Why is the analyst recommending to sell the equity and buy the bonds?

Words: 241
Pages: 1
Subject: Research Writing

-Please read Joy Global research report Actions

Why is the analyst recommending to sell the equity and buy the bonds? Do you think his analysis makes sense? Why or why not? Why would a company that is a good bond investment not be a good equity investment?

Look at the slides on Capex, Margins and Inventory Turns for various retail companies. What conclusions can you draw about these companies’ business models/strategies? Think about product pricing, and what that means for margins. Also think about how these companies and their products are viewed by the marketplace. What aspects of each companycix’s strategy affects its ROE?