Mulligan
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- May 3, 2009
- Messages
- 9,343
Preferred Stock Investing-The Good , The Bad and The In Between
Jim, we complain about low preferred yields now, well they were even lower when this was issued in the 1950s. It went to market with a 4% yield. And it is so under par because there is almost a zero chance they ever call. Its like an emotional attachment as it and CTWSP were issued when the company originated.. They have had a bunch of preferreds over the years and called them all except the small original two. Its only a couple hundred thousand dollar market cap preferred. They could pay it off with the petty cash fund. Their bonds are A rated and they have had 48 years of consecutive dividend increases on the common. I just think they would feel calling it as equivalent to selling your mother into slavery.
Mulligan, what is the story with CTWSO? Why is it trading so far under call price?
Jim, we complain about low preferred yields now, well they were even lower when this was issued in the 1950s. It went to market with a 4% yield. And it is so under par because there is almost a zero chance they ever call. Its like an emotional attachment as it and CTWSP were issued when the company originated.. They have had a bunch of preferreds over the years and called them all except the small original two. Its only a couple hundred thousand dollar market cap preferred. They could pay it off with the petty cash fund. Their bonds are A rated and they have had 48 years of consecutive dividend increases on the common. I just think they would feel calling it as equivalent to selling your mother into slavery.