Thursday, February 18, 2016

Noble Energy Bond more than 17% yield


65504LAC1 - Noble Hldg Intl Ltd 4.9% 08/01/2020 Discount Bond.

I am doubling down on this high yield, also known as junk, bond.   When I first picked this bond and bought it the price was in the $90's.   Interest coverage was over 9.  See this link:  http://www.themoneymadam.com/2015/02/noble-ne-bond-at-discount.html

Clearly, things have changed in the oil and gas patch with Noble's (symbol NE) earnings taking quite a hit.  Yet, their interest coverage ratio is over 2.

Most recent quarterly results show an increase in cash and a positive spin on their future by their management.  

I paid $60.51 for this bond.  YTM is 18%.  Maturity is 8/1/2020. 

To review data about this bond, please click on the link below.

http://finra-markets.morningstar.com/BondCenter/BondDetail.jsp?ticker=C527375&symbol=NE.AC

Noble Holding, (NE) fundamentals

The table below illustrates the fundamentals of the underling security.   This is a high risk trade and all should be forewarned of the risks.  Trade price on 2/18/2016 $7.99.  EPS = $.26 with Dividends = $.60.  D/E ratio is .61 and interest coverage ratio is 2.29.




Good luck,

M* TheMoneyMadam

Disclosure:  Long this bond