Value Investing News

Yesterday we briefly compared the equity of Sears Holdings to its outstanding “junk” bonds and found that an investor with a short time horizon (say 2-3 years) may find comparable or superior value in the bonds when compared to its equity. Today, we use Benjamin Graham's insights into bond valuation to evaluate the risk of Sears bonds in greater detail.

• http://widemoatinvesting.wordpress.com/2009/03/06/analyzing-sears-and-bonds/ (4)