UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next
Author: Hawkwin Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35270  
Subject: Re: Suntech Pwr’s 3’s of ‘13 Date: 3/13/2013 1:21 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 5
OK, what are we missing here (I know the answer but will go through my thought process first).

I can see from the trade history that it traded at $32 earlier today and has been steadily going down over the last year - but even at $85, it matures in two days.

Admittedly I know nothing about this company or their risk of default but it appears you can buy it today at $85 and simply let it mature in two days at $100.

So let's do some research...

Well, that didn't take long. ;)

(Helps that I posted about this earlier today one another board.)

http://www.cnbc.com/id/100542201

WUXI, China, March 11, 2013 /PRNewswire/ -- Suntech Power Holdings Co., Ltd. (NYSE: STP), one of the world's largest producers of solar panels, today announced that it has signed a forbearance agreement with the holders of more than 60% of the Company's 3% Convertible Notes (the "Notes"). Under the forbearance agreement, in the event the Company does not make payments due under the Notes on March 15, 2013, the signing bondholders agree not to exercise their rights under the Notes and the related indenture until May 15, 2013, subject to certain market-standard early termination events.

---------

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.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next

Announcements

2013 Feste Award Voting Begins!
Who will win the 2013 Feste Award? Vote now for the Fool that most exemplifies the Fool Community mission of Learning Together!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Tax Strategies

TMFPMarti-Feeling Good
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement