Recent content by terminator

Bloomberg shows the 10yr, 2.125% last trading at 106 6/32 for a YTM of 1.44% Bloomberg.com: Government Bonds

It is a business development company (BDC). Like REITs they are required to payout most of their earnings to shareholders. Under the Investment Company Act they are limited to 1:1 leverage. PSEC is one of the better BDC's, but they are also priced that way relative to their peers. They are...

Don't let J.P. influence you one iota either way. I bought his book and enjoyed reading it. I don't think he's dumb. But he has a pretty bad track record. (Doesn't everyone right now?) Skimming through an old m* dividend newsletter from Jan 08 I see his dividend building portfolio had BAC...

Just keep in mind that AAPL has about $30 per share in cash and no debt, so when you are evaluating it at $85 you're paying more like $55 for the business . . . which is about 10x earnings. I have no position in AAPL . . .

Yes, although GE's loan (well, preferred shares) is actually more expensive than 10% since they gave him the warrants for "free" and there is a termination fee if and when they decide to buy the preferreds back. So, either they are paying him 10% perpetually (which would be a really bad sign...

No, WEB loaned them money and received warrants to buy at something like $22. He has not bought any common yet (that has been disclosed anyway).

And approximately $100B of that $111B is intangible. So, some would note that is $10B of tangible equity with $550B in debt.

I know WEB likes it, but I look at it every few weeks and see $20B in debt and $2-3B in profit and I stop thinking about it. I know all the food processors and consumer product companies carry a fair amount of debt, but KFT is on the high end of the range for those sectors.

You should be giving Running_Man his due. He was entirely correct in his predictions on the banking sector and BAC in particular. I remember he was the one predicting a $12 price on BAC back when it was in the 40's and many posters thought he was nuts. Then again, BAC would have been much...

It's just a macro trend. All exchange traded debt issues have had significant price increases over the last week or two. All of the BBB-rated ETD I was buying from Oct-Dec that had current yields of 15-25% are now trading at 9-11% current yields. I looked at JSM but passed in light of SLM's...

To add one last thing to what clifp said, also note that market makers control the market in illiquid (especially pink sheet) securities. So, just because it shows someone buying at 2 cents and selling at 3 cents it doesn't mean you can get those prices. Often times the MM is doing the buying...

I assume you already have some GE too, so I guess I don't see why you would chose to buy more of it over the others. The good part of GE is its industrial operations and those are similar in profitability and diversity to UTX, ITW, MMM, EMR, etc. Those companies are selling just as cheaply and...

We all have opinions, but I'm curious why you would put your clients in GE instead of similarly cheap "industrial" companies like UTX, ITW and EMR (to name a few) that don't have the financial risk that GE does.

They have $6B in debt. $4B is long-term. Current assets > current iabilities by about $3.5B. Sitting on $2B in cash. Earns about $4B per year. Leverage and CP is not an issue for them. I'm not excited about 3M (i.e. it's one of my smaller investments), but it's rock solid because it's so...

I've used it since I was a little boy. First borrowed weekly from my dad's office, then the library and now on a discounted subscription as a Christmas gift. It's a great resource. You can find everything that's in it for free somewhere else (e.g. S&P reports from some online brokers, Yahoo...