BEKlein,
You are correct, I did not take out the Preferred, I was using this as an illustration in calculating book value, which, is still +$4.
On the other hand, to be completely accurate, one should make the proper adjustments for Other Assets as well. A question comes to mind of the purchase date for XCIT, where such purchase is carried at original purchase value, and not reflective of the current stock price. Its like fixed assets. In order to get the true value of a fixed asset, its usually better to get the carrying value of the insurance surrounding the fixed asset in order to determine appropriate replacement value. Maybe I'm just picking nits, but it does bring up an interesting element in considering CD, namely: it should be evaluated on its economic value and analysis should not be limited to what is strictly reported on the books.
At this point, this is all speculation anyway, but book value, is with 90% certainty, above $4, and could be as high as $5.75. |
