The stock of love

As Valentine's Day approaches, investors are looking for the perfect stock to fall in love with. While many may be focusing on traditional picks, Chris Pretorius, Wealth Manager at AlphaWealth, has a surprising recommendation - it's not a stock, but a bond. During a recent interview on CNBC Africa, Pretorius highlighted the potential of Sprint Corporation bonds in the wake of some significant market news. Sprint Corporation recently received approval for the takeover by T-Mobile in the US, a move that sent the Sprint share price soaring by 70%. However, the bond market has not yet reacted to this news, presenting an opportunity for investors. The Sprint bond is currently trading at a 7% yield in dollars, significantly lower than the equivalent T-Mobile bond at 30%. This discrepancy suggests a potential 20% upside on re-rating should the takeover be completed successfully. Even in the event that the takeover falls through, investors can still enjoy a 7% yield in dollars, providing a level of security and stability to their investment. This unique investment opportunity presents a compelling case for investors looking to add a little romance to their portfolio this Valentine's Day. Pretorius's unconventional Valentine's Day stock pick offers a blend of risk and reward, with the potential for significant gains if the takeover proceeds as expected. As investors weigh their options in a volatile market environment, the stability and potential upside of Sprint Corporation bonds stand out as an attractive opportunity. This Valentine's Day, consider adding a touch of romance to your investment strategy with Sprint Corporation bonds.