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The Performance Rank assigned to a convertible by our model indicates how that convertible is expected to react to market conditions in the upcoming six to 12 months. A convertible will not be ranked, however, if its underlying common stock is not ranked by either The Value Investment Survey or its sister publication, The Value Investment Survey Small and Mid-Cap Edition, or if a once-ranked common stock has had its rank suspended.

Still, the absence of a rank is certainly not an indication that a convertible will not do well over the year ahead. Indeed, investors may often have fundamental reasons to be bullish on a stock that is not ranked by The Value Line Investment Survey. If there is an outstanding convertible issued by an unranked stock, and it is included in our convertible database, then The Value Line Convertibles Survey provides enough data to help determine its attractiveness vis-à-vis the stock. Below is a list of ten convertibles we believe have solid potential despite the lack of a common rank.

 

Com

Issue

Recent

Conv

Conv

Stk

Stk

 

Convertible Securities

Ticker

Size

Price*

Curr Yld

Y-to-M

Prx

Yld

Industry

RAIT Fin'l Trust 6.875s2027 (144A)

RAS 

246.4

41.21

16.7

18.9

2.14

 NIL

REIT 

Cohen (Alesco Fin’l) 7.625s2027 

COHN

28.7

75.00

10.2

11.2

6.5

 NIL

REIT 

Capstead Mortgage $1.26 B      

CMO 

180.3

$13.00

9.7

N/A

12.92

11.1

REIT 

NorthStar Realty 7.25s2027 (144A)

NRF 

68.2

85.25

8.5

9.2

4.33

9.2

REIT 

Hilltop (Afford Res) 7.5s2025  

HTH 

90.9

108.52

6.9

7.0

12.33

 NIL

RE   

China Med'l Tech 4s2013 CMT    

CMED

276.0

59.25

6.8

22.5

13.58

4.1

MedSup

LDK Solar Com 4.75s2013        

LDK 

400.0

71.23

6.7

17.8

6.95

 NIL

TelEqp

MPW(MPT Oper) 6.125s2011 (144A)

MPW 

138.0

98.16

6.2

7.4

10.88

7.4

REIT 

RenTech 4s2013                 

RTK 

57.5

71.00

5.6

17.0

1.06

 NIL

OlfdSv

Sino-Forest 5s2013 (144A)      

TRE.TO 

345.0

90.00

5.6

8.6

9.76

 NIL

Paper

JA Solar Holdings 4.5s2013     

JASO

187.1

82.30

5.5

11.6

4.88

 NIL

Power

* Prices as of March 12, 2010

Selected Convertible Profiles:

Cohen & Company (COHN) offers asset management services. It manages credit fixed-income investments for public and private investment companies. Cohen also places new issues of corporate debt and sells and trades fixed-income investments. The company was founded in 1999 and is based in Philadelphia, PA. The company’s 7.625% convertible senior notes due 2027 were originally issued by Alesco Financial in 2007. Cohen later acquired Alesco and took over the debt. The issue’s 7.625% coupon and a generous 11.2% yield to maturity make this convertible a worthwhile addition to yield-oriented portfolios. Internet: www.cohenandcompany.com.

China Medical Technologies (CMED) develops, manufactures, and sells medical devices using high-intensity focused ultrasound (or HIFU) for the treatment of solid cancers and benign tumors in China. The convertible issued by this company provides greater income than the underlying common stock. Furthermore, it is higher in the hierarchy of the corporate structure. That is, interest on the debt must be paid before distributions to common stock holders. This, and the company’s short history, makes the convertible a safer option than the common stock. Internet: www.chinameditech.com.