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

To: Paul Senior who wrote (20637)	2/9/2005 7:58:22 PM
From: E_K_S	Read Replies (2) \| Respond to of 78682

Hi Paul - Thanks for your opinion. I have been slowly converting my common share purchase of ABS over to the preferred assets. My cost basis for my common shares is around $20 and I have sold half of my position in the common at $24.50 and bought the preferred at around the same price. This way I receive the higher "qualified" dividend while I wait for the company turn around. It's a matter of making a fair investment into a better investment (7.5% yield plus possible capital gain return.). The point of my post was that if the waiting period for the turn around will now be 24 months (and it's turns out to be a positive event), then the preferred shares are the best "hold" and "wait" strategy. My strategy was to exchange my common position to the preferred position. I still have 1/2 of my common position which I will continue to sell Jan'06 $25 calls. ========================================================= Did you notice that the ALD dividend in a "non-qualified" dividend? The SFL dividend (about the same rate as ALD) is "qualified" and taxed at the lower rate. I am also following your JPM pick as I need to add to my bank stocks. Your Citi Corp. call (a few month's back) @ $44.50 (C) was excellent and I wish I had picked up more shares (it's a "qualified" dividend too!). I continue to load up on NYB and have up my position twice at prices in the $17 range. NYB now ranks number 2 in my taxable portfolio and I believe the long term holder will achieve a good return and will collect a safe %5.25 dividend while they wait. Finally, my new MRO position has done quite well moving above $40 near new highs. I covered my naked April $32.5 Put today and continue to let my April $40 covered call ride. These oil stocks continue to do quite well. Congratulations on your picks in the home builder stocks. New highs again! I missed this sector but this is the nature of the market. Your observations are always helpful. EKS