Zeev's Turnips Patch-No Politics (ZEEV)

[KyrosL]

The reason I am not in MIR common is because I feel I have enough exposure by holding MIR bonds. In a junk bond situation like MIR, the bonds essentially can be considered as half bond and half stock. Also, I am a believer in Zeev's nassacre, and in such an scenario, most stocks will go down. The portfolio right now is less than 10% in stocks.

Most of the MIR short interest is arbitrage from the convertible issued last year, so it's not going to fuel much of a squeeze.

I think MIR and other pure IPPs will have a hard time in the next couple of years. I think it will survive, but will not produce a lot of profit for the common shareholders. That's the reason I am holding the bonds of MIR and ILA and not the common. Of course, the sensitivity to earnings is high and if earnings come in at significantly more than, say, 50 cents, the common may take off. But as you pointed out there is zero information one way or another.

Kyros