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Strategies & Market Trends : Value Investing

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To: Paul Senior who wrote (32934)	12/3/2008 1:48:24 PM
From: Grommit	Read Replies (1) of 78672

CLP preferred shares. CLP.PR.D Selling for $13. Annual dividend $2.03 Yield = 15.6% Operating earnings are over 40 cents a qtr. That is after the preferred interest payment! And with the 40 cents, they expect to pay 25 cents dividend to common per qtr. At $5.55 common, the common yield is 18%. Not than much different than the pref, but they cannot pay the common unless they pay the preferred. And I think that the CLP-D shares have price appreciation potential just like the common. finance.yahoo.com biz.yahoo.com biz.yahoo.com And I think the company is setting a floor price of $13: "We have a lot of capacity... and still have almost $150 million of cash to spend on... buying back securities, and right now as we look at it these preferreds that are trading at $13 a share, almost yield of 13% to 14% [wrong, 15.6%] look ridiculously cheap and very attractive from a return standpoint." There are other reit preferred shares with a higher yield. But none in the apartment sector, and none with such low leverage. But for the really skittish... there a number of utility preferred shares paying 5.5% to 7.5%. I found one at 8.5%. It is Baa rated, like the rest, but trading at a lower price. IPL-PB. A sub of LNT. IPL is "a regulated utility serving customers in Iowa, Minnesota and Illinois..."

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