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OT: My two cents on the current Stock Market.

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Old 07-26-2002, 03:36 PM
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I will see what I can't find out for you. What puzzles me is this. You say it has an annualized return of 8.7%but pays a dividend of $.54 and has a return of 76%. This does not compute!
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Old 07-26-2002, 03:40 PM
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As I suspected this is a preferred stock. My suspicion is you are off by a decimal point in its price. Preferred are generally offerred at $25 per share and don't fluctuate much in price. If they do it is due to underlying fundamentals having deteriorated. The 8.7% is a stated dividend paid either quarterly or semi-annually to the share holder of record. Sorry to disappoint you.

Last edited by Shane; 07-26-2002 at 03:44 PM.
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Old 07-26-2002, 04:03 PM
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No really there is no mistake on the decimal point, you may be able to give some insight as to why the stock price has deteriorated in the past 3 months from $9.00 to $2.80. Maybe it is a poor investment idea, maybe not. It certainly is worth checking, but I will guarantee that dividend, my father has collected three of them with this stock in his IRA. If you can give me some further insight that would be fantastic. There is also CNC-PRG, CNC-PRT, and several more of these preferred stocks. Thanks and good luck.
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Old 07-26-2002, 04:34 PM
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jspeeddemon,

Okay my man here ya go. Just did some research on Bloomberg for you. It is a preferred issued by Conseco at $25.00 on 8/19/98. They issued 20,000,000 shares. It is issued against their Life and Helath Insurance Division. It has a fixed dividend of 8.7% payable quarterly. It is rated by 3 ratings services as follows:

Moody's Caa3
S&P CCC
Fitch CCC

This is in MAJOR JUNK BOND STATUS! Although it is a preferred stock it may also be referred to as a baby bond. This is serious HIGH RISK! I hope this helps. As with UT I cannot make any reccommendation as it would be in direct conflict with our clients rights.
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Old 07-26-2002, 04:48 PM
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Asked my broker about it, and he said he doubts it will pay a dividend again.
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Old 07-26-2002, 05:02 PM
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Thanks, I was more looking for info that I could not seem to obtain. Thanks for the info.
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