Husky Energy Inc. cumulative redeemable preferred T.HSE.PR.B

RE:RE:RE:RE:RE:RE:Getting Ready to Buy more Preferreds... ~10% Yields !!!

[RagingBull3]

Yes, they are more like Debt.    Like I said, think only reason they are called shares is because the company has the right to "suspend" the dividend.    Basically that's the main difference between the Preferreds and DEBT.  

I agree with everything you said below, but I'm just playing the Preferreds only for now.... accumulating.

Husky4000 wrote: They are shares but at the same time are not...They are not entitled to the company equity in the same sense as commons.  Let's say Husky makes 5$ EPS next year and trades at 10 p/e, commons will be at 50$.  16 times current price.  Preffereds are capped. They will never trade at 150$...
If a special divy is declared, it is on the commons. Etc..
So yeah, they are 'shares' but not exactly. I consider them more like debt.  

That said, I consider preferreds an excellent investment since I don't worry a second about their ability to pay the divy.  That company can get a billion$ in debt at 2.85%  in seconds.
Lots of nonsense going on with the common, as it's price like 10 cents on the dollar for assest and like the company will never again make $$
I'm buying both