Iridium Communications (NASDAQ:IRDM)

TSIF (99.96) Submitted: 10/1/2012 1:38:14 PM

Recs: 1

I believe the 7% you are referring to is a "dividend" on new Class A "preferred stock" they are issuing. It would be "easier" to think of this as "interest" and not dividends from an investing perspective, in that it's paid in arrears regardless of company performance. Sometimes there is a sparate listing for Class A Preferred, but generally it goes to more "highly qualified" investors.

Preferred stock issued puts cash in the coffers for corporate needs that can help all shareholders. It dilutes, however, total share count. It sometimes, (and may in this caes in 2017) convert to common shares. Should the company have solvency issues then those holding preferred would hav a higher likelihood of recouping part of their investment than regular shareholders.

Short answer, this doesn't help the common, or your caps score....... ;)
A 7% dividend on an equity may or may not generate CAPS points. It depends on what the base value of the equity does and how fast and in which direction the S&P moves, as we are scored against the S&P. It does reduce your "cost basis" on paper her on CAPS.

sidiling (98.77) Submitted: 10/1/2012 3:27:50 PM

Recs: 0

Reading all your pitches have taught me a great deal. I must kowtow to your efforts!

TSIF (99.96) Submitted: 10/2/2012 12:17:00 PM

Recs: 1

ReReading my pitches usually gives me a headache! I'm glad you are finding something useful in them!
I can't kowtow to anyone now adays, the knees and the back won't allow it.
I'm expecting you to come up to speed and pick up some of my slack when I disappear "offshore". ;)