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Subject:  Cohen's Recs Date:  4/22/2011  11:54 PM
Author:  LONGREITS Number:  32740 of 36852

A great collection of her articles on her website,too.....

Buy callable, high-yield, short-duration bonds like Clean Harbors. This company transports, stores and disposes of hazardous materials. It is a leader in its market. With the economy growing, Clean Harbors' various business lines will benefit.

Clean Harbors' fourth-quarter revenues were up 20% to $417.1 million. Income from operations increased 54% to $43 million. The quarter was as good as all of 2010, and as a result full-year income from operations more than doubled. At year-end the company had cash and securities of $305 million.

I like CLEAN HARBORS' 7.625% DUE AUG. 15, 2016 CALLABLE IN 2012 @ 103.813 (CUSIP: 184496AF4). These bonds, rated BB, are priced at 106.5 to yield 5.33% to the 2012 worst call and 6.18% to maturity. Duration is 1.27 years to 2012 and 4.35 years to maturity.

If you haven't noticed the ads for cruises lately, you must be reading only the business and sports sections. The cruise business has bounced back despite higher energy prices. Royal Caribbean Cruises ( RCL - news - people ) had a solid 2010, and its new ships are an attraction to cruisers that will continue to drive sales and profits. Bookings are strong, and its fuel hedging greatly helps smooth out the energy-price-hike sting. The company is already over 50% booked for 2011 cruises.

Buy ROYAL CARIBBEAN 6.875% DUE DEC. 1, 2013 (CUSIP: 780153AP7), rated BB. The issue size is $350 million. Pay 107.15 for a 4% yield to maturity. Bonds are not callable and have a duration of 2.38 years.

As corporate America continues to regain its mojo, so does Arrow Electronics ( ARW - news - people ). This company is in the plain-Jane space of global electronics distribution. It has grown both internally and through acquisitions. The products it distributes include computer systems, peripherals, software and storage products, all worldwide. The business may not be sexy, but it's dependable.

Arrow leads the market in components and enterprise computing distribution. With around 2.6 times leverage (including leases) and a comfortable 7.7 times interest coverage, this bond issue represents a good value in a low-yield environment.
Buy ARROW ELECTRONICS 3.375% DUE NOV. 1, 2015 (CUSIP: 04273WAA9). These bonds are not callable. Pay 99 for a 3.61% yield to
maturity. Duration is 4.13 years. It's hard to swallow, but 3% is truly the new 5% when it comes to corporate bonds with short durations.
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