Running_Man
Thinks s/he gets paid by the post
- Joined
- Sep 25, 2006
- Messages
- 2,844
The conversion date in October 2018. There should be 5 more dividends of $1.21875 remaining on this preferred and then it converts (almost assuredly) into common at a rate of :I knew it was convertible, but I didn't think conversion date was anytime soon.
KMI $25& Below: 1.8142 shares per share of preferred
25-30 : 1.6667 shares per share of preferred
35 & Above: 1.544 shares per share of preferred
Based on the closing price of 19.67 the present value of the preferred shares is $41.95 @ 43.50 the preferred is overpriced by $1.50. Basically this is a long term option on KMI @ 35 for 15 months as over 35 you are making money on the stock. Personally I loved this investment though I have been out of it for a while.
and don’t find it particularly interesting at the present time. By the way present value at KMI 25 = 51.02 @ conversion and 59.70 @ 30. If stock were to fall to 15 preferred value falls to 32.88. All those values include the values of the remaining dividend. following is value you get at conversion for the preferred
15: 27.51
20: 36.28
25: 45.36
30: 50.00
35: 54.04
40: 61.76
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