A PM stated I left out important facts.
As mentioned earlier, Adams and Brewer were buying the preferred, SMRKP. I began buying at $.25. Dividends were reinvested in more SMRKP until the buyout by A&B. It ended up being one of the best investments I ever made. How good?
The original liquidation preference of SMRKP was $25 per share, plus accrued and unpaid dividends, but as at June 30, 1996, the liquidation preference had been reduced to $9 per share. A final $1.50 was paid in mid-2000. SMRKP then converted in common on April 30, 2004.
Before someone asks, I did not keep up with amount of SMRKP dividends paid. it was cumulative from Day 1 and it took some time for SMRK to begin generating cash from asset sales and litigation. The initial payment obviously eliminated my purchase price by several times.
I am interested in the answer, but more interested in finding new deals. ;o)
