StubbleJumper Posted May 21, 2010 Share Posted May 21, 2010 Hmmm...just looking at Friday afternoon trading, and it appears that ORH-A is up over $26/sh. This thing just paid a dividend, so it's not like the market should be accruing something for that reason. Anybody think that FFH will call them at $26? I can't seem to think of any other reason why it would trade that high (given that you might get called next year at $25). SJ Link to comment Share on other sites More sharing options...
Santayana Posted May 21, 2010 Share Posted May 21, 2010 I was just wondering the same thing. Although aren't they callable this year? Link to comment Share on other sites More sharing options...
gaf63 Posted May 21, 2010 Share Posted May 21, 2010 They are callable this yr., Oct. 20, I believe , same day as div. payout Also the volume has been higher than usual - noticed the volume increase right after last div. cost to FFH would be the same either way , little more than a $1 in div., to $1 more for early call price Link to comment Share on other sites More sharing options...
rogermunibond Posted May 22, 2010 Share Posted May 22, 2010 $26 redemption is a nonstarter. From the IPO prospectus... On and after October 20, 2010, we may redeem the series A preferred shares, in whole or in part, at any time, at a redemption price of $25 per share, plus declared and unpaid dividends, if any, to the date of redemption. [glow=red,2,300]We may not redeem the series A preferred shares before October 20, 2010, except that we may redeem the series A preferred shares before that date at a redemption price of $26 per share, plus declared and unpaid dividends, if any, to the date of redemption, if we are required to submit to the holders of our common stock a proposal for any matter that requires, as a result of a change in Delaware law after the date of this prospectus supplement, for its validation or effectuation an affirmative vote of the holders of the series A preferred shares at the time outstanding, whether voting as a separate series or together with any other series or class of preferred stock as a single class.[/glow] The series A preferred shares have no stated maturity and will not be subject to any sinking fund or mandatory redemption and will not be convertible into any of our other securities or property. Link to comment Share on other sites More sharing options...
gaf63 Posted May 24, 2010 Share Posted May 24, 2010 Ok , Only if you believe FFH wont call them in Oct. would one buy over $25. I think they will, there is cheaper money available. Now , I would be happy if they never called , but dont think that will happen Link to comment Share on other sites More sharing options...
Sea Island Posted May 28, 2010 Share Posted May 28, 2010 A pretty good question about this was asked at the AGM. Someone asked if Fairfax would call these, both issues A and B would be about $100 million, or if they would prefer to hold onto the cash. Prem said at the time that they were considering it but that it would be important for them to maintain about $1 billion in cash. Link to comment Share on other sites More sharing options...
SmallCap Posted June 3, 2010 Share Posted June 3, 2010 Who thinks that they will call the A shares at the first opportunity? Who thinks that they will call the B shares at the first opportunity? SmallCap Link to comment Share on other sites More sharing options...
zippy1 Posted June 3, 2010 Share Posted June 3, 2010 Who thinks that they will call the A shares at the first opportunity? Who thinks that they will call the B shares at the first opportunity? SmallCap Shouldn't they call A shares first before calling B shares? Link to comment Share on other sites More sharing options...
SmallCap Posted June 3, 2010 Share Posted June 3, 2010 I would guess you are right based on the interest rate but I was wondering if they would not call any of them at first opportunity or call just the A shares or call both the A and B shares. I don't own any A shares but I do own some B shares SmallCap Link to comment Share on other sites More sharing options...
zippy1 Posted June 3, 2010 Share Posted June 3, 2010 I would guess you are right based on the interest rate but I was wondering if they would not call any of them at first opportunity or call just the A shares or call both the A and B shares. I don't own any A shares but I do own some B shares SmallCap I was in the same boat as you are. I figured that they probably would not get called at $26 so when B shares hit $24 a few months ago, I sold out. I did try to figure out how much it costs for Fairfax to keep ORH-B around with all the associated paper work to regulatory agencies. But I was stuck as I had no contacts in the industry. That was also one of the reason why I sold. The other one is I had bought at mid-teen when it was fairly cheap. I was not so sure whether it still was cheap a few months back when I sold. I know this does not answer your question. But wouldn't GS-PD offers a better opportunity presently? Link to comment Share on other sites More sharing options...
Sea Island Posted June 7, 2010 Share Posted June 7, 2010 They will definately call the A shares at first chance. I think they will wait on the B shares as the cost to them is relatively light. Link to comment Share on other sites More sharing options...
gaf63 Posted July 22, 2010 Share Posted July 22, 2010 Anyone have thoughts or ideas on ORHpA trading above 25.50/sh?? I believe that FFH will call these pfd's in Oct., and have sold most of my position at these prices. Am I missing something??? GAF Link to comment Share on other sites More sharing options...
StubbleJumper Posted July 22, 2010 Author Share Posted July 22, 2010 Anyone have thoughts or ideas on ORHpA trading above 25.50/sh?? I believe that FFH will call these pfd's in Oct., and have sold most of my position at these prices. Am I missing something??? GAF Nope, I don't think you're missing anything. FFH issued more preferreds in Canada earlier this week at a dividend rate way lower than the ORH-A shares. I'd say the Odyssey preferreds are toast. SJ Link to comment Share on other sites More sharing options...
StubbleJumper Posted August 31, 2010 Author Share Posted August 31, 2010 ORH-A is up over $26 again today. IMO, these will be toast by year end. Might be a good opportunity to head for the exit if anyone still holds them.... SJ Link to comment Share on other sites More sharing options...
mountboney Posted August 31, 2010 Share Posted August 31, 2010 Thanks for the heads up, I saw the price last night but forgot to make a note to myself to sell. I still had a few k shares and just sold after I saw your message. Someone must be doing some indiscriminate buying of preferreds. Link to comment Share on other sites More sharing options...
gaf63 Posted August 31, 2010 Share Posted August 31, 2010 I've been selling the last few weeks, and sold the last today over 26 hate to lose the div. , but agree that FFH should call them this Oct. Link to comment Share on other sites More sharing options...
A_Hamilton Posted September 1, 2010 Share Posted September 1, 2010 I think its a foregone conclusion that all of the ORH preferreds will be called. Odyssey paid $3.5 million to alter their bond indentures so that they don't have to make SEC filings to be in compliance with their bonds, and can instead make their NAIC filings available to bondholders free of charge. Plus, as has been said here, there is cheaper money available. $80 million to call both series of pref's will in no way break the bank given the level of capital at ORH right now. They can call whenever they want, but they need to give 30 days notice...so if they want the call to take effect at the time the next divi is due, they will need to call by Sept. 20th.... Link to comment Share on other sites More sharing options...
nodnub Posted September 15, 2010 Share Posted September 15, 2010 as predicted earlier... Odyssey is redeeming it's A and B preferred shares. http://www.tradingmarkets.com/news/press-release/orh_the_odysseyre-announces-redemption-of-preferred-stock-1171222.html Link to comment Share on other sites More sharing options...
oec2000 Posted September 15, 2010 Share Posted September 15, 2010 I've been selling the last few weeks, and sold the last today over 26 hate to lose the div. , but agree that FFH should call them this Oct. Good timing. I chickened out and sold all of mine at 25.40. Did not think people would be crazy enough to bid it any higher. Still don't get why people paid over 26 to take the risk of a highly probable 4% absolute (i.e. not annualised) loss just for the prospect of getting an 8% annual yield. Another nail in the coffin of Efficient Markets, I guess. Link to comment Share on other sites More sharing options...
ericd1 Posted September 16, 2010 Share Posted September 16, 2010 Did anyone short for an arb? Link to comment Share on other sites More sharing options...
Sea Island Posted September 16, 2010 Share Posted September 16, 2010 Probably tough with the liquidity of these, no? Link to comment Share on other sites More sharing options...
gfp Posted September 16, 2010 Share Posted September 16, 2010 Regarding the post below - The reason it traded above 26 was because of a large circulation email to generally unsophisticated investors - sent by an Agora Inc. subsidiary, Stansberry & Associates. This company was the reason for many of the sudden spikes in the series A pref. To see a similar effect by the same publishing house, look at TPL in mid August. (I'm new here on this board, happy to see such high quality information here) "Good timing. I chickened out and sold all of mine at 25.40. Did not think people would be crazy enough to bid it any higher. Still don't get why people paid over 26 to take the risk of a highly probable 4% absolute (i.e. not annualised) loss just for the prospect of getting an 8% annual yield. Another nail in the coffin of Efficient Markets, I guess." Link to comment Share on other sites More sharing options...
jegenolf Posted September 16, 2010 Share Posted September 16, 2010 Any reason not to sell the B's for more than the buyout price of 25.375? Is there a dividend coming before the buyout or something? I'm not clear why it traded over $25.50... Link to comment Share on other sites More sharing options...
jegenolf Posted September 16, 2010 Share Posted September 16, 2010 nevermind, looks like there is. Someone is really trying to pick up some loose change to pay 25.52 though... Maybe they make 5 cents a share? Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now