22thoroughbred

Capital Crossing Preferred Corp: Too Cheap?

I read both filings several times this past week-end and I agree, IF Lehman Bank decides to take in the preferred as an asset than holders of CCPCN would become creditors of Lehman Bank and probably get nothing and Lehman Bank would have all the assets of Cap Crossing as well as the small amount of liabilities which would help their tier 1 capital and do nothing for CCPCN holders, that's worst case scenerio.

Capital Crossing Preferred Corp: Too Cheap?

Mr Research man, you say :
"how a sale to another company while under distress or receivership won't translate into the transfer of preferred into a less valuable parent company preferred" So you believe the FDIC or OTS would sell a troubled asset to a bank that is in worse shape< does that make sense to you on any level? Sale to another institution, sure, but a weaker one, why?

Capital Crossing Preferred Corp: Too Cheap?

WideMoat, I think that language is standard and really pretty obvious, if the financials of the bank are bad and they have no cash the dividend wouldn't be paid and they would default, however as BDH so eloquently states, that is now more perceived risk rather than actual financial risk...

Capital Crossing Preferred Corp: Too Cheap?

WOW, what a find. I think if the name weren't associated with Lehman, if it was any other name it would be trading in the mid - high teens, I just wish I had a financial advisor that pointed out opportunities like this, i'm sure if I called my broker he would tell me all the reasons not to buy and than we would watch it rise to $20 by late this year. I agree, this looks like an excellent buy and if they are allowed to sell it than it should price at comparable paying preferreds around $18-$20. Thanks for the heads-up.