Callon Petroleum Series A Preferred

[mrmuileh]

Dan:

Take a look at KENM's post of Value Forum at 7 PM on Feb 1. He is touting the preferred of Callon Petroleum, which is currently yielding >10%. Do you have an opinion about Callon Petroleum and/or the Series A preferred? If the company is solid, then this could be a nice candidate for your high yield portfolio.

MrMuileh (Phil)

[dan_s]

I have not looked at CPE in awhile. I will add it to the list for February. It is a small-cap with some operations in the Permian. Based in Mississippi.

[dan_s]

CPE is a very small company, but it does have a good position in the Permian Basin and their production is growing. As long as crude oil prices remain over $90/bbl they should be fine. I think the common stock is trading at close to full value (which could change after I see Q4 results and their year-end reserve report), but the pfd stock with a yield over 10% looks solid.

Dividends are tax deferred since they don't have accumulated earnings and profits for tax purposes.

http://seekingalpha.com/article/1918081 ... urce=yahoo