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No. of Recommendations: 1
I'm 71+ and all my life people have telling me things
are IMPOSSIBLE. For last 17 years I have been doing the
impossible. Scince 1982 I have been investing in
discounted corporate bonds. High risk? Yes! if one
considers Chrysler, International Harvester (Navistar),
Stone Container etc.etc. were really high risk. I was
an executive in the Pulp/Paper/Forest Products industry
and much of my investments were in companies I knew.
If you're going to invest with the idea you need regular interest income, to supplement social security
without drawing down your capital, then bonds are the
way to go. To find suitable bonds I do a great deal of
research; you have got to do your homework to minimise
risk! These days unfortunately good discounted bonds
are hard to come by. Here's my choice-Wickes Co.(WIKS)
Senior Subordinated Notes, Coupon 11 5/8% of 2003
quoted at present around $85 (ie.$850 per $1000 bond).
Because of the discounted price the annual yield is
13.65%, payable twice a year. In addition to the income
when the bond matures in 12/15/03 you get face value ie
a capital gain of $150 per bond! On 12/31/99 Moody's,
which is the principal bond rating outfit, raised
Wickes from neutral to POSITIVE rating. Good Investing!
-- Matthew
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