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

To: rllee who wrote (40310)	11/29/2010 2:18:20 PM
From: E_K_S	Read Replies (1) \| Respond to of 78594

Hi rllee - Re: MHR-pC On my Schwab Street Smart Pro platform as of 11:00 am PST I show 6,400 shares traded all at $25.00. The company from time to time will issue more of these shares to the market at $25.00/share as stated in their recent prospectus. Therefore, I doubt the issue will ever trade higher than $25.00/share and if it did, it would be for a very short period. You would have a small capital loss if you sold shares above the PAR price. There is not enough volume or price movement to "trade" but I did notice that there was untypical price movement before AND after the ex dividend date (now ex on the 15th of each month). The monthly dividend is $0.21/month. If you buy the stock for $25.00 before the ex dividend date, you should be able to sell it at $25.00/share after the ex dividend date (it goes back to $25.00/share in about three trading days). Therefore, you might be able to "scalp" 0.8%/month (or another 10% per year if you were successful in doing the scalp each month over 12 months) on this dividend capture. To me it's not worth the effort, it just may be a one month fluke and you would have to trade in size to net anything worthwhile. For me, this is a good alternative to bond and/or money market funds (you must understand the specific stock risk!) for parking funds at least though 2011. I plan to buy more shares next week (at least 3 trading days prior to 12/15/2010). EKS