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Convertible Bonds: Much Of The Upside With Less Downside

November 1, 2010
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Convertible bonds are an attractive vehicle for investors who want equity-like returns but cannot bear the volatility of stocks. A convertible may also provide more current income that the underlying stock. [Discussing the warranted attractiveness of convertible bonds from eleven companies in turnaround scenarios…]
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Questions & Tips

AskGeorge

Why are you still recommending MGIC?

I don’t normally comment on individual stocks in this particular blog, but the MGIC situation represents a basic investment principle that is worthy of discussion here.

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How important are Price-to-Earnings (P/E) ratios in evaluating turnaround stocks?

Price-to-Earnings ratios are probably the most widely used tool for comparing the relative values of different stocks.

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