Monday, March 8, 2010

U.S. Concrete (RMIX) Notes Now Trading Flat; Stock Rallying Anyway

U.S. Concrete (RMIX) stock is up 9% (5 cents) today.

Meanwhile, the notes that I own as part of the RMIX capital structure trade aren't really trading today but they are about 60 bid, although that bid is flat, meaning without accrued interest.

The next coupon payment is supposed to be April 1, although it is pretty clear from the company's press releases that the bank lenders are going to "block" that payment. So, most bidders are essentially treating the ~4 cents of currently accrued interest as a lost cause.

How any of this is bullish for the equity is a mystery to me. I am looking at adding to my RMIX short today.

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