Ordinarily, preferred stocks aren't bought for capital gains but for their returns and safety. So if it's called, it's going to be $25. What's the problem? The high rate of return should tell you something. Nevertheless,
HLM has a pretty good track record so far.
I think my initial explanation was valid. On thinly traded stocks like HLM, there's downward pressure on
the price when a holder decides to unload in more than the usual quantities for whatever reason. And
then maybe a panic reaction, i. e., holders don't know what's going on and sell.
Hillman Group Capital Trust, 11.6% Trust Preferred Securities; coupon rate, 11.6%; annual amount,
$2.90; maturity date, 9/30/2027 -- one of the consistently best returns of any listed preferred stock or any
other financial instrument for that matter.
There isn't that much activity (trading) in the stock, and when someone wants to unload, it puts downward
pressure on the price. In other words, there probably isn't a company event that is affecting the price.