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What is one of your best ideas for 2019, and what is the story?
Richard Lejeune: KTP and the other J.C. Penney (
JCP) 2097 bond trusts including
HJV,
PFH,
JBN and
JBR are tremendously oversold. Some are now trading for less than 25 cents on the dollar. They are trading at a very large discount to the JCP 2097 bonds held by the trusts. JCP and the retail sector are currently despised by investors. Despite all its well publicized problems, JCP remains cash flow positive. It has excellent liquidity and has no major debt maturities for a few years. The new CEO has a chance to turn things around. A strong economy with low gasoline prices and the recent demise of some of its competitors such as Sears (
OTCPK
HLDQ) should help.
