I shared my take on the value investing side here but I do not see the QRTEP as the best use of money if you're bullish on Qurate at all. I have my value analysis there in the recent posts too.
From one of those posts I made this morning:
<< If you are bullish on their turnaround and do see them as a value play then the common seems to be the better buy right now.
If I took $1,000.00 I only get 44 shares of QRTEP at a current price of $22.90/s, but with QRTEA I get 1,818 shares at a current price of $0.55/s.
Complete hypothetical, but let's say the positive impacts from Project Athens begin to be felt and the fear of bankruptcy subsides and investors return. If I held QRTEP to collect all dividend payments and the stock, again hypothetical here, returned to its 52-week high of $53.96 ($61.96 would be price with dividend payments included), this turns a $1,000 investment into $2,705.54 for a profit of $1,705.54.
If QRTEA returned to its 52-week high of $2.84/s, then this turns the $1,000.00 investment into $5,170.00 for a profit of $4,170.00.
Both have same assumed risk of bankruptcy but given how beaten down the common is the potential for return is greater even with the dividend that QRTEP is paying.>>
Just some thought on them if you are adding them to the watch list.
-Sean |
