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Strategies & Market Trends : Stock Attack II - A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Paul Shread who wrote (20802)	10/4/2001 3:28:32 PM
From: stomper	Read Replies (1) \| Respond to of 52237

Check out HCN and HCP for yield, and they're in a good space. -dave

To: Paul Shread who wrote (20802)	10/5/2001 12:03:38 AM
From: isopatch	Read Replies (1) \| Respond to of 52237

Hi Paul. Yes, preferreds are more thinly traded. So it wise to build each position with a series of small trades spread over a reasonable time period so the limited supply can fill you smoothly vs one large buy order that might drive your cost up unnecessarily. Part of the reason for the lower volume is that the innitial public offering of a preferred issue is almost never a large share amount. A few million shares is usually about it. But the another important reason volume is often quite low is simply because there's been a lot less interest in the idea of dividends for many years due to the reasons I enumerated in my last post. And perhaps most important, my success often depends upon being able to identify new and emerging opportunities earlier than most other people, it's almost always the case that volume in the areas I've loaded up on increases significantly in the months after I've positioned myself whether I say much about it or not<g>. That happened with the energy stocks in 1999. And you saw it occur with the golds in March/April of this year. The same thing will happen to the best preferreds. With straight income preferreds, the upward price movement of each stock will likely be be glacial<G> The only exception would be a convertible when the underlying common gets up to where the conversion factor kicks in. I like to work with both kinds of preferreds. Yesterday finished putting together another preferred/call option combination position. Was just too busy to post it anywhere today. Will try to get in on the screen tomorrow. Isopatch