The F-S pref has been doing very well since the dividend suspension. Ford looks to have long term survivability and this stock is a very nice one to hold in a tax protected fund like a 401k. Otherwise the tax liability is not worth it since you dont actually receive one but pay taxes on it. Sold half of my holdings at $11 to lock in the profits. If this thing survives they will pay back all the interest due plus it will continue to move back up. $50 par stock, so it has a way to go.
I am long RBS prfds, and always appreciate your insights.
I have a question re the ahl-pa prfds you mention. While the release would imply they are redeeming at par, the share action indicates otherwise.
In Aspen's filing, do you know if it states a redemption price? Also, do you know how many total shares of ahl-pa are outstanding and how they go about allocating the buyback?
I'm not asking you to do the research, just curious if this is info you have handy.
I guess I just never thought about buybacks below par before (except in the case of bankruptcies), but it seems to be becoming a common practice these days. While companies can't buy back their preferreds in the open market(below par), I guess they are free to offer pennies on the dollar to holders of preferreds through these filed offerings.
Given ahl-pa's action, I am suspecting that the market thinks that's what is happening here -- or the buyback represents such a small percentage of shares outstanding that it's not moving the price (other than a brief spike) -- or lastly that it is thinly traded and few people have picked up on this.
Actually, I was wrong, the div on the stock has been suspended, but is cumulative. This is the first quarter it will be suspended and it is a long term play now. If F survives, which I believe they will, these will be senior over the B class shares and common. They cannot pay div on this stock while they work out a new agreement with bondholders.
Ford can suspend the interest payments up to 20 quarters or 5 years. The previous interest will be paid in full once at the time the interest is reinstated. Its a long term gamble that is more of a tax nightmare. Again, I only got in on a small stake but do believe the payoff down the road, maybe 5 years, will be big.
They pay the next dividend for F-PS on April 15th of .81 for each share. I bought this stock for $7.41 and been watching it slowly climb. The dividend is a nice payout and much thanks for pointing me toward this stock. I do not own much, but it appears the dividend is safe for now and going forward.
Congrats on the big payoff today. It has been a very nice month coming off the lows around March 6th.
Nice move genius. You bought a stock nobody wants and div will be differed so you will still have to pay taxes on earnings you wont get. If the company survives, you might make a good return, but the taxes will kill you. They are paying .30 on the dollar to creditors, what do you think this means for you short term?
BTW, this is not the F board, its the RBS message board. Thanks