Biz, Jay, following up on this...if you had, say $1000 to purchase WAMU stock right now you could but the following (rounding up):
Stock WAMUQ WAHUQ WAMKQ WAMPQ
Cur PR. .018 8.00 .63 24.98
No. sh. 9259 125 1587 40
Value ((4.32)) $50 $25 $1000
Return (($40,000)) %6,250 $39,675 $40,000
So, what does this tell us? K's and P's are valued essentially the same by the market, H's less so as they have a better risk profile. If U's attain a value of $4.32 then they would share the same assessment as K's and P's, but they don't as they are not preferred. Taking any accrued dividends aside, if we expect U's to hit at least $4.32, then they would be the same investment-wise as the preferreds. If one thinks they could possibly return more than that, then they have a higher return potential for the money. That's the commons versus preferred for you. This is all straightforward math, just thought I'd take a moment to lay it out.
Doc