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

To: Jurgis Bekepuris who wrote (36512)	1/22/2010 2:36:33 PM
From: geoffrey Wren	Respond to of 78744

FR preferred surprised me the way it has improved 10% in price lately. I lightened up considerably due to concern after that mention in the press release after close of business on a Friday (1/8) that they might suspend the preferred dividends for a quarter or two. I believe the first suggestion of possible upcoming bad news is seldom the last. I was thinking it could be people just going after the juicy dividend, but the move seems oversized for that. Hard to say. I may sell the last bit, and just buy FR. If they get through this FR will move up much more than a preferred, and if they do not get through this, I question whether the preferred will do that well on bankruptcy distribution. At least I reinvested the proceeds with GOV, so the relative loss is only about 3-4%.