Ackman stating commons outperform JPS in almost every scenario is so true.
Agreed. The preferreds "make assumptions" that dont hold water, as their justification for preferreds.
1. Preferreds will get "retro" dividends. No. They are non cumulative preferred. No retro dividends for preferreds.
2. They allege there will be a "conversion" from preferreds to commons. Sure. Just push sell and buy commons, but "who" do you expect to cough up big money to donate to preferred shareholders for their "wisdom"? Nobody. Not the commons, who vote for a BOD to represent their interests. Not the courts. They will follow established laws, not "make up" bonus conversions.
3. "Dilution"..this is still another "preferred pipe dream" that cant happen. We have been over this one. If dilution was the answer, it would have already happened. The capital raise wont come from dilution, it will come from the courts refunding shareholders stolen money. If the money stolen is not refunded, and the US government continues on its path of robbing us blind, then both the preferred and common shareholder go belly up. The US government does not want us to go belly up, it adds over 5 trillion (for fannie and freddie) the the deficit, and its simply political suicide to increase our debt 5 trillion MORE and be on the hook for still more if our economy sours.
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