The Motley Fool Discussion Boards
Investing/Strategies / Bonds & Fixed Income Investments
|Subject: Re: Suntech Pwr’s 3’s of ‘13||Date: 3/13/2013 3:23 PM|
|Author: globalist2013||Number: 34828 of 35527|
Some savvy bond trader likely snatched those up at $25-$35 and offered them today at $85. I bet they would have had more traction if they offered them at $95 instead of $85. $15 gain in two days makes them simply too good to be true - probably would actually get more suckers if it deal didn't seem so sweet.
Appended at the end of this post is T&S for the last three days. Nobody is buying at 85, nor will they. Some desk somewhere is just screwing around out of boredom. But I'd never before seen an ASK-BID spread so wide (85x26) when sales actually happening around 35.
Yeah, I got one of those notices about granting consent. But I didn't bother to reply. I'm one of the 40% who wants out this Friday. However, I'm probably one of the 100% that will take a haircut on the workout. It happens, and it happened because I was investing with my heart instead of my head.
I'd like to see the solar power industry to become commercially viable. But I also realized that the prospects are dim, and I kept my exposure small. As a fractional of my bond money, my exposure to Suntech's debt is a reasonable 0.76%. To the solar and battery industry generally (positions in the debt of Exide, MEMC, JA Solar, Sunpower, and Suntech), my total exposure is a moderate 2.2% of my bond money, on which I'm down a cap-gains basis by -13%. OTOH, on that other bond money parked in other industries, I'm up 11%. So the hit I'll take from whatever does happen with Suntech will be tolerable.
That's the investing game, right? If no losses, then also no wins. That's what those who try to be "safe" never understand. You can never know what's going to work and what isn't. I've got an equivalent amount of money in grocers as I do in Suntech, and there I'm up 19%. I've got an equivalent amount of money in the auto industry as I do in solar, and there I'm up 54%. Could my bet on SunTech have paid off? Sure. Could my bets on grocers and autos have failed ? Sure. That's why I bet widely and small.
|Copyright 1996-2015 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|