2005-12-01 - While J W Korth and Company continues to own Dura Operating Corp and Dura has a large cash on hand position and its cash flow is near positive, it was deleted for the time being from new portfolios while we are awaiting clarification on the future of the auto industry. PolyOne Corporation, a 2005 free cash flow positive chemical polymer manufacturer added in its place to provide adequate diversity. This change between Dura and Polyone makes up the difference between DHYP I and DHYP II.
2006-01-23 - Evaluation of DHYP I. We evaluated the perfomance of DHYP I from its inception of 10-21-05 to 1-23-06. The principal cost of the bonds on 10-21 was $9,155.00. The current principal cost is approximately $9,047.00. All bonds are current on interest payments. With a current yield on the portfolio of approximately .846 per month. or approximately 2.54% over the 3 month period.
2006-01-23 - Evaluation of DHYP II We evaluated the performance DHYP II from its inception on 12-01-2005 to 1-23-2006. Its principal cost on 12-01-06 was $9,248.00. Its principal cost on 1-23-2006 would be $9,277.00. All bonds are current on interest payments and the current yield on the portfolio is approximately .840% per month.
2006-02-17 - DHYP II Notes: It was announced that US Can is to be purchased by Ball Corporation and the US Can bonds we put in the portfolio at about 95 are expected to be called in March at 106+. We are now offering DHYP III in this Dura Operating Corp returns replacing US Can. Dura Operating Corp is the bond issuance division of Dura Automotive Systems (DRRA). We removed Dura from our portfolios on 12-01-2005 due to the uncertainty in the auto industry and Dura in general. This changed early this week with the SEC 8k filing by Dura that they have retained investment bankers to take bids on three german subsidiaries. Part of our original research regarding Dura concluded that because the company was a conglomerate of specialty auto suppliers that should the going get tough, Dura could sell certain subsidiaries to provide sufficient liquidity to be sure their 9.0% bonds would be paid. The offering of the German subsidiaries confirmed that opinion. This along with the fact that Dura has repurchase $49mm of it 9.0% bonds for its own account, has encourage us to place it back in the portfolio. Therefore, owners of DHYPII should consider purchasing Dura as soon as the bonds are called in March and we are now offering DHYP III.
2006-05-01 - In April we sent out a notice to all portfolio holders that we no longer considered Sea Containers a sound investment and recommended customers sell their position at 92.50%. Currently the bonds are approximately 87.5%. We recommended replacing Sea Containers with Jo Ann Stores, a nationwide fabric and crafts wholesaler.
2006-05-25 - On the first of May, US Can was called at 106.18%. This was placed in the DHYP at a price in the mid 90s. For our in house portfolio we have purchased Radiologix. This is an medical imaging company that operates centers in a broad area of the US. Even though it is in a turn around mode with new management, it is currently profitable and has a large chance of being successful in the future. Bonds are currently yielding near 15.0%.
2006-09-11 - Dura Operating Corp is experiencing a very difficult earnings environment and our portfolio bonds have declined dramatically. Dura has a very substantial amount of liquidity and we expect that the strong commitment by management to a turnaround will succeed or a restructuring will occur which provides our portfolio holders a reasonable value for their bonds.
2006-11-14 - We just completed DHYP V. In DHYP IV, Motherswork was called at 105.75%. GNC has risen to such a high price (103%) that we no longer felt it was a value for new accounts and Wolverine is experiencing some problems (84%). Consequently, we added Jo-Anne Stores, Dole Foods, and Finlay Fine Jewelry.
2007-04-17 - Having reviewed our latest portfolio and the market in general we believe that the prices for high yield bonds in general have appreciated to a level where the potential rewards do not off set the risk. Therefore we are suspending our offerings. We believe that investors who would usually buy high yield corporate bonds should seriously consider our international offerings where currency risk supplants default risk. Owners of high yield portfolios should call us to review their holdings. Several bonds can be sold at high profits now and you can switch into international exposure.
2007-08-16 - Marty is interested in equities but feels that the current market 8/16/07 is more than just a correction. He feels this is the beginning of a bear market.
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