TSX:AX.PR.E - Post by User
Comment by
InvestSmarteron Jul 15, 2024 11:58am
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Post# 36133041
RE:AX preferred shares a buy?
RE:AX preferred shares a buy? AX Prefs are treated like Debt to AX's balance sheet.
AX is about to announce large asset sales, which is great for PREF holders. AX goal is to reduce debt. The PREF debt is some of AX's most expensive debt. It would make sense for AX to SIB back some of this debt at even a 8% yield (much higher than $18/unit). Historically, AX Pref's trade at $22+ when the yield was much lower.
tylerreddick wrote: They are yielding almost 10%, just wondering if that indicates any concern from those types of investors?
Thanks for any insight.