HYBRID VIGOR: VOL 3 ISSUE 34 "No Bliss Obliged"

Explosions abound. Scary literal ones in Manhattan and New Jersey.  Figurative ones on the fringe of the presidential campaign, as Gary “The Aleppo Kid” Johnson gave his take on ignorance by expressing his gratitude that nobody was hurt in the attacks—news to the 29 people injured in the bombings and the stabbing victims in Minnesota.  Based on recent poll movements among the two main candidates, it’s hard to say whether Mr. Johnson’s ignorance will hurt or boost his standing.  It’s hard to argue that ignorance seems to appeal to many voters.

At Hillside, though, we don’t subscribe to this approach. We try to bring new viewpoints and approaches to our readers while respecting more traditional analysis.  That’s why we’ve introduced the only analytical newsletter dedicated to convertibles and equity-linked securities. That’s why we’ve created risk and rating measures like HARP and HOCS. That’s why we’ve acted as de facto media representatives for the asset class and provided guidance for potential capital raisers in some of the most favorable market conditions for first-time convertible issuers.

Of course, some companies know full well the value of using convertibles as a primary ongoing financing tool. Consider Insulet (better known to ticker watchers as PODD), profiled this week by Kathy Schick.  Insulet first tapped the convertible market with an $85 million deal more than seven years ago.  Its latest issue was its fourth. Along the way Insulet has issued new equity three times.  Critics of such financings say they depress the stock price. Someone forgot to tell Insulet—the stock has more than quadrupled since the first convertible deal.

The campaign marches on. Hillside too moves forward. We thank everyone for the congratulations and good wishes on the alliance we announced earlier in the month.  We are excited to be able not only to discuss and promote our favorite asset class but to work more closely with a talented, experienced investment group.  We hope to have another major announcement in the near future. 

(This is the cover letter for the subscription-based weekly Hillside's Hybrid Vigor newsletter. For a complete copy, please contact John Anderson at + 1 (646) 712-9289 x 107).