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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Grommit who wrote (14642)	6/14/2002 10:45:20 PM
From: TimbaBear	Read Replies (1) \| Respond to of 79000

Grommit I'd like to know which other preferreds you like and why. Timba

To: Grommit who wrote (14642)	6/15/2002 12:51:06 AM
From: Paul Senior	Respond to of 79000

Funny you mention preferreds now. I am just looking at my first one in eons. Maybe since the markets have dropped and keep dropping, we are all looking for some idea how to figure or reduce or limit the downside risk with our investments... or maybe we're all just getting older and more conservative and gravitating to this asset category -g-. Possibly though, there's a lot more realization by everybody that 20% year-over-year portfolio growth is too high an expectation, and even 10% may be unreasonable. In which case, given the low bond yields we are seeing, high dividend stocks that offer a priority in delivering a good dividend (like preferreds), may be an attractive source for an investor's funds. I don't recall ever owning a straight preferred, and I haven't owned a convertible preferred in more than 20 years. The convertibles are often mentioned as providing less volatility than common - one gets some of the upside if the common moves up, and the dividend limits how much the preferred drops if the company or common stock stumbles. I had found that "dividend limits the downside" not to be so. When the companies I watched stumbled, the preferreds fell just as significantly as the common. And they had their own problems just being in that asset class "preferred". In any case, I too am interested in what you might be looking at or have bought as regards preferreds. Paul S.

To: Grommit who wrote (14642)	6/15/2002 12:55:22 PM
From: Allen Furlan	Read Replies (1) \| Respond to of 79000

Grommit, fd-r looks interesting. What is redemption date, 5/14/02 ?? Thanks.

To: Grommit who wrote (14642)	7/10/2002 11:02:11 PM
From: Joan Osland Graffius	Read Replies (2) \| Respond to of 79000

Grommit, I was collecting preferreds some time ago when they were trading at a discount and no one wanted them. I am very careful with preferreds as I want preferreds of companies that are required for human survival because of a potential problematic economy . I like top of the line oil companies that have great resources. Also energy companies that are still regulated and have debt to equity less than 1. (A Graham requirement for investing in this sector.) Recently got a call on one of my preferreds that was paying 8.25% and am looking for a replacement. I bought FR at its low after the S%L crises. I have not looked at them for a while, but I sold it ahead of Warren because they were paying above replacement costs for properties. Joan