I have an update on Seventy Seven Energy (SVNT)
music selection: “The Freshmen” — The Verve Pipe
On 15NOV2015, I purchase two Seventy Seven Energy bonds at 36.55 cents on the dollar. The company later filed bankruptcy. Upon exiting bankruptcy, I received 65 shares of the newly constituted and debt free SVNT. Today, a deal was announced with Patterson UTI (PTEN) that sent shares soaring 67%. My position is now worth 2,860 (original basis was 731). After accounting for coupon payments and commissions, the annualized yield (over 371 days) is now 289.31%. I got lucky in that limit orders to sell for much less never filled as liquidity of this over the counter stock has been very low. Today, I received a gift from Mr. Market.
I will be closing my limit order to sell SVNT and await an exchange for 1.7725 shares each of PTEN. Liquidity of that issue is a lot higher and I should have no problem executing a sale thereafter.
Devour your prey raptors!