Sunday, October 27, 2013

Knowing What You Want Out of Your Investment



As I told you many times before, gambling is not investing. Speculating is not investing. Buying a home to live in is not investing. So what is investing? An investment is to commit money or capital to achieve a return. The investor knows how much money or capital they are committing and how much they expect to get at the end of the investment.  When you speculate in something, you expect to gain a profit but you have no idea how much or when. Gambling is when the person has no idea what they are putting their money into and hopes that they can get a fast profit.


   
   Many people are expecting a guarantee. A guarantee is an assurance of something that assures a specific outcome. In the case of investments it could be a guarantee that the investment would give you a percent of return or if the investment fails, you would get your money back. Before we go any further, in the world of gambling, speculating or even investing, there is no such thing as a guarantee. 

I   If someone say that they can guarantee you a fix rate of return, then you know that the person talking can't be trusted. 


I have a friend that I knew for decades. The friend came to me and asked me about this investment opportunity that some investment salesman told him about. The friend wanted to know if this was a good investment. If someone has to come to me and ask if an investment is a good investment then they already know what the answer is going to be? NO……



When looking at bond investments, the investment of choice for me, here is why I wrote the course on investing for anyone who wants to know about bond investing. Click on the link below.



Just about any vehicle is a good investment, speculative, or gambling instrument for someone. Most are not good for me. What you as the person putting up the money have to determine is;

   1. Am I investing, speculating, or gambling? An investment is allocating money for a corporate bond. You know how much you are putting up for the investment, for how long, and you know when you will get the money. Allocating money for a stock on the New York Stock Exchange or money for a mutual fund is what you would do when you want to speculate. You want to gamble then just buy the next hot stock talked about on the Financial Cable TV channels.

   2. Once you find out what you want to do, figure out how much risk are you willing to take. For example, if you want to invest in a “AAA” bond because it has very little business risk, that is great. But if the bond is only giving .5% interest and the inflation rate is 2.3%, you are already losing money, 1.8%. You have to beat inflation to make money.

    3. Have some idea where the country is in the interest rate and inflation cycle.  If the talking heads on TV and the representatives from the Federal Reserve is talking about tightening  interest rates soon, you may only want to buy bonds that mature in less than 5 years. If the inflation rate is only 2% and if you are investing in bonds that is giving say 10% then you can afford to go out 10 years in maturity because a yearly increase in interest rates for 10 years will probably total lower than 10%.

   4. Look at the Standard and Poor’s ratings, we know that if a bond is above BBB+ then we know to check the interest rate of the bond. If the bond is less than a B- then we know that the bond is carrying a very high business risk.



For bond investing, this is all that you need to know about how to select bonds that you want to invest in.
  

Thursday, October 10, 2013

LANTHEUS MEDICAL IMAGING 9.75% 05/15/17

Lantheus Products


I just finished some junk bond research and found one that looks very interesting. Lantheus Medical Imaging 9.75% of 05/15/2017. This bond has 4 years and 7 months until maturity. So the “Yield to Maturity” is approx. 12.215%. This means that inflation is probably not a threat for the life of the bond.  This bond is rated Caa2 by Moody’s and B by S&P. This bond is not on bond watch. According to these ratings, the bond will not be going into default anytime soon. But nothing is guaranteed. The debt ranking is “Senior Unsecured.” The resent price of the bond was $930 giving $97.50 per year in interest. It pays every May 15th and Nov 15th until maturity. It pays $1,000 on May 15, 2017.

To find the bond in your bond store use this CUSIP No. 516545AC4. People who took my bond free online course know what I am talking about.

Who cares what Congress and the President does with this budget crap. We all know that sooner or later the national bills have to be paid. All the politicians are going to do in the end is declare victory for their side and go home. So we really do not have to care about that. If the bond holder is not paid, the company goes into chapter 11 bankruptcy.   

What do they do?


LANTHEUS MEDICAL IMAGING, a global leader in developing, manufacturing and distributing innovative diagnostic imaging agents, is dedicated to creating and providing pioneering medical imaging solutions to improve the treatment of human disease.

Their proven success in discovering, developing, and commercializing innovative medical imaging agents provides a strong platform from which to bring forward breakthrough new tools for the diagnosis and management of disease. LANTHEUS has a rich heritage and expertise in cardiovascular imaging and nuclear medicine, having pioneered many of the most significant products used in medical imaging.

Our current imaging agents primarily assist in the diagnosis of heart, vascular and other diseases using nuclear imaging, echocardiography and magnetic resonance imaging (MRI) technologies. We also have a full clinical and preclinical development pipeline of next-generation and first-in-class products using Positron Emission Tomography (PET) and MRI technologies.

Our vision is to be the leading provider of innovative medical imaging solutions to improve human life. We are committed to developing next generation and first-in-class imaging agents to assist physicians in the diagnosis of heart, vascular and other diseases.

With direct operations in the United States, Puerto Rico, Canada and Australia, we have a long and distinguished history of developing and commercializing innovative market-changing products.

This company sounds like that it will benefit from the full implementation of Obamacare!

What do the employees think?


Being an investor is one thing. Working for Lantheus Medical Imaging is another. This is a comment written in the Blog, “Glass Door” by one of the company’s employees, “Leadership of the company is a joke. The goal of the company is to manipulate the bottom line to make it attractive to perspective buyers. This has mostly been accomplished by layoffs. At least 33% of employees have been laid off in the four years since Lantheus has acquired the business...and the layoffs continue. Long time employees were once very supportive of one another but now it is every man (woman & child) for themselves. Senior Management has created a toxic and stressful environment where everyone is fearful of losing their jobs. Salaried employees are expected to work at least 50 hours a week at the site. Hourly employees have had their work schedules staggered to accommodate odd work schedules without the company having to pay them overtime.”


Advice to Senior Management – The Company is being run out of sheer greed with minimal regard for the well-being of its employees. It unfortunately represents all too much of a microcosm of the worst of what is happening in the business world today.”

Investor Relations
  • Phone: 978-671-8001
  • Email Address: ir@lantheus.com