I do believe that's how it works...Capital trusts get paid first if some is left over then the preferreds get paid, if there's some left over then the commons get paid. You should be picking up some Cap trusts just in case.
I'm not sure if they could make a deal on the Cap trusts and preferreds at the same time though. I have thought that in the past. Does anyone have any insight on that....Coach,brikk??
This is how I understand it as well. I agree with you the tone of the letter, while positive for the trusts, is bearish for the preferreds and commons. And it's much less bullish for the trusts than many posters here.
With LHHMQ Tading at .21/shr and the J's trading around .08-.12/shr.
Personally I would be buying the cheapest Trust preferreds .
There may be a theory that each class of stock will get something on a staggered basis- but even if that would be the case [ unlikely in my opinion] the trust pref's would get a better payoff.