Traders Cooperative

[Joe Stocks]

CDRpC - Someone posted on SA that a lawyer looks to be filing for an injunction to stop this merger from taking place as currently structured.

I bought my CDRpC shares just after the announcement at a better yield than the B shares. About a week ago the B's dropped to have a better yield than the C's so I sold half and bought B's. Today the yield on the C's is 14%, and the B's at 12.5%. Took the profit on the B's and replaced with an equal dollar amount of C's. Increased my holding with the profit and have a much better yield. All in a ROTH so no tax consequences. If the C's had the same yield as the B's here as I type they would be $1.55 higher or 13.6%. I even included the bid/ask spread. Both transactions filled better than the bid/ask.

I have increased my position size to about 2.5%. If the lawsuit is filed I expect CDR the common shares to take a hit. Shorted a starter position of CDR at 27.65. I see no reason why the court would not give the preferred the injunction they are looking for.