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Biological

Biological
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  • Peabody Energy: A Not-So-Surprising Warning [View article]
    Agree; BTU can defer interest (by giving more shares) on the CBs (which are indeed junior); the conversion price is SO high relative to current BTU price to render the conversion meaningless. As the interest can be deferred, I would avoid them altogether. The second lies is where money should be made if (1) they pay at least three years of interest in full; and (2) any restructuring yields more than 30 cents (which would seem likely). If somehow they survive and pay all bonds in full (which they can by issuing massive new equity at discount to market and using same to buy bonds in secondary market and cancelling debt), you are looking at 40% YTM as a creditor.
    Jul 3, 2015. 10:56 AM | 2 Likes Like |Link to Comment
  • Peabody Energy: A Not-So-Surprising Warning [View article]
    Forget the stock; buy the bonds.
    Jul 3, 2015. 10:11 AM | 1 Like Like |Link to Comment
  • Peabody Energy: EPA Rules, Lower Guidance And Fears Of Bankruptcy [View article]
    For anyone who thinks BTU will survive, I suggest the 2020 6.5% bonds now selling at 31 cents which gives at whopping 40.94% YTM.

    My thesis is that they will pay interest for at least 3 years (65/310 = 21%). If that is the case, you collect 65 x 3 = 195 per 310 investment reducing your "cost" to 115.

    There is NO WAY these bonds are worth less than 115 (11.5 cents) in a BK situation notwithstanding them being second liens (only bank credit facilities are senior).

    (disclosure: I bought at average price low 50's over last two months). Still have room to average down a bity more by buying in the 30's.

    I do not own shares.
    Jul 2, 2015. 09:10 PM | 4 Likes Like |Link to Comment
  • Peabody Energy plunges again, now -20% this week [View news story]
    This is a tragedy worthy of Shakespeare!
    Jul 2, 2015. 01:20 AM | 2 Likes Like |Link to Comment
  • MLP Weekly Intelligence: Catalyst Wanted [View article]
    Hi. Apologies; can you repeat last sentence? GLOP or GLOG should be the higher growth vehicle? Thanks a bunch (and for article).
    Jun 30, 2015. 09:31 AM | Likes Like |Link to Comment
  • MLP Weekly Intelligence: Catalyst Wanted [View article]
    Are you kidding me? The GLOP acquisition was accretive and will lead to about a $1.91 p.a. dividend (about 8.3% yield), according to the company. Those who liked GLOP before the offering can not but like GLOP more now! GLOP at 23 is a buying opportunity for the yield and growth. I own both GLOG and GLOP to capture dividends and growth.
    Jun 30, 2015. 12:20 AM | 2 Likes Like |Link to Comment
  • Peabody Energy plunges again, now -20% this week [View news story]
    Cupid is 704549AH7. There is also the 2018 that trades 5 cents higher. I think that is the way to play BTU.
    Jun 28, 2015. 10:56 AM | 1 Like Like |Link to Comment
  • Alliance Resource Partners: Answering Questions About Its Debt And Distribution [View article]
    ARLP is being tossed about like NRP was; it cut div 75% and is still dropping. Not that ARLP has anything to do with NRP but who, at nay money management firm, wants to try to explain to his investment committee the difference. "Jack; its cola, sorry, coal - sell!"
    Jun 28, 2015. 09:25 AM | Likes Like |Link to Comment
  • Don't Buy Diamonds [View article]
    What? No has watched this most seminal of all diamond movies?
    Jun 28, 2015. 09:22 AM | Likes Like |Link to Comment
  • Don't Buy Diamonds [View article]
    "Is it safe?"

    http://tinyurl.com/la5jlv
    Jun 27, 2015. 06:14 PM | Likes Like |Link to Comment
  • BDCL Still Attractive With A 19.2% Yield [View article]
    I like this board; bunch of aggressive yield &*%#$@$. Good luck to us.
    Jun 27, 2015. 03:47 AM | 1 Like Like |Link to Comment
  • Peabody Energy plunges again, now -20% this week [View news story]
    BTU bonds have fallen over same time period. The 6.5% 2020 is at about 37 cents which is quite low given no liquidity issues for some time.
    Jun 26, 2015. 07:54 PM | 1 Like Like |Link to Comment
  • Don't Buy Diamonds [View article]
    Diamonds are hugely helpful in money laundering.
    Jun 26, 2015. 10:23 AM | Likes Like |Link to Comment
  • Uber Has Lost The Taxi Battle In NYC [View article]
    Uber in France. Ouch.

    http://bloom.bg/1LyTAkE
    Jun 26, 2015. 03:36 AM | Likes Like |Link to Comment
  • Greece... [View article]
    Do you see a default meaning an exit? Why can't Greece become Illinois or Puerto Rico - busted credit due to bad local governance (pensions, out of control spending) but still a dollar economy? Thanks.
    Jun 26, 2015. 03:29 AM | 1 Like Like |Link to Comment
COMMENTS STATS
609 Comments
537 Likes