Cemtrex Inc (CETX)

[John Bates]

As of now, I intend to participate in it. It has taken awhile for the rights to show up in my two accounts, and neither of them are quite ready for me to act on it yet. It should be another day or two.

The pluses are 1. You get the 10% dividend for whatever you invest. The dividend isn't guaranteed, but the way the company is going, it looks good now. 2. You get two warrants for every unit purchased that have a 6.3 exercise point. At 8 bucks, that's 1.7 of value for each. If they ever start trading (intended, but not guaranteed), there would likely be a bit of premium as well. So, a 1000 unit (cost 10000), would carry 3400+ value just from the warrants. Plus, you'd get 1000/year in dividends.

The negatives would be mostly related to the low level of liquidity of the Preferred and warrants. Also, I don't know if these units will carry value immediately in brokerage accounts. No one has talked about this, but if you invest 10000, will the unit register 10000 in one's account, or will it be zero until they're trading? In any event, it's likely a bit of a long term commitment.