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Yellow Media Inc T.YLO



TSX:YLO - Post by User

Bullboard Posts
Comment by MiningMonsteron Sep 17, 2011 12:42pm
290 Views
Post# 19053959

RE: YLO.PR.B

RE: YLO.PR.BGuys be careful about analyzing the prefs!
ONLY the Series A prefs will be converted for sure!  You should switch from B, C, D and take cover in the A's....
Only the YLO.PR.A holders have the power to force a buyback, the B, C, and D prospectus have no such terms included!! So the company will need to convert the A shares or be faced with a forced buyback at $25.00!! 
To put it another way- imagine worst case scenario, YLO cuts all dividends to common and prefferred holders to zero.  If you are holding the B, C, or D prefferreds, you will get zero dividends and the company has no obligation to convert you to common shares! So you will be sitting there for years just hoping as if you are a common shareholder.  I think this is why the A shares stand out so much, they are currently trading nicely in the money compared to the common shares conversion ratio, and the power is with the A shareholders as the company will be force to convert these shares to avoid a full on $25 redemption.  There is no such obligation with the B, C or D series prefs.
Between all of your options including the common YLO, the series A preferreds are the safest way to play this in my opinion.  They sold off with the other preferreds, but they are in a class of their own.  Bought some last week and hope to buy more as long as the market disconnect is available for exploitation!  Good luck guys, do your own DD and you will see the value in the series A prefs, a great opportunity within a handful of opportunities IMO. Good weekend!!
Bullboard Posts