DOMINION CITRUS INCOME FUND T.DOM.UN

Dominion preferred stock

[GoldenGun]

Anyone heard any news on the Preferred shares? If I read correctly, they come due on April 1st. I wonder if the company will offer a rollover or buyout of somekind?

[ob1knob]

You initiated a discussion regarding the perferred shares about this time last year. Read the old replies.   I think the best bet for you is to phone the company and ask these questions.    My personal thought is that the perferred shares are not worth the paper they are written upon. The Common Shares of Dominion Citrus are also worthless in my opinion. The only thing of value is

[ob1knob]

You initiated a discussion regarding the perferred shares about this time last year. Read the old replies.   I think the best bet for you is to phone the company and ask these questions.    My personal thought is that the perferred shares are not worth the paper they are written upon. The Common Shares of Dominion Citrus are also worthless in my opinion. The only thing of value is

[ob1knob]

You initiated a discussion regarding the perferred shares about this time last year. Read the old replies.   I think the best bet for you is to phone the company and ask these questions.    My personal thought is that the perferred shares are not worth the paper they are written upon. The Common Shares of Dominion Citrus are also worthless in my opinion. The only thing of value is

[alkhor]

Making up for lack of posts on this board, are we?

[ob1knob]

Sorry about that.... I've a difficult computer that is touchy at times. If ya buy me a new one I might do a better job at posting in the future?

[GoldenGun]

Thanks for your reply (insight and opinion). I won't buy any preferreds as I think like you but not as pessimistic. I just think they are high risk.  I think they will be forced to pay the accumulated interest on the preferred. That's a nice chunk of money!!!. As for a complete re-org of the trust for April, I doubt that will happen. They will have to come out with circular or

[ob1knob]

"I think they will be forced to pay the accumulated interest on the preferred. "Read more at https://www.stockhouse.com/bullboards/messagedetail.aspx?p=0&m=32039969&l=0&r=0&s=DOM.UN&t=LIST#6UCFHhryMu1mJ88v.99 1st - Perferred (capital stock) pay Dividend (Perferred are not Common, but are recorded in the equity section as part of the companies capitalization structure)

[GoldenGun]

The preferred are trading at $1.30 but at a very low volume.  So there is better value to them otherwise they'd be trading like the Common. The preferred are retractable come April I think btu into what????. Like, how much common you get for one preferred is a question I'd really like to know. Still I think they have to pay the dividend on the preferred othwerwise the preferred

[ob1knob]

GoldenGun,   I have to agree with your thoughts. It's a vexing situation the Directors have themselves in.   The Income Trust Directors have a responsibility to do what is best for the unit holders of the income trust. 100% of their responsibility is to the unit holders of the Income Trust. For them to do otherwise, they would not be working to the interests of the Income Trust

[ob1knob]

  T.DMN.PR.A:TSX BID 1.30 ASK 1.50 <-- As at time of posting this.   From NR:   Dominion Citrus Announces Proposed Settlement With Holder of Series A Preference Shares of Dominion Citrus Limited   The Company has agreed to convene a special meeting of the holders of common shares and Preference Shares (the "Meeting") to consider and if thought advisable, approve by

[alkhor]

At $1.50 and the payout schedule proposed, the preferred shares are paying about 8% going forward. Still there is the risk of Dominion not being able to meet the payment schedule.   Even if you wanted to buy the preferred shares, they are so thinly traded it would be difficult to accumulate any to make it worth while. Right now there are only about 100 on the ask side.

[GoldenGun]

I'm trying to figure out what these are worth assuming you could invest at 3%. Here what I come up with. Any thoughts on this??   Payment Per year Total Year Paid 3% rate Value Now $60,000 1 $60,000 0 1 $60,000 $60,000 4 $240,000 1 1.03 $233,010

[ob1knob]

I'm most interested in seing a revised balance sheet for the trust.    In a nut shell, they are creating a debt obligation out of the redemtion value for the perferred shares with some accrued dividend thrown in (but not all). So, in one respect, DMN could be considered as having had a low cost liability / debt on the books for these last couple years. Given the staggered payout it

[GoldenGun]

Well said obewankenobee