What you have been doing is presenting your side of an issue. you may very well be correct in your assessment, but my expertise and experience says not. I have no doubt that you will continue to make money with the common, but the risk reward payoff on the preferreds is too great to ignore from my perspective. They are selling 5% to & 7% of the retirement value and the company will have to deal with them. They are still senior with respect to dividends even if they are not cumulative, and 1 dividend payment will represent a 200% return against my cost basis. Even at these prices for the common to get 1 years worth of dividends the preferreds will will realize a 133% return. They are senior with respect to distribution and a dividend is considered a distribution. in addition, a financial company without dividends cannot maintain sharehokder interest. Loss of dividends was not approved, only the cumulative feature is in question. Now the larger question is the one of management and honesty, Did they vote retired shares to get ttheir majority? If so, these shares are worth $25 plus 5 years of accrued dividends. I understand your point, I see how you came up with it. I just see it from a different perspective. So what if it takes 7-10 years to realize a 12,500% return. thats still 1250% per year on the long side. GOOD LUCK
I am not presenting my side of the issue? I am just posting the SEC docs which you dont seem to get! I am trying to save you money!
Company has no obligation to pay preferred stockholders anything unless company voluntarily decides to liquidate!
You should talk to the company and re -read sec docs.
The prefereds are not senior to common stock unless their is a liquidation.
Company can pay common stock dividends without paying preferred dividends for ever.
The company would never pay anything to preferred stock holders now that indenture has changed as they would be violating fiduciary duty to common stock holders. My fund would sue the company if they did such!
you will never get paid a dividend unless company volunatrily liquidates. If company voluntarily liquidates, common stock holders, my company included would sue the company.
Save your self some dough. Note I have no position in preferred long or short. Trying to save you money.
If you dont believe me: reread sec filings, reread company conference call transcripts, call the company! They will say what I am saying