2006-11-14 - We just completed the offering of Diversified Mid-Grade Portfolio II. In General DMGP I is performing well. The only bond that changed in DMGP II was Lear was replaced Quiksilver Corp. a maker of sports apparel.
2007-04-19 - We have made the following change to our Mid-Grade Portfolio. We have removed Unisys Corporation and replaced it with Deluxe Corporation. The anticipated softness in IT spending, weakness in the number of deals in the Americas, and increasing offshore competition have prompted our decision. Additionally, the credit rating of Deluxe is in keeping with the credit profile of our portfolio.
Deluxe Corporation- The largest check printer in the US, serving banks, credit unions, and financial services companies. Sales of $1.64 bln (2006) and EPS of $1.95, the company is expecting to increase EPS to $2.55 on revenues of $1.60 bln in 2007.
Deluxe currently has approximately 8,400 employees. It is listed on the NYSE.
For more information go to www.deluxe.com
Lear Corporation- This issuer remains in our portfolio at the present time. The rating has fallen below our target of BB. However, several compelling arguments allow us to maintain this position. Carl Icahn is attempting to buy the auto parts giant. If successful, we believe that he would try to combine Lear with Federal-Mogul, a company he currently controls through bond purchases he has made over recent years. The combined company would be extremely profitable with only a 5% to 8% net profit margin because of massive loss carry-forwards that would shelter them from taxes for many years.
2007-04-19 - We have made the following change to our Mid-Grade Portfolio. We have removed Unisys Corporation and replaced it with Deluxe Corporation. The anticipated softness in IT spending, weakness in the number of deals in the Americas, and increasing offshore competition have prompted our decision. Additionally, the credit rating of Deluxe is in keeping with the credit profile of our portfolio.
Deluxe Corporation- The largest check printer in the US, serving banks, credit unions, and financial services companies. Sales of $1.64 bln (2006) and EPS of $1.95, the company is expecting to increase EPS to $2.55 on revenues of $1.60 bln in 2007.
Deluxe currently has approximately 8,400 employees. It is listed on the NYSE.
For more information go to www.deluxe.com
Lear Corporation- This issuer remains in our portfolio at the present time. The rating has fallen below our target of BB. However, several compelling arguments allow us to maintain this position. Carl Icahn is attempting to buy the auto parts giant. If successful, we believe that he would try to combine Lear with Federal-Mogul, a company he currently controls through bond purchases he has made over recent years. The combined company would be extremely profitable with only a 5% to 8% net profit margin because of massive loss carry-forwards that would shelter them from taxes for many years.
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