According to the fly on the wall which is a financial news service there is takeover talk circulating around HOV. Predictably the common is running its up about 13%, the preferred HOVNP is lagging - last time I checked the preferred is senior in the cap structure. If a takeover happened and I have no reason to have an opinion on that subject Im pretty sure owning the preferred would prove to be the smarter move. If the company that bought them was a better credit risk(and that is an assumption Id make) the preferred would rally - remember this preferred is trading at an 85% discount to par. Meanwhile UBS sits on the offer in this preferred so apparently they are not the firm making the wedding between HOV and whoever...
The market is trading lower but the damage is pretty mild, bank stocks are trading strongly - thank G-D for FASB removing mark to market accoutning (does anyone even remember that anymore?) AIG is up 5 bucks a share - what does AIG even do anymore besides replace its CEO every few weeks? REITS are still trading in a very bullish fashion I bought a cheapy reit this morning - we'll see how that pans out. TECH is weak with the exception of RIMM - just another 5 bucks until it gets back to the price where a certain bald commentator said gotta buy it (and thats before the massive rally we have just witnessed).
ANybody reading anyone??
JB
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