Cdx3 Preferred Stocks

Q: Hello all, I was wondering if any of you subscribe to CDx3 Preferred Stock investing put out by Doug Le Du ? I am interested in your opinions as to your results over the past 2 years with this?

A: I read his book (Preferred Stock Investing) a couple of years ago. It's a good read, well written (preferredstockinvesting.com). It's pretty simple to follow I think. I signed up for the CDx3 emails service. It's great and a big time saver if you are looking for someone to screen preferreds stocks for you. There's a newsletter too that's real helpful each month, with lots of new research all the time. Before the credit crisis I was buying and selling, good dividends and capital gains. The book explains how to do this. Since prices have gone down since then the dividend yields on CDx3 preferreds are great. You have to be able to handle price fluctuations in this makret though. I'm buying high yield and will hold until prices come back up (the book explains this too). 10% and up dividends until then, not tied to the current price so the dividends are steady. It's not going to be for every person though. If you need a quick capital gain in this market preferreds are not the place for you. You have to be able to invest for yield now and have the resources and patience to hold until prices improve (which could be a cople of years, who knows). Mainly for dividends now. Overall there is nothing like this service that I am aware of. It's great. You are probably right. They recently had someone at their Google website state how well they are doing with it. This is not my reality. I bought the cdx3 preferreds at about the time they were issued not knowing the market was going to crash. I tried posting MY real results at the cdx3 Google website and the moderator didn't permit it. Now it looks like I am banned from the website...just for stating the truth. If you buy a preferred at 25 and it goes to 8 or 10 bucks a share like citi, Fifth Third, Merrill Lynch, BofA and others...you ain't making money...and for many of these, Moody's has downgraded them to one level before junk. Two have already been made junk. For many of these..one more downgrade and they won't be cdx3 preferreds anymore and will simply be droppped off the list. No promises.

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