UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev | Next
Author: altstrat91 One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35400  
Subject: Patriot Coal Bonds - recovery rating 3 Date: 7/5/2012 1:16 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
so this is interesting.

cusip 70336TAC8
redemtpion 4/30/2018
coupon 8.25
annual yield 30%+


according to a recent analysis by S&P, these bonds have a recovery rating of 3. the bonds are currently trading potentially below this range. often with commodities related companies, their analysis can be on the more conservative side.

these bonds tanked straight down from $85 to upper $38 and now while the stock price has surged nearly 300% on an obvious squeeze, the bonds are firming a tad at $42.

i have not come across an opportunity like this where the recovery rating analysis was above what the bonds are trading for in the open market. do your own DD and just wanted to pass this case along.
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev | Next

Announcements

Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
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:
Macro Economics

Looking at Currency Ratios
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