Is Your Preferred Stock About To Be Called?

Mon, 04/23/2012 - 07:00 EDT - Seeking Alpha

By Doug K. Le Du:Huge demand for high quality [1] preferred stocks has pushed up market prices. The sudden increase in demand has been caused by a large number of calls, all occurring within a very short period of time. So far this year we have seen seventeen high quality preferred stocks called by their issuing companies. That has to be a record pace [2].These calls have pushed a large number of suddenly cash-rich preferred stock investors into the marketplace as buyers, all looking to replace their called shares at the same time, hence pushing up prices. With this increase in market prices, many preferred stock investors are currently sitting on significant, but unrealized, capital gains in their preferred stock portfolio, leading many to wonder if they should pocket those gains by selling now.If the issuing company decides to call (redeem) your shares, the opportunity to cash in those gains evaporates instantly,Complete Story »

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Is Your Preferred Stock About To Be Called?

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