RE:RE:RE:RE:TA preferred stocks better investment
I do not expect TA to redeem the prf at $25. ; it would be ridiculous to do so (although the management may not agree with me !!)
My point of talking about the pref. into this board is :
- the dividend on the pref is about the same as that on the common. but it is much more safer on the pref.
- On a capital gain basis, if we suppose the situation of TA will eventually improved, the expected gain on the pref is as interesting as that on the common and again it is safer
So my post is not a recommendation to buy the pref per se. It is rather a questionning from my part as to why would an investor take the risk of buying the common stock of TA while he could buy the pref. and get the same benefit with much less risk.