RE:This courtesy of navgodDonwaan wrote: ...pref shareholders will have the option of redeeming their shares for $15 on Nov. 1st (at the time they were trading under $14 , now trade closer to $15). As we approach the extension date management will have to offer a very aggressive new pref rate to prevent a complete redemption of the prefs. The combination of a very high pref rate and partial pref redemption could drive the sp of the capital shares towards their NAV.
This also courtesy of NAVGOD -- two points 1) have a email into brompton to clarify if the 8.5% pref rate is fixed for 1 or 5 years if the latter it's a steep hill to climb for the capital shares and 2) in response to my query on the 60% cash level the portfolio manager explained it was the by-product of an option strategy to make sure the value of the pref shares was protected going into the extesion date. Brompton is doing everything it can to try and avoid a massive retraction of the pref shares and a scenario like FTN a few year's ago. I hold a million+ dollars worth of the prefs and have not decided wheather to redeem or not. I have also tried to short the capital shares without success. GLTA