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

To: E_K_S who wrote (39750)	10/20/2010 5:32:23 PM
From: Jurgis Bekepuris	Respond to of 78567

EKS, I agree that there is a single company risk for MHR-C and investment should be limited, especially since the pref is trading at par and can only go flat or down (with call date being Dec 2011). If MHR manages to mess up, this will drop like a stone. Unfortunately, there are not that many attractive income investments at this time, so I am left holding remainders of AEH, IDG/IGK, FR-J/K, NRF-A/B and MHR-C.

To: E_K_S who wrote (39750)	11/28/2010 6:19:50 PM
From: JHalperin	Read Replies (1) \| Respond to of 78567

Hi EKS I too have MHRPC. It is currently 1.8% of my portfolio and I'm thinking about increasing it to 4% or so. Ordinarily this would be out of the question and doubly so with a small cap E&P. Yet, I think this is a unique opportunity because of the outstanding yield, no PPS premium (issue is callable 12/11) and most importantly, I've read that the estimated net value of the company is significantly higher than book which gives a safety cushion for preferred holders. The recent strength of the common is what's given me this idea. A thought is that as long as I keep close tabs on company news and the common PPS I'd be able to reduce my holdings quickly if negatives started to arise. The only thing that gives me pause is the risk of company specific shit hitting the fan suddenly with MHRPC gapping down hard. I'm not much concerned with macro events as MHRPC has been remarkably stable. It's the "company specific" risk of a hard gap down that concerns me. Your comments appreciated. Thanks, Joel