UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next
Author: TMFGebinr Big funky green star, 20000 posts Top Recommended Fools Old School Fool Supernova Phoenix 1
Mission Team Member CAPS All Star SC1 Red Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 1282  
Subject: Selling SVU position Date: 8/1/2012 12:41 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 6
Hi everyone,

Getting out of this one. Every bond longer than 2013 remains at higher yields (lower prices), in some cases much higher yields. That's half of my original thesis gone (that bond investors were not pricing the company for bankruptcy). Maybe they're not pricing it for bankruptcy, but they're pricing a lot more risk that they won't get paid even for two or five year bonds.

The other half of the thesis (turnaround situation) has also broken apart. Heckert had a plan, was executing it, got hurt by stuff outside his control, and his reward was to be fired and replaced by the chairman who so far hasn't said much more than reiterating Heckert's plan and "look how good I am" kind of stuff.

More details here, along with a big shout out to CaptainHaiku (though I might have said "chicken farm" when I meant "vegetable farm" right at the end: http://www.fool.com/investing/general/2012/07/31/when-your-t...

Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next


Foolanthropy 2015!
Fistula Foundation: A World of Good!
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.
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 Glassdoor #1 Company to Work For 2015! 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.