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

To: E_K_S who wrote (38736)	8/9/2010 7:28:33 PM
From: Grommit	Respond to of 78751

RATS! I lose 8% yield and have to find something else to buy. capital gains too. :o(

To: E_K_S who wrote (38736)	8/9/2010 10:21:00 PM
From: Paul Senior	Respond to of 78751

From what I see, EKS, it looks it could become standard operating procedure: If a company's preferreds are callable and they get to par, and the yield is over 7.5%, I'll guess there's a good chance they will be called. Holding a preferred with such characteristics that trades OVER par, that would be very dangerous of course. As for me, with the few individual preferreds I have, if I see that they're trading close to par, I'm selling. For me, it's not worth it holding for just the yield, even if it is 7.5-8.5%. The upside to such callable preferreds is limited when the stock's already so near par. And on the other side, we've seen in a market drop that these stocks have dived indiscriminately, and they could again. Limited upside and unknown-but-possible downside. I don't like that.

To: E_K_S who wrote (38736)	8/11/2010 9:43:13 AM
From: Grommit	Read Replies (3) \| Respond to of 78751

CLP-D strangest thing. the pref stock is delisted and is not trading any more. when these have been called before, I thought that they still traded (at close to par value) and then a few days before maturity, they delisted. but for this one, we have to wait until sept 10 to get our money. what if someone really needed the money? anyway, I cannot reinvest until sept. 10. so I want the stock market to drop 40% between now and sept 10, because CLP-D was 12% of my portfolio. (bought at average of $12.70 in 2008 and early 2009) anyone know -- is this delisting ASAP an unusual case?