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

To: rllee who wrote (52682)	10/31/2013 2:33:48 PM
From: Wallace Rivers	Respond to of 78710

Better? Only time will tell, that depends on price action of the common. Safer? IMHO most definitely so, they are cumulative and redeemable, and higher on the food chain than the common. As with any interest rate sensitive instrument, if rates spike, that will most likely result in downward price action.

To: rllee who wrote (52682)	11/2/2013 8:34:30 AM
From: Mr.Gogo	Read Replies (1) \| Respond to of 78710

Hi Paul, I read a few articles a few months ago about DLR on seeking alpha. Usually whatever you read there if you do the oposite you will do fine (in my experience :) Just for fun I put some buy orders at 40, now that they are approaching execution I opened the income statement of DLR and what to see. They earn 34 cens per quarter and paying 78 cents. They sell 15-20 million shares per year. The difference between this and Madoff is they have an underlying business. 3.5 bil paid in capital + 4.27 bil total debt is what went approximately in the company and all this is earning 200 mil of net income. 200 mil / 7.8 bil = 2.5% return on the invested capital. And this is a commodity business. You cannot dictate prices to Google or Amazon. Unless they find more smaller customers who cannot build their own data centres. In this business you need to depreciate the assets as they become obsolete very fast. I think they have a fair depreciation rate. Good Investing, G