written by reader Porter Stansberry Credit opportunities

By raypnc, November 19, 2015

2016: The Largest
LEGAL Transfer of
Wealth in U.S. History
His latest pitch for buying distressed bond debt. Is this a good idea or not?
Thanks
R

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Travis Johnson, Stock Gumshoe
November 19, 2015 11:20 am

I skimmed that pitch, and he’s mostly saying that he expects a distressed debt crash and then it will be a good idea and there will be lots of opportunities. He had a similar junk bond advisory before, helmed by Mike Williams I think, that did OK with some bonds (like Rite Aid) but also, I think, had a couple bankruptcies — always important to diversify. He hasn’t pitched any specific bonds yet, though presumably their first recommendations might be in energy or materials where the huge washouts of junk bonds have hit so far if they’re waiting for a real crash that brings down stronger bonds.

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T1 Texas
Irregular
November 19, 2015 4:08 pm

Stansberry’s previous distressed bond newsletter was called True Income. If you want to read the recommendations made in that previous publication, go to the main page on the Stansberry Research website and click on the link near the bottom of the page called “General Archive.” You should then be able to click on the True Income link to read all the past issues. I believe the General Archive is a collection of all the publications that are no longer being published and is open for anyone to read.

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invest_satx
Irregular
November 23, 2015 9:38 pm

I just got Stansberry’s Credit Opportunities November 2015 letter. He’s recommending Natural Resource Partners NRP, with a bond due in 2018, trading at $75 now (meaning $750). He suggests creating a “synthetic convertible bond” by also buying some common stock, now trading at $1.70 a share. NRP doesn’t do the coal mining, it leases coal reserves to mine operators in exchange for royalty payments. Everything Stansberry says sounds good. Could I have a second opinion?

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John Gault
Guest
John Gault
April 2, 2016 4:16 pm
Reply to  invest_satx

Did that recommendation work out for you?

Invest_satx
Irregular
April 3, 2016 10:44 pm
Reply to  John Gault

Didn’t try it.

Brian
Guest
Brian
August 24, 2016 2:58 pm
Reply to  John Gault

It’s above $83 today…so it appears to be working out so far. 19.267 Yield.

Brian
Guest
Brian
August 24, 2016 3:02 pm
Reply to  John Gault

The stock; however, is below $1 now, taking the 1:10 split into account.

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Ramanan
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Ramanan
December 31, 2016 2:32 pm
Reply to  Brian

We paid for Credit Opportunities in October 2015. We have entered all the bond picks that fell within his recommended price. The NRP recommendation alone has paid for the subscription even though we have not cashed out yet as we are supposed to hold to maturity. We closed out of the Hecla mining pick as per recommendation at a profit. All the rest of the picks are at a profit. Entering the second year and need to see how it works out moving forward.
All recommendations are accompanied by a thorough and detailed analysis.

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dorare
Member
dorare
June 9, 2017 1:09 am
Reply to  Ramanan

Ramanan, are you still a member?

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Mark Richard Taylor
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Mark Richard Taylor
February 21, 2016 11:23 am