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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Night Trader who wrote (86134)	11/30/2000 9:30:34 PM
From: Knighty Tin	Respond to of 132070

MK, This is one where I would have to walk the properties they own before I'd have a good feel. I know that any time a preferred is yielding 2 and a half time the 30 year bond rate, that the dividend is questionable, at least in some folks' minds. I really don't know the co. well enough to make any sort of pronouncement. However, in general, I don't buy the yield shares of companies in distress. If they go under, the preferred goes under, too. If they go up, the preferred shares go up much less than the common. Since the firm has suspended the common dividend, it can suspend preferred dividends at any time. It may not be absolutely necessary, but if mgt. decides the money can best be used elsewhere, it is possible. I'd probably give this a wide berth unless I knew a lot more about its holdings.