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No. of Recommendations: 4
<<I do have one quibble with what Barry had to say today in his email alert (which I just started getting and LOVE). He said that if Roth was only willing to loan to PGE at 20% interest, why would anyone buy the pfd at 15%? But Roth loaned to Reschke, not PGE, with common shares of PGE as collateral, at $13 per share. I own pfd shares at a 15%+ rate, with a liquidation value 70% higher than what I paid - not common. <<

I am replying to my own post because Barry made a couple of points in an email to me that, while most of us already know them, are worth repeating. Basically his points can be summarized in two words: Reschke & Walden. There is risk that PGE's value may yet be destroyed (the first word) by (my characterization, not Barry's) a rapacious and unscrupulous management with a (continuing with my characterizations, not Barry's) spineless BOD. Another risk is that a reorganization might leave the pfd holders with essentially mezzanine debt in an over-leveraged shell (that would be the second word). The combined chance of one or the other add up to a lot of risk, an assessment I agree with. The probability of each is likely the only place that Barry and I would disagree and that is a judgment call I am not qualified to make, but have anyway. "Stay away" is good advice.
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