Star Bulk Exchange-Traded Notes Due 2019: Up 50%, The Trade Is Over - Do You Stick Around For The 8% Yield?

(Market prices on dates of submission of the earlier articles were $15.62/share at the close on June 14th, 2016, and $16.50/share at the close on June 28th, 2016, as reported by Yahoo Finance. The current market price is $24.63/share as of the close on June 5th, 2017, again as reported by Yahoo Finance)
This article is intended to "close the book" on a recommendation to buy the Star Bulk Notes due 2019 (SBLKL), originally made in an article on June 15th, 2016 (found here), and with a follow-up article on June 29th, 2016 (found here). These Notes were issued by Star Bulk Carriers Corp. (Nasdaq: SBLK), a dry bulk shipper hereafter referred to as Star Bulk or SBLK. Recommendations were made in both articles to purchase the Notes at a price of $16/share or less. The market price was in the range of $15.50-$16/share in the period up to the publication of the first article; after the second article, prices in the following days touched the $16/share mark, then increased in market price and remained above the recommended price thereafter.
The Notes are now trading close to face value; as such, the choice for an investor in these Notes is to close out the trade with a significant gain or stay with the investment to continue to capture an 8% yield (delaying the monetization of the gain to November 2019). Traders may well want to close out the trade as there remains little additional upside in market value; however, income investors may want to hold this security to redemption... Read more

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