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Strategies & Market Trends : REITS - Buying 1 - 2 weeks before going ex-dividend -- Ignore unavailable to you. Want to Upgrade?

To: gregor who wrote (1498)	9/13/1999 1:13:00 PM
From: Richard Barron	Read Replies (2) \| Respond to of 2561

gregor, I normally use the preferred to gauge if the common is fairly priced and vice versa. Many times, one or two large positions will be bought or sold that will bring the preferred out of balance. GLB is trading near it's 16 support again, so GLB "A" may come down towards 16. 18 was the pivot point. When the GLB "A" trades above 18, then I look for GLB to start a move if it is below 17. For CEI, the CEI "A" is hanging around 16, which makes it likely that a few large blocks are still be unloaded. When these are out of the way, 21 will be penetrated and CEI can run again. Until then CEI is more likely to test 19 and the CEI "A" retest the 15's again. WDN has been steady between 18 and 20. While the other preferreds discussed are convertibles, the WDN "S" is not. It is extremely mispriced in my opinion with around a 13% yield currently. It has dropped on very small volume, and probably just has no one interested in buying it. It appears to be very safe, and I'm not clear what would happen if WDN merges or is taken over, but if a weak company that is overleveraged is the winner, then these preferreds would be riskier at that point. I wouldn't think that WDN common would like to become part of a more leveraged entity, so this is just an incredible buying opportunity in my opinion. Richard