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Subject:  Re: Sears Date:  5/29/2013  9:10 PM
Author:  jackcrow Number:  14691 of 25496


But everyone is so euphoric about business right now I'll wait. Not very relevant.

Play YOUR hand.

What is yield to maturity? What is yield to worst? What are the odds of default?

Is there a better risk/reward opportunity?

A general rise in business can bypass Radio Shack, improve its balance sheet or turn Radio Shack into a nice equity play. The only question that matters with the debt is whether it will pay all remaining coupons and return face value to you. Radio Shack can do the ugly limp along as long as it continues to service the debt you hold. If others have bid it up they are either lemmings or someone sees improvement, two suitable candidates to sell to if you have gotten your value out of the deal.

Value investing principles apply to bonds and stocks. When either is overvalued we have the choice of riding the price back down to its IV or selling and taking our profits. What is the end game? I've held onto dividend payers with strong long term outlooks (IMO) and I've taken the cash in hand when a stock has become overvalued.

I'll chew some numbers on Radio Shack later tonight or tomorrow.

I'm not arguing for a sale, only that you consider the instrument in your hand for what it is and make your decision based on that understanding.

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