Gold and Silver Juniors, Mid-tiers and Producers Message Board

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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers

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To: loantech who wrote (62397)	12/8/2008 4:55:31 AM
From: goldsheet	1 Recommendation Read Replies (1) of 78407

Have you looked at the Hecla preferred shares ? The 6.5% Series C Mandatory Convertible Preferred Stock looks interesting finance.yahoo.com With HL trading at 1.93 the pfd-C has a conversion value of $16.31 (1.93*8.4502) It is trading at $19.37, about a 19% premium. Here's the interesting part: If someone acquires Hecla, the conversion rate goes to 10.3093, making conversion value $19.90 @ 1.93. If Hecla goes out of business and liquidates, common stock goes to zero, but these cumulative preferred have a liquidation value of $100 plus dividends in arrears. The annual dividend is $6.50, which would make the yield over 33% if they were paying it. It's cumulative so dividends should eventually get paid. Seems like a way to play HL with less risk than common. Check 2007 10-K filing (on HL website) for all the details

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