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  • The Market Says Morgan Stanley Is 'Junk' [View article]
    What are the bonds yielding? I'm sure they are still not more than 5% and they probably still trade over par.
    Jun 22, 2012. 07:44 PM | 1 Like Like |Link to Comment
  • TCF Financial - Tier 1 Trust Preferred Swap [View article]
    Micheal,

    Great article. The issue I having with preferreds is that they simply jump up past par, which is kind of annoying. I am hoping this one comes back down alittle.
    Jun 22, 2012. 05:57 PM | Likes Like |Link to Comment
  • A Special Opportunity To Get 9% Yield On Resource Capital's Preferreds [View article]
    Yes, the security will be thinly traded. Investors shouldn't expect to buy and sell this security. They should hold it for the dividend. When interest rates rise, most high yield securities will see a fall in price. However, with the recent Fed report, they seem to be pushing back the date which they expect to see a rate increase. In addition, thats another reason why I like this preferred is because it is trading at a discount to liquidation.
    Jun 22, 2012. 11:11 AM | Likes Like |Link to Comment
  • More on the Moody's banking downgrades: A three-notch cut for CS. Two-notch rating cuts for JPM, C, MS, GS; just one notch for BAC. After hours: MS +3.7%; JPM +1%; BAC +1%; C +0.6%. (full statement)  [View news story]
    Don't worry, they'll report record profits, and their stocks will get hammered.
    Jun 21, 2012. 09:30 PM | Likes Like |Link to Comment
  • Get A 12% Yield On Alcatel-Lucent's Preferred [View article]
    Yes it is 25%. I am not sure about the tax being deducted. I do know this is the case for German dividends. So this may also apply to French dividends. Let me check and get back to you on this.
    Jun 21, 2012. 09:19 PM | 1 Like Like |Link to Comment
  • Get A 12% Yield On Alcatel-Lucent's Preferred [View article]
    They are below debtholders, but ranked higher than common. This is the typical case for most preferred stocks.
    Jun 21, 2012. 07:25 PM | 1 Like Like |Link to Comment
  • Loss Of Competitive Advantage Shows Goldman Sachs Not So Golden Anymore [View article]
    Goldman may end up being a good investment since its still trading less than tangible book by a significant margin. I also agree with aholzer, its hard to compare Goldman's business model to Citi's. Citi has a larger discount on many multiples since the traditional lending business still carries a high level of toxic assets.
    Jun 21, 2012. 10:14 AM | Likes Like |Link to Comment
  • Get A 12% Yield On Alcatel-Lucent's Preferred [View article]
    Dividends are paid around 3/15, 6/15, 9/15, and 12/15.
    Jun 21, 2012. 09:59 AM | 2 Likes Like |Link to Comment
  • Get A 12% Yield On Alcatel-Lucent's Preferred [View article]
    Yes the preferreds are convertible, but only at the option of the holder. So investors do not need to convert if they don't want.
    Jun 21, 2012. 09:57 AM | Likes Like |Link to Comment
  • Get A 12% Yield On Alcatel-Lucent's Preferred [View article]
    Sorry, I meant to say the common's dividend was cut in 2007. You are right, LUTHP hasn't cut its dividend. Thanks for bringing that to light.
    Jun 20, 2012. 10:23 PM | Likes Like |Link to Comment
  • Get A 12% Yield On Alcatel-Lucent's Preferred [View article]
    The symbol is LUTHP, its on the OTC market.

    http://yhoo.it/PvCe8L
    Jun 20, 2012. 07:29 PM | Likes Like |Link to Comment
  • Nokia is Worth Less Than $2 On Balance Sheet Projections [View article]
    I linked the the moodys downgrade article, if you search the document, it refers to the inventory buildup. In regards to inventory, I was referring to the entire inventory not just Lumia 900. I was saying that even with Lumia 900s stellar sales, the inventory stay relatively flat.
    Jun 20, 2012. 06:35 PM | Likes Like |Link to Comment
  • Nokia is Worth Less Than $2 On Balance Sheet Projections [View article]
    MJK,

    Exactly. Many individuals cite cash in terms of it belonging to shareholders, while that may be true to a certain extent, management ultimately decides how to use that cash. Management of different companies are known to always try different things before even considering liquidation.
    Jun 20, 2012. 04:15 PM | Likes Like |Link to Comment
  • Get A 12% Yield On Alcatel-Lucent's Preferred [View article]
    Thanks for reading. Yes I have been buying several preferreds lately. However, none of them have the discount that ALU's preferred has.
    Jun 20, 2012. 04:05 PM | 1 Like Like |Link to Comment
  • Walgreen's Poor Acquisition A Concern For Shareholders [View article]
    Paul,

    You are right in regards to WAG drawing in customers through their Rx business. This is a common business model for pharmacy companies. However, lets focus on Europe. What we all need to understand is that even if Europe weathers a recession, the EU will still take some time to recover. Lets compare it to the U.S. recovery, even though its been three years since the bottom of the market, Americans are still not back to pre-recession spending levels, consumer confidence is still low. Now if we look back at Europe, more than likely Greece will default or be kicked out of the EU. Even with the proposed spending cuts and bailout efforts, it will not just be a couple of years before Greece recovers it could easily take a decade. The EU is in a tight spot because they have to bailout these countries. Lets move away from the economic analysis and go back to Walgreens. If consumer confidence stalls in the EU, Walgreen's consumer segment will take a hit. Like you mention, these are higher margin areas for them. Its not a good sign for them when they suffer in this segment.

    I would be more willing to accept Walgreen's acquisition even if they paid a reasonable price, but the thing is they didn't. They paid 10-11x ebitda just to get exposure to Europe, which is falling off a fiscal cliff. I definitely agree that share buy backs are not a good way to go either since they are just a short term fix.
    Jun 20, 2012. 02:01 PM | Likes Like |Link to Comment
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