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: Grommit who wrote (35448)	9/25/2009 1:34:40 PM
From: rllee	Read Replies (2) \| Respond to of 78750

Anyone have an opinion of Ford preferred A (F-PA)? Paying 9%+ yield and looking up as a increasingly stronger (and perhaps the sole surviving U. S.) auto manufacturer with a great CEO who know what the public wants.

To: Grommit who wrote (35448)	9/25/2009 4:00:24 PM
From: E_K_S	Read Replies (1) \| Respond to of 78750

BDN closed their financing today. finance.yahoo.com Brandywine gains after $250 million debt offer Brandywine shares advance after raising $250 million in unsecured debt Tuesday September 22, 2009 From the article:"...UBS analyst Ross Nussbaum said the new debt carries a "solid" yield, which compares well with its other debt due 2014 with an interest rate of 5.4 percent and yields in the low 8 percent range. Bond investors compare yields when they're investing in debt. Brandywine's successful debt offering shows there's still strong demand for real estate investment trust paper in the credit markets, the analyst said in a research note...." ..."...Nussbaum said access to the unsecured market is important for Brandywine, since it's more dependent on this type of debt than its peers. About 70 percent of Brandywine's debt is unsecured as of the second quarter, compared with 34 percent on average for its peers. Brandywine's ability to raise unsecured debt is a positive for the company, a feat Nussbaum didn't believe it could have pulled off some months ago...." =============================================================== I own the BDNpC which at $21.5 now yields 8.75%. The stock goes xdividend on 10/15/2009 ($0.47/share) and is only yielding a 1.125% premium to the new debt just issued. I am tempted to sell 1/2 my BDNpC in the taxable account and put the proceeds into FRpK which yields around 12.5%. The risk may even be a bit less with FR as their debt exposure is a bit less than BDN. I missed DDR so I will pass on that one. Keep us advised on other income producers with value as your lists have been useful to me. EKS

To: Grommit who wrote (35448)	11/19/2009 4:51:02 PM
From: E_K_S	1 Recommendation Read Replies (2) \| Respond to of 78750

RE: HRP $125 Million 7.50% unsecured Senior Notes Hi Grommit. Did you notice that many of the preferred share series of the REIT companies (eg. BDNpC, HRPpB, HRPpC, HRPpD, FRpK, FRpJ) rallied and approached their post March crash level highs after the announcement of the pricing of the new HRP unsecured notes. HRPT Properties Trust Prices $125 Million 7.50% Senior Notes Due 2019 Wednesday November 18, 2009 finance.yahoo.com Many of these large diversified REITs w/ commercial real estate holdings are OK and have been able to refinance their debt. The big question (in my mind) was at what price was the market going to price new debt? The answer was provided Wednesday by HRP with 10 year debt at 7.5%. Therefore both FRpJ and FRpK should trade around $24/share which would translate into an effective yield of 7.5%. I feel better about my recent purchase at $14.75/share earlier this month as you never know when you might be late to the party. Anybody who bought any of these preferred series already have a two bagger and could well be onto a three bagger once these old issues trade up to the level of these "new" HRP unsecured notes. This is just another example of an inefficient market with sellers (most likely large institutions) bailing out on fear leaving scraps for shrewd value investors to scoop up and pocket the gains. Good job for spotting the REIT trades especially those companies that offered preferred shares. EKS