Replies to post #155610 on Biotech Values

[zipjet]

Last year, the two classes of preferred stock of a small E&P oil and gas company, MHR, was treated as return of capital.... - I knew this treatment applied to Common, but was surprised to see it also applied to Preferred).

It makes some sense - and follows the accounting. Sale of preferred's are added to the equity capital section.

But the other side is that the common takes first losses.

:-)

ij

[Malyshek]

Peter, thanks for taking the time to respond with helpful information. As it happens, I have been in the MHR-D for a while, having learned of it first from Dale Baker's "50% Gains Investing" board on Silicon Investor. Most of my stock investing experience has been in natural resource plays. My foray into a few biotech stocks is an attempt to diversify. Given my lack of background in the biological sciences, I appreciate the information that you, Dew, and some other posters provide on both IH and SI.