I don't like them. Your dividends may be "guaranteed" at a certain percentage but unless it's participating stock, you can lose out when the dividends declared are greater than what is owed to the preferred shareholders. Also preferred stock is usually "callable" which means the company can force you to sell your shares back to them whenever they want. You'll get the current market price but you won't have the option of holding onto the stock as long as you like. You will also have no voting rights which you would have with regular stock.
They might be technically callable, but they only get called if interest rates drop. In the current environment of rising rates that's not much of a concern. Moreover, given how low interest rates got in the last year if a company was going to call their preferred shares they would have already done it. And who cares about voting rights? When has a retail investor voting their shares ever made a difference in anything? Preferred shares can have a place in a portfolio designed to generate income but they should probably be avoided in a growth focused portfolio unless the investor really understands what he or she is buying and why they're likely to rise.
So who else is buying BBRY before tomorrow's earning release
Or short it?
Well, you can join the rest of the crowd though I personally would take the contrarian view this time. the upside to the longs is much better, as 1st q earning that surprise, may result in some serious short squeeze.
personally I dont see a short squeeze on the horizon. The cost per share of holding on to the short position is cheap enough that many people will be willing to pay it rather than take a loss on the short. They are just waiting for one bad piece of info to hit it. I am sure some people will get out of their short position if there is a nice earnings report but I dont think enough to cause a squeeze.
It's ironic ( painful ) to see what ppl on this thread have said and though about $AAPL and where it's up to today.
What are you smoking? No one said anything wrong about aapl, and my prediction was head on.
Anyone know what time the earnings are expected to be released.Yes I know pre-market, but approx what time?
Who else is holding fb and loving the news right now?
What happened?
