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To: Dale Baker who wrote (103101)8/8/2011 3:04:20 PM
From: Jurgis BekepurisRead Replies (1) | Respond to of 118717
 
Buying back pfds is always easy sometime later.

Yes, at 10-20% higher prices. Hmm, that's like 1.5-3 years of pref yield... ;)

Recouping losses in them can take years, as we know.

There are only two issues when this would be a problem: treasury rates rise and your pref coupon becomes worth-less; company stops paying and your pref becomes worthless. Other than that, I am fine holding them for years.

Are you really 100% confident in the credit markets with stocks reacting like this?

I don't give a rat's ass about credit markets. If prefs go to $10 on $25, it's gonna be even merrier.

KIDS DON'T DO THIS AT HOME! :)



To: Dale Baker who wrote (103101)8/8/2011 3:13:08 PM
From: JibacoaRead Replies (2) | Respond to of 118717
 
And one problem when yo loose 40% is that you will need to gain back 66% just to get even.:(
And once you loose 50% you then will need 100% gain to just get even.
That's a hard lesson that I learned over the years. <g>

Bernard


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