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Yellow Media Inc T.YLO



TSX:YLO - Post by User

Bullboard Posts
Comment by poneon Sep 23, 2011 8:49pm
369 Views
Post# 19079112

RE: Dividends on Preffered

RE: Dividends on Prefferedmouserman, I think you are only partly correct regarding perception that dividend may disappear.   The other critical factor is that the Series 1 and Series 2 preferreds have poisonous conversion terms to be forced to convert to common shares.   It almost looks like Series 3 and Series 5 are trading in parallel on that, but as I read prospectus Series 3 and 5 cannot be converted to common under same terms.
At this point I agree anyone buying Series 3 and 5 has to consider that the dividend may go away, and recovery in bankruptcy would not be good.    I think both of these are excellent speculations sub $5.    Series 1 and Series 2 are poisonous.   I would short both of those if they get back to $15.
Bullboard Posts