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

To: rllee who wrote (35110)	8/14/2009 3:10:15 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78751

Straight Preferred's (not convertible or hybrid). To start with, how about seeing that the issues are cumulative?

To: rllee who wrote (35110)	8/14/2009 3:14:19 PM
From: Paul Senior	1 Recommendation Read Replies (2) \| Respond to of 78751

Fwiw, I'm making a buy today of etf PGF, and using the infamous m word to do it. Per Yahoo its top holdings are: finance.yahoo.com

To: rllee who wrote (35110)	8/14/2009 3:33:10 PM
From: Jurgis Bekepuris	1 Recommendation Respond to of 78751

For preferreds, you have to estimate whether the company may suspend dividend and/or the company may go BK and wipe the preferred holders. You already mentioned yield, but there is also a question of interest rates - if interest rates go up and safe bond yields go up, the preferred price will drop (as any bond) so the yield stays higher than more safe bonds. Finally there is issue of 15% tax rate eligible preferred divvies vs. not. And whether 15% rate will survive 2010. :(