TSX:BPO.PR.A - Post by User
Post by
CrazyTraderon Aug 07, 2023 8:00am
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Post# 35575915
Easiest Way To Tell If Preferreds Are Probably OK....
Easiest Way To Tell If Preferreds Are Probably OK....If people are still buying the Common Shares, if the Common Shares still have a lot of value (share price/market cap) given by the market and by the balance sheet......
Then the Preferreds are probably ok.
Right? Doesn't that make sense?
Sure back in March 2020 Husky's share price (commons and preferreds) dropped, but people still buying the commons giving the common equity value in the Billions........ It didn't make sense for the Preferreds to drop giving a yield of 16%+.
Commons participate in the profits of the company, it's value is based on the value of the company.
Preferreds are like debt. It doesn't participate in the profits of the company. It doesn't make sense that the share price goes up and down like a yo yo in tandem with the commons.
So, why should BPO preferreds have such a high yield over all the other preferreds out there??
Is BPY going bankrupt?
I don't think so, the market just crazy, just like back in March 2020 with the Preferreds.
All just my opinion/view/thinking