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Non-Tech : Income Investing

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jayhawk969

tjon72

To: drpiranha who wrote (10793)	7/3/2014 8:19:19 AM
From: YieldHog	2 Recommendations Read Replies (2) of 52048

Re: re GST-B I agree 100% with your comments. I learned this the hard way with GAT, which was a 8.20% preferred issued by an "A" rated utility. I bought this close to par and sold way to early, after the price jumped to $30. As drpiranha mentioned GAT held this price until 12-18 months before the call date. Other current examples of this are SSW-C 9.50%, trading at $27.82 with a 1/30/16 call date YTC 2.19% MRH-A 8.88% trading at $27.27 with a 5/10/16 call YTC 3.78% As for GST-B, as I previously stated, in my opinion it is way to early to sell this. It has not even been issued for a year and is over 4 years to the call date. I believe you can hold this for 2 more years, collect a 10.75% coupon (on the $25 par) and the price decline will probably be moderate (assuming the credit quality of GST remains the same)

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