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Subject:  Re: Sears Date:  5/29/2013  7:53 AM
Author:  TMFHockeypop Number:  14685 of 25515

In the FWIW category I thought I would report that yesterday I did sell my Sears (SHLD) 10/2017 6+% bond at 95% of par after a little more than a year. For bigger lots it is trading even closer to par after being in the 65% to 80% to par range a year to 18 months ago. As I mentioned in this and other threads I thought it provided a little more degree of safety than the stock, as well as a nice dividend when I retired.

It is still "junkie" and I decided the roughly 8% yield to maturity was a tad too risky vs the reward. I frankly don't understand why it went this close to par. Besides, I used the profit to justify an expensive vacation. I profited at roughly 60% if you count the dividends in a tax deferred account, so I'm happy, and have some more dry powder to use.

I still own the more risky Radio Shack 2019 bond which has gone from roughly 65% of par to 80%. It has more upside, but also greater downside than SHLD. Folks still seem to be buying junk bonds and RSH is my last remaining. I'm looking carefully at its risk.

Thanks for all of your comments. So far bond buying was a successful experiment that was new for me.

RYR Home Fool
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