| SGM Publishing Copyright 2006-2007 |
| The Yield Hunter |
| Let's make some money and sleep well at night |
| Updated 6/3/2008 |
In Our Chicken Investor Way We are a Buyer of Public Storage Preferreds (Continued
from Home Page)
June 3, 2008
As such we have taken a position in PSA Series X (psa-px on Yahoo). As is the norm we have put less than 1% of our
portfolio into the issue---but we consider it a rather permanent type holding.
Here is our logic on buying this particular issue of preferreds when there are 20 issues or so available from Public Storage.
First of all the yield---6.45% coupon----7.6% current yield.
Secondly it is callable after November, 2008 at a price of $25.00----given the current price of 21.30 that gives us upside on
the calling of 3.70/share. Of course this is dependent upon interest rates at that time and it may not happen for some
period of time---but it will happen and we like the added upside it gives us.
Lastly, PSA gives us some pretty good safety, we believe, as we want to maintain our capital.
With this purchase we are back up to 25-26% invested and looking for more constantly---and carefully.
from Home Page)
June 3, 2008
As such we have taken a position in PSA Series X (psa-px on Yahoo). As is the norm we have put less than 1% of our
portfolio into the issue---but we consider it a rather permanent type holding.
Here is our logic on buying this particular issue of preferreds when there are 20 issues or so available from Public Storage.
First of all the yield---6.45% coupon----7.6% current yield.
Secondly it is callable after November, 2008 at a price of $25.00----given the current price of 21.30 that gives us upside on
the calling of 3.70/share. Of course this is dependent upon interest rates at that time and it may not happen for some
period of time---but it will happen and we like the added upside it gives us.
Lastly, PSA gives us some pretty good safety, we believe, as we want to maintain our capital.
With this purchase we are back up to 25-26% invested and looking for more constantly---and carefully.