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: JHalperin who wrote (40305)	11/28/2010 8:38:20 PM
From: E_K_S	Read Replies (1) \| Respond to of 78568

Hi Joel - Re: MHR-PC I was thinking the same thing especially with their monthly distributions. It would be nice to see the preferred trade higher than Par, then the Market is telling you the current yield is a steal. You can protect yourself from company specific risk by selling common shares short against your position or buying some long term Puts on the common. When looking at the complete picture, it is more likely that these preferreds will be called away in 2011. I am expecting that eventually the company will be sold to a major integrator and all of the preferred shares will be paid off and/or refinanced into the larger company. The key to watch is how the company builds value. Are new wells being developed, is management completing their project(s) on time, are other JV deals being completed (ie. gathering partners) and is the common stock rising in price. So far all of the above can be answered YES! The company continues to show very positive results. EKS FWIW - I will be adding to my MHR-PC in December. I sold my Empire District Electric Co. (EDE) to book my capital gains. Dividend yield from EDE 5.9% to MHR-PC yield 10.25%