RE:RE:Yields alone would make it CRAZY to short the PreferredsI think there's 3 possible reasons for a potential $25 on the some if not all of the Preferreds.
1. Preferreds demand $25/share under terms of the Preferreds.
2. If Preferreds vote "no", later Cenovus most likely will want to buy out the Preferreds to get rid of the Subsidiary. I would guess $25 or something close to it.
3. Yield are still crazy high. In time, the price of the Preferreds will most likely continue up towards $25 to bring Yields more in line with the LOW RATE/Yield we live in. Yields/Dividends will continue to drop across the entire market in the future....it's related to the Low rates. Any Fixed Rate instruments, like Debt or Preferreds will rocket up in price.
All just my opinion. Could be wrong.
Shazam57 wrote: I'm a total newbie in this arena. How do the numbers add up to being close to a potential $25?