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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Mike M2 who wrote (123816)	7/21/2010 2:14:12 PM
From: longnshort	2 Recommendations Respond to of 132070

Tea Party Racism?? youtube.com

To: Mike M2 who wrote (123816)	7/21/2010 5:26:23 PM
From: Knighty Tin	Read Replies (1) \| Respond to of 132070

O.K. I promise. If Jeff Davis runs again, I won't vote for him. Mike, things have changed. Those racist Democrats are long dead and good riddance. They aren't relevant to our decisions today. I no longer hate the English for The Boston Massacre, either.

To: Mike M2 who wrote (123816)	7/24/2010 7:55:45 PM
From: Knighty Tin	Respond to of 132070

To All, I am taking my buys off several AAA rated preferred stocks as they are now priced above their call prices. These are (stock symbols are those that work on the SI quote system. Preferreds have a different way of being quoted on every system.): GAM-B at 25.05 GAB-D at 25.14 GAB-F at 25.72 GCV-B at 25.79 GGT-B at 25.19 GUT at 25.26 GDV at 25.16 RVT-B at 25.21 RMT-A at 25.21 RFo-A at 25.80 GDL-a at 54.16 $50 call price on this one. GGN-A at 26.16 I am not in a hurry to sell most of these, as nothing comes close to this yield in the AAA universe, which is pretty tiny. I haven't owned GDL-A because I don't consider the Deal Fund common shares a great vehicle for NAV stability. And now it is at a level where a call looks certain. However, that yield will still tempt many, I feel the same about GCV and GUT, as convertibles are risky, junky critters and utilities are too narrow an investment field, IMHO. It costs these folks at least 3% to issue a replacement preferred at a lower yield, and the yield has to be enough lower to make it attractive to the management while still drawing bidders. I clock this in at closer to a 5% number, which would be around $26.25 on the preferred. So, I am holding all of the preferreds selling for less than $25.50 (I like to give myself a lot of wiggle room on these). However, there is no guarantee that the fund cos. will think the same way I do. At some point, they may determine that deleveraging themselves totally at $25 may be the best investment they can make. They've never, ever decided that in the past, but strange things can happen. But I would certainly not buy them above par.