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Author: TMFGebinr Big gold star, 5000 posts Old School Fool Supernova Phoenix 1
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Subject: Selling SVU position Date: 8/1/2012 12:41 PM
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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...

Cheers,
Jim
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