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

To: rllee who wrote (43115)	6/28/2011 3:53:50 PM
From: E_K_S	Respond to of 78570

Hi rlee - Re: GSTpA I believe the reason for the continued down ticks is they continue to sell shares ATM ("At The Market") and will probably continue until all the excess shares have been sold. The issue goes ex-dividend July 15th so once it goes through one dividend cycle, we should have a better view of how much volume trades each month. There may be an opportunity to do a dividend capture at or near the ex-dividend date. I am keeping my position small to start and watching the daily volume. The MHRpC still trades at a pretty good premium (2.3% over Par). I have 5x more of this one than any of the others (ie MHRpB, GMXRp & GSTpA). I have been reducing my exposure to many of my REIT preferreds but still own FRpK & FRpJ. I would sell more of those but I would have to book a 35% gain and pay taxes on the net capital gains. The effective yield is 7.625% so for now I am better off to just hold those. It definitely is a better place to park my money than my local credit union. DFTpA is one that Grommit has recommended and yields just under 7.8% ( quantumonline.com ) but it is already selling at a premium to PAR so has little chance for capital appreciation. They operate an REIT that invests in Data Centers around the world finance.yahoo.com ). This is a better sector IMO than the traditional real estate REIT. This is one I am looking at to add if it ever sells below PAR. I think the key for all of these preferreds is to diversify into a basket of them which cover several different sectors. So far, it's been a good place to hide in a sour market. The difference this time vs 2008/2009 is that rates are historically low and the next moves are higher. Inflation could also move higher so one must be nimble to fill your basket of preferreds w/ (1) new offerings and (2) offerings that are collateralized w/ income producing assets that grow in an inflationary environment (ie like Oil/NG, minerals, and some real estate). Just watch out for the land mines on the way. EKS