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

To: E_K_S who wrote (78404)	10/29/2025 9:06:16 AM
From: Elroy	Read Replies (1) \| Respond to of 78425

I think you mean to say the holders of preferred stock can elect (do to the coming change of control of SOHO) to convert their preferred into SOHO, and participate in the sale of SOHO for $2.25 per share. Is that what you mean by "the buyout of the preferreds is elective"? Converting the SOHOB preferreds to SOHO gets you about $18, I posted the number yesterday, because the conversion rate is capped such that you only get about $18 worth of SOHO when it converts to $2.25 cash. The $9/share in arrears represents 18 missed dividends from 2020 ( the company deferred preferred dividends starting in 2020 due to the COVID-19 pandemic). They have NEVER paid back the deferred div payments. But today the company put out a press release halting payments on the preferreds. Are you saying SOHO resumed payments on the preferreds at some point (after Covid), but they did not pay the arrearage before resuming payments? That seems odd. If the preferreds were going to continue to pay 8% they seem like a nice investment at $17 or so, even if they never get paid off in full at $25. If there is some arrearage (which one could expect to receive) then for sure it's a good investment at $17. But you wrote yesterday perhaps the buyer will acquire SOHO, halt the preferred payments, and then never resume the payments, just because they can. I guess the key item which I don't know in regard to the preferreds is what restrictions on the use of cash are placed on SOHO (or the buyer of SOHO) when the preferreds halt payments? The idea that the buyer can just halt the preferred payments and not have any penalty for doing that seems nuts.