Am I missing something on Maguire Preferred A or MPG-PA?

I know that preferred stocks have all crossed the 25.00 holy grail threshold to the downside. I bought some MPG-PA at 16. It is now 13.82. The key elements are that Maguire is overextended and with be forced to sell the company. If MPG is sold, the preferred A will be made whole, right? I know that reits can go on forever paying the dividend and interest by selling non core properties until the market turns back to the upside. MPG-PA is now paying a 14% dividend. This is a dividend that cannot be cut and has to be paid unless they go out of business. It seems the marketplace is betting on the going out of business. I do not buy this theory. They do own a 400,000 sq ft facility that used to house the Washington Mutual Subprime company. That is gone but they still rent out over 9 million sq ft and they can still re rent the 400,000 sq ft. Is MPG-PA irrationally underpriced relative to the risks?

If they sellout the pref'd doesn't become whole unless the new company calls it in.

There is much irrationality in income products right now ... and your assessment seems right on ... the stock would be much much lower if a BK was possible.

Since there wasn't any recent news, I'd say last weeks downfall was just tax loss selling into an illiquid market which is common in pref'ds and CEFs.

Buying some OTM puts and buying the pref'd looks like a pretty interesting hedge strategy.

BTW investorvillage.com has some very good forums for discussion on income securities - look on the "Community Boards". I'm "Valueplay98" over there.