, the bonds held their higher value fairly well. Not only that, they were kind enough to kick out a semi-annual check for $750 to keep me from panic. As "growth stock" investors, many times we forget about the term "total return." There's many stocks with decent yields that won't be particularly exciting as AIM stocks, yet when we take yield plus AIM's trading with it make for quite acceptable total return and great safety. In the case of Empresas ICA, I chose the bonds for part of the total return and their volatile common stock for the AIM side of the equation. The combination made for better total return each year even when the common stock wasn't doing much good. This is why I scour the S&P Bond book once in a while for opportunities. With current interest rates as low as they are, Convertible Subordinated Debentures aren't as popular as they once were. However, sometimes the ones that are still out there dip to where they're attractive - especially if there's a bouncy common stock to go with them. Best regards, Tom