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Author: dlocke Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75797  
Subject: Preferred Stocks Date: 7/26/2000 4:02 PM
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I saw the Fool dismiss preferreds as "not for the individual investor" but some of them look very attractive for the bond portion of my portfolio. I see a couple of GMs that earn 8.9 and 9.4% respectively.

I'm trying to list the points I need to clarify before I buy a particular prefered.

One major item is the call price. I believe it's generally 25 and it's a good first guess when the stock is in the mid 20's.

Another is when the stock is callable.

Of course, the financial condition of the underlying firm is essential.

A few other general questions, in no particular order.

What would lead to a wide variety of returns on preferreds from a given company? PubSt (whoever they are) preferred range from 9.1% to 11.2%. Maybe some are convertibles?

The Schwab bond desk said these were equities and I could buy them on line. I've never found the ticker symbols for them, though. Do these have ticker symbols and where can I find them?

That's all the questions I can think of. I would appreciate any answers that some more experienced preferred investors can supply.

Thank you
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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 23680 of 75797
Subject: Re: Preferred Stocks Date: 7/26/2000 4:22 PM
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Greetings, Dlocke, and welcome. You wrote:

<<I saw the Fool dismiss preferreds as "not for the individual investor" but some of them look very attractive for the bond portion of my portfolio. I see a couple of GMs that earn 8.9 and 9.4% respectively.>>

TMF rarely says any kind of investment is inappropriate, so I would be very surprized if you actually saw someone from TMF make such a comment. Perhaps you read that as a statement from a poster on the message boards somewhere?

<<What would lead to a wide variety of returns on preferreds from a given company? PubSt (whoever they are) preferred range from 9.1% to 11.2%. Maybe some are convertibles?>>

Yes, convertibility would be a valid reason.

<<The Schwab bond desk said these were equities and I could buy them on line. I've never found the ticker symbols for them, though. Do these have ticker symbols and where can I find them?>>

Do a search by the company name and you should be able to find the ticker.

Regards..Pixy

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Author: mdorsey One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 23689 of 75797
Subject: Re: Preferred Stocks Date: 7/26/2000 8:45 PM
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Symbols vary from broker to broker. Some use "+" like BRE+A, or maybe "_" like BRE_A, or even a " " like BRE A. Also can be BREPA. Good luck.

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Author: dlocke Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 23690 of 75797
Subject: Re: Preferred Stocks Date: 7/26/2000 8:45 PM
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I would be very surprized if you actually saw someone from TMF make such a comment.

Ya know, I can't find it now. I'm sure I didn't dream it, but I better withdraw the comment. It looks like the comments in their primer on preferreds were updated in Feb 2000, perhaps it was before that.

Do a search by the company name and you should be able to find the ticker

Search where? I tried http://quote.fool.com/lookup.asp, looking for General Motors and got back only GMH.

Thanks









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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 23711 of 75797
Subject: Re: Preferred Stocks Date: 7/27/2000 9:52 AM
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Dlocke asks:

<<Search where? I tried http://quote.fool.com/lookup.asp, looking for General Motors and got back only GMH.>>

Good question. I guess as Mdorsey pointed out, you will have to determine how a particular service or broker lists preferred shares. Having never purchased any, I never really gave it a thought. I suggest you call your broker to see how they list the shares on their quote service, and then use that.

Regards..Pixy


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