Bear Stearns adjusts focus list amidst stalled stock recovery

By Ronda Fears

Nashville, Tenn., July 11 - With stock price recovery in the offing, Bear Stearns & Co. revamped its convertible focus list to better reflect the view "that we live in a stock picker's market underpinned by credit fundamentals."

"We believe that any broad-based recovery is at best a fable and at worst a warped fantasy, at least for the near term," said analysts Rao Aisola, Sarah Gallagher, Matthew Hempel and Thomas Sugiura in a report.

"Consequently, our focus list will be structured with a blend of high yield, solid credit, modest equity exposure and current income.

"Further, keeping with real world investing strategies, we will not hesitate to turn a security over should our, including our equity analyst team, basic investment premise change."

Consistent with that investment philosophy above, they made a few changes to the group's recommended list of convertible holdings.

Added are the Barnes & Noble 5.25% subordinated notes due 2007, Gap 5.75% senior notes due 2009, International Rectifier 4.25% subordinated notes due 2007, Manpower 0% due Aug. 17, 2021, Nextel Communications 6% senior notes due 2011 and Solectron 0% senior notes due 2020.

Deleted are the Anadarko 0% due 2020, Equity Residential Properties $1.813 preferreds, Equity Office Properties $2.625 preferreds due 2008, Mail-Well 5% due 2002 and Sprint $1.781 units due 2004.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.