Difference of opinion is one of the elements of a market. It is a good thing.
"The issue price is fixed and that will cap any real growth."
I agree and would never purchase a preferred over its call price, nor really one anywhere near the strike price. Generally I look for good companies that have had a price hit due to the market, and not because of any company news. Look for 20 or less on a 25 call price, and in the case of GT 40 on a 50 strike. Think of it as a preferred going on sale, and since the dividends I look at are fixed the yield is enhanced while you wait for the preferred to recover.
The nice thing about GT is it is a convertible so it trades like a hybrid bond/stock. GT swings back up to 12-13 the preferred will move to 47-49. It is just the way that preferred trades. Meanwhile you get 7.5% payout while you wait. Last time it took 4+ months and I got two dividends plus 25% capital appreciation. I expect it to happen again this year.
I know this may not interest you, but perhaps someone else will find the above useful.
Don't fight the tape. GT this year may mean Good Timeing.
I will admit i've lost my butt on this stock many times thinking this is the right time to buy.
But, last weeks moves and volume, is bringing me back in.
After hours was not too shabby either.
Input costs coming down: rubber, oil, etc.
Debt restructuring defers any paybacks to 2019 allows GT to accumulate capital, address pension fund underfunding, etc.
Couple weeks back ML raised target from $14 to 16. Last week Deustche Bank commented on postiive nature of GT restructuring and saw a price of $20.
If people are reluctant to buy anymore GT stock (I am) look at GT preferred's GT.A or GT.PA. They are convertible and pay 7% while you wait. Last year picked up some at sub-40 and sold at 50-51. Just picked up some a few weeks ago at low 40's. They move with stock because of the convertible feature.
if this pig moves up, it will have nothing to do with earnings. all the fundamentals are gone, gone, gone. if they just got someone on board who knew what the hell they were doing, it might move based upon an expectations.