Given that this is the ACG board and all... Is there any reason to think that ACG is susceptible to the current insanity in the credit markets? It occasionally gets whacked when things go into the sell-everything mode, and I've been using those dips to buy a little here and there.
Good question. I wish I knew the answer. I do not (although pennies on the dollar would seem to be a good guess). That is why I sold issues I held with similar characteristics (Lehman being the common thread). What once seemed relatively safe no longer does, at least to me. Transparency issues. Just because Penney's has been around for 106 years doesn't mean it'll be here for another 106. Lehman could close up shop tomorrow, if you believe some of the rumors. At this point I tend to lean strongly toward the side of doubt and caution. FWIW, I do shop at Penney's occasionally when I need to score some husband points; I notice their "sales" run pretty close to 360 days a year, but the merchandise is a distinct cut above Pall-Mart or Terget. Good luck.
I was just minding my own business one day and came across a post by "gaboystock" about 3rd party preferreds. at that time the junk bond fund(PHK) and the financial fund(FF) were going down, CD rates tanking, so I went over to quantumonline and took a look.
what I came up with is JBR(Select Asset Inc.,7% Corporate Backed Callable Trust Certificates, J.C. Penney Debenture-Backed Series 2006-1, Class A-1, price to the public $25 per certificate. The underlying securities are the 7 5/8% Debentures due 3/01/2097 issued by J.C. Penney Corp. (NYSE: JCP). The certificates pay 7.00% ($1.75) per annum distributions semiannually on 3/1 & 9/1 to holders of record.......)
currently own shares with a cost basis of 19.37. 1.75/19.37=9%
if I can add shares and reduce the cost basis, I will.
need some socks or underwear? shop JCPenny!
now, here's a question----
"Select Asset Inc. is an indirect wholly-owned subsidiary of Lehman Brothers Inc."
what happens to Select Asset Inc., JBR, if Lehman goes under!???????!!
400 plus on the Dow. divy cows did pretty well today. With price appreciation Verizon has left 5% club and BP is on the brink of leaving. GE never quite got there but I took a nimble anyway... PFE and ED still firmly entrenched, but with a few more days like today they'll be history as well
which is a wonderful thing when you already own them.
and thx again to phage and company for all the sobering analysis.
ACG is a great place to park cash, if you have the patience to buy it on the occasional selloff. I loaded up last August when it did that one day plunge, so am nicely in the money on the share price plus getting the dividend. Unless it drops back below 7.80, I'll keep it and let the income stream continue. Once the stock market has settled..whenever that is, I'll sell and move back into growth stocks big time. That's just how I play it. Has worked for me well over the long haul, since the late '90s.
adding BP to list of divey cows
anyone else care to contribute?
The 5% club is getting bigger with every daily disaster. Not sure if these stocks have hit bottom, but if you're not beginning to nible, why even bother investing?
And think how smart you'll look when you're dead and your kids inherit a portfolio with ConEd, Verizon, Pfeizer, GE, and British Petro
they can do a lot worse
here's the long chart for ED--
I put in some support levels. you can zoom in on time, add RSI and Bbands for a closer look.
point is, instead of dumping, say $10k in there to get the div., think about starting out with a nibble and then buying the dips over the next few years, in an effort to keep the cost basis low.
we have no idea where any of this is going, but we can kind of patiently play it. the ebb and flow theory of building a position.......