The Motley Fool Discussion Boards

Previous Page

Investment Analysis Clubs / Value Hounds


Subject:  Sears Date:  12/20/2011  8:44 AM
Author:  hockeypop Number:  8667 of 25771

You opened the door to bond discussions. Since I read the following thread on "Falling Knives" I've been intrigued by the Sears (SHLD) bonds.

I don't see any compelling reason to buy the stock even though it is 63% of BV
The chart:

But the bonds at 11.5% to 12.5% Yield to Maturity look very compelling. Particularly the 2017 seems to have a high risk/reward factor.

The YTM has gone down in the last week. With a rating of B+ but a debt to asset ratio of 17%,being first in line if anything disasterous happens seems to be reasonable. That's a nice return for five years.

It would be nice to see how they do during the Christmas season. Your thoughts?

Copyright 1996-2021 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us