Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Paul Senior who wrote (33579)	2/20/2009 7:21:54 PM
From: E_K_S	Read Replies (1) \| Respond to of 78748

Paul that's a pretty good entry point for the HRPpB. It pays $0.5469/share per quarter ($2.10/year). I collected my first dividend last week for the batch I bought on 12/26/2008. My previous buy was at $12.20/share. I am not sure what the best way to play these high yielding preferrds are. I am tempted to buy an extra large position of my favorites and peel off gains after a 30% or more run. In the past 60 days my BDNpC went from $7.50 to $13.50. Today you can pick it up for $9.50/share. Long term I like the income that these spin off but with such a crazy market they may be a good way to generate some very good short term gains. So far, they have a limited down side as the dividend approaches 20%. When the yield moves back to the 15%-16% range you can sell and lock in a short term gain of 30%-45%. The bonus is while you wait you get paid very well. Writing covered calls on the common is another way but both HRP and BDN have very little activity on their call options and the premium is not as attractive given the cumulative preferred dividend payment. The transaction cost is also a lot less. If you buy these types of REIT preferred series (at the right price), I think they will hold up better than many other equities especially if the market turns sour. The two REITs I watch (BDN +13% & HRP +12%) both ended up today. I am still waiting for 2-3 days of more downside next week. Then I am thinking of loading up (including a trading position). Definitely not my normal small buy strategy but we are in interesting times. EKS

To: Paul Senior who wrote (33579)	2/20/2009 9:24:07 PM
From: Jurgis Bekepuris	Respond to of 78748

I own some HRP-D. The only fill I got today on prefs was IGK. After it, I got overaggressive with my orders for more IGK and BAC-H and missed both daily bottoms.

To: Paul Senior who wrote (33579)	3/11/2010 3:36:35 PM
From: E_K_S	Read Replies (2) \| Respond to of 78748

Hi Paul - Sold off my HRPpB 8 1/2% Preferred shares at par ($25.00). These were in the taxable account where I was able to lock in a long term capital gain of 100% on shares bought on 12/26/2008. I also received four dividend payments during the period. I still hold FRpK (7.25%) and FRpJ(7.25%) and BDNpC (7.5%) in the taxable account and will sell when they reach par. In the IRA I own BDNpC (7.5%), FRpJ (7.25%) and HRPpD (6.25%) which I do not plan to sell too soon. It might be time again to nibble at the common stock if the credit squeeze is over. finance.yahoo.com EKS