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

To: Michael Burry who wrote (2669)	12/5/1997 1:57:00 PM
From: S. Thomas	Read Replies (1) \| Respond to of 78595

A "junk" convertible preferred stock yielding 14.5% I have followed Family Bargains preferred over two years, and over this time the company has paid regular cash dividends on the preferred even though reporting losses quarter after quarter. The company owns a chain of retail apparel outlets in the West, SW & Texas. Two things going for this preferred-FBARP. An investor group poured in millions in cash in the last year (and took control) in exchange for another class of preferred stock with lesser priority. Second, the company finally reported a profitable quarter (after preferred dividends). So it may be ready to turn around. This ain't no blue chip or high tech, but 14.5% yield in cash does not seem too bad. Sage opinions sought.