iStar Preferred Stocks: An Estimated 20% Yield To The Merger Close

Summary

  • iStar is merging with Safehold which provides us with an excellent high yielding opportunity which I wrote about in an earlier article.
  • The merger plan states that iStar preferred stocks will be called providing preferred “G” and “I” investors with an estimated 20% annualized return from now until the estimated call date.
  • Even if the 3 iStar preferred stocks are not called, they will become very undervalued as a result of their improved credit rating.
  • In this article, I will look at what we can expect for this trade going forward and how this trade idea has performed so far.
  • Looking for more investing ideas like this one? Get them exclusively at Conservative Income Portfolio. Learn More »

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Introduction

In my preferred stock research, I am always looking for special situations. These are investments that aren’t dependent on movements in the stock market or with interest rates. They often offer much more certainty than typical investments although they tend

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This article was written by

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Preferred Stock Trader has 30 years experience investing in preferred stocks and bonds. He utilizes a proprietary screening software researching high yield preferred stocks and bonds that are undervalued relative to securities with similar profiles for high total returns.

Preferred Stock Trader contributes to the investing group Conservative Income Portfolio which features investing ideas for undervalued preferred stocks, baby bonds, traditional bonds with the potential for high yield and capital gains. Features of Conservative Income Portfolio include: covered call opportunity portfolio, long term portfolio of stocks and bonds, exclusive articles for members, previews of public articles in advance, macro analysis, and community chat. Learn More.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of STAR.PD, STAR.PG, STAR.PI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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