Event-Driven Special Situation: Busted Preferred Equity to Keep on Your Short Radar
Unpacking the Volatility and Valuation Challenges of a Busted Preferred Stock Amidst M&A Rumors
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In this week’s post, I will review an interesting under-the-radar situation that has seen some wild price action following headline M&A rumors. The company in question has almost no sell-side coverage and its publicly-traded preferred stock appears to be held primarily by retail investors—a situation I often find ripe for mispricing.
However, the company’s small size does mean that liquidity in these securities is quite limited and only suitable for small AUM investors. This is NOT actionable for anyone with significant size. As such, I’m going to provide limited details in this open portion of the write-up.
Lastly, I will take a break next week from my posting schedule and resume my regular weekly write-ups on June 14th. Importantly, I will also be increasing subscription pricing by +14% thereafter. Anyone subscribing before then will be locked in at today’s pricing.
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