that I am very happy with your service and feel it is a valuable
resource in this volatile market."
- Jerry D.
Welcome to all of the
new CDx3 Newsletter subscribers who signed up during
September. This is your first issue of the CDx3 Newsletter, a free monthly newsletter devoted
to the interests of CDx3 Preferred Stock investors.
To be sure
that you continue to receive the CDx3 Newsletter each
month, please remember to add the following email address to
your email address book safe sender list:
And thanks to all of you who took
me up on my free offer from last month - a free copy of
Preferred Stock Investing to those who subscribed to the
CDx3 Notification Service during September. The offer has
expired but we will definitely be running this promotion some
time in the future, so be sure to keep an eye on the CDx3
Newsletter each month.
I come to you this month
"Quick Guide To
Preferred Stock Investing During A Global Credit Crisis"
If you choose to let this historic
opportunity go by, do so because you feel that it is in your
best interest, not because you are uncertain about how to take
advantage of it.
This report was just published a
few days ago. Please download and read your free copy (PDF,
download now). You'll
be very glad you did.
Thank you for your interest in my
preferred stock research.
I spent several years researching
and developing the criteria that ordinary preferred stocks have
to meet in order to be considered the highest quality - "CDx3
Preferred Stocks." So far, during this 14-month long
global credit crisis of historic proportions, the CDx3 Selection
Criteria not only have a perfect record, filtering out every
failed bank in advance, but have left CDx3 Investors with 100%
of their dividends paid on time and in full every month. The Last
Month's CDx3 Investor Results article shows you the history
of the highest dividend paying CDx3 Preferred Stocks - the CDx3
Hall Of Fame - including the highest payer ever, which was just
issued during September 2008.
While Preferred Stock Investing
provides you with the information and resources that you need to
implement the CDx3 Income Engine entirely on your own, let's
face it - many are going to want someone else to do the work and
just email them when a buying or selling opportunity comes up.
That's what the CDx3 Notification Service is for. And now, in
addition to the individual subscription, we are offering
group subscriptions to the CDx3 Notification Service. The
Special Announcement article explains the new group
subscription, how it works, pricing and provides a link to more
information. The group subscription is perfect for brokers,
financial planners, investment groups, families and friends as
well as for existing CDx3 Notification Service subscribers.
The CDx3 Company Spotlight
shines on Virginia-based Dominion Resources. Dominion's history
dates back to 1787 and the company has a preferred stock that
has been continuously trading since 1944. Dominion, now a $23
billion utility is also an issuer of CDx3 Preferred Stock.
Doesn't it just fry your bacon
when you type the trading symbol of a preferred stock into an
online quote web site and get that annoying "invalid trading
symbol" message? That's because the trading symbols of preferred
stocks are not standardized (how this helps investors is not
clear to me). This month's CDx3
Question Of The Month article clears up this ridiculous
confusion by providing you with the naming conventions used by
common quoting web sites and brokers.
The Free Special Offer
article below provides you with a download link to what could be
the most important document you will read during this global
credit crisis. As a reader of this monthly CDx3
Newsletter, you obviously have an interest in preferred
stock investing. This newly published report is titled "Quick
Guide To Preferred Stock Investing During A Global Credit Crisis"
and is available to my readers for free (see link in the Free
Special Offer article below).
The legislature just passed the
don't-call-it-a-bailout legislation that is intended to slide a
trampoline under free-falling financial institutions. While it
will be several months before the provisions of this legislation
are implemented (i.e. the "toxic debt" is removed from bank's
books, freeing them up to start lending again), we should start
to see some affects in the coming weeks. I look forward to
reporting back to you in next month's issue of the CDx3 Newsletter.
Criteria Filter Out Bad Banks For CDx3 Investors
Now Available: Quick Guide To
Preferred Stock Investing During A Global Credit Crisis
The CDx3 Selection
Criteria have successfully filtered out every
financial institution that has failed during
this credit crisis. CDx3 Investors knew to
stay away from Washington Mutual, IndyMac,
Freddie Mac, Fannie Mae, Bear Stearns, New
Century and Lehman Brothers from the beginning.
September 2008 left many investors wondering
where the bottom of this 14-month long credit
crisis is; but those who invest in CDx3
Preferred Stocks* haven’t missed a beat.
institutions that have failed were all filtered
out by the ten CDx3 Selection Criteria
(Preferred Stock Investing, Chapter 1). Might
there be exceptions down the road, especially
during this historic credit crisis? Sure. But,
to date, there has not been.
No Dividends Missed:
CDx3 Preferred Stocks have not so much as missed
a single dividend payment – ever. And we’re
talking about decades-long track records of
quarterly dividend payments in most cases (see
this month’s CDx3 Company Spotlight article
Washington Mutual, IndyMac, Freddie, Fannie,
Bear Stearns, New Century, Lehman Brothers and
the other smaller banks that have failed this
year, not one of them qualify as an issuer of
CDx3 Preferred Stock - never did.
For all of the
market gyrations throughout September 2008, CDx3
Investors have continued to come out on top –
month after month, quarter after quarter -
cashing a steady stream of dividend checks.
How Is That Possible?
On September 30, 2008 I published a summary of
the CDx3 Income Engine
titled “Quick Guide To Preferred Stock
Investing During A Global Credit Crisis”
and I'm making it available to you for free.
Guide, complete with real examples, is
non-promotional and a very important read for
those interested in preferred stock investing.
The opportunity in
front of preferred stock investors is huge. If
you choose to let this historic opportunity go
by, do so because you feel that it is in your
best interest, not because you are uncertain
about how to take advantage of it.
was important to CDx3 Investors for another
What issuer of CDx3 Preferred Stock was founded
in 1872, is a $22 billion bank with assets over
$135 billion and avoided sub-prime lending,
option adjustable-rate mortgages and complex
debt securities and has seen its stock rise over
35% ($29.55 to $40.45, Sep 26, 2008) this year?
same bank that, during September, issued the
highest dividend paying CDx3 Preferred Stock in
history – 8.95%.
It is also the same bank whose old-school CEO
just fired off a scathing letter to Congress
calling the policy-makers at the U.S. Treasury
unqualified former Wall Street types who know
nothing about commercial banking.
Here is the CDx3 Hall
of Fame – the CDx3 Preferred Stocks
with the highest dividend rates in
history (8.875% or higher):
Three of the seven preferred stocks that have
made the CDx3 Hall of Fame were issued this
year, including the record-setting September
issue. Subscribers to the
CDx3 Notification Service received a CDx3
Buyer's Notification email message on September
8 identifying this record-setting CDx3 Preferred
Check out the Effective Annual Return (EAR)
earned by the previous four, all over 15% to the
CDx3 Investors who purchased them (for about
$25) when they were issued (all have now been
called except HPT-B from Hospitality Properties). CDx3 Investors are
able to earn such high returns by following the
preferred stock investment method described
throughout Preferred Stock Investing. By knowing
when, how and why to screen, buy and sell the
highest quality preferred stocks, CDx3 Investors
have multiple opportunities to add a nice
capital gain on top of the above-average
dividend income paid to them by CDx3 Preferred
Stocks (see Quick Guide).
Want to know the trading symbols of the 2008
CDx3 Hall of Famers? Subscribers to the
Notification Service receive a CDx3 Buyer’s
Notification email message whenever a
new CDx3 Preferred Stock is issued. Subscribers
are among the first in the world to know about
these spectacular preferred stocks. The CDx3
Buyer’s Notification email message includes a
CDx3 Preferred Stock Spec Sheet (see
sample) with all of the particulars for each new CDx3
Preferred Stock issue.
The annual dividend rate paid by new CDx3 Preferred
Stocks has been increasing since June 2007 (now
at an average of 8.8%). Will
the next CDx3 Preferred Stock break the 9%
* CDx3 Preferred Stock:
CDx3 Investors are only interested in the highest
quality preferred stocks and there are lots of pretenders
to weed out. Applying the CDx3 Selection
Criteria (Preferred Stock Investing,
Chapter 1) will eliminate about 90% of the regular
preferred stocks trading on today's stock
considered a "CDx3 Preferred Stock," regular
preferred stocks must:
1. be issued by a
company with a perfect record of never having
suspended a dividend on a preferred stock;
the "cumulative" dividend requirement,
which means that in the unlikely event that the
issuing company misses a dividend payment to you
(which I have never seen happen with a CDx3
Preferred Stock), they have to make it up to you
later; they still owe you the money; and
3. be rated
"investment grade" by Moodys
and consistently applied selection criteria
takes the emotion out of your investing
decisions and leaves you with the highest
quality preferred stocks - "CDx3 Preferred
Group Subscriptions To The CDx3 Notification Service
Are Now Available
CDx3 Notification Service
Subscriptions For $60 Per Member
to the CDx3 Notification Service are now available for
groups. While an individual subscription costs
$180, subscriptions for groups are now available for as
little as $60 per member (more
When I speak to groups
about the CDx3 Income Engine they ask how much a subscription to the CDx3
Notification Service costs. When I say "$180" they
always ask "...but what about for all of us?"
They have a point.
For members of groups, $180 per person can add up pretty
So this month we are
announcing the group subscription to the CDx3
Notification Service. When your group subscribes to the
CDx3 Notification Service, you are allowed to copy
(hardcopy or electronically) CDx3 Notification Service
materials for the members of your group.
Here's how it works: Since groups come in all
different sizes, large and small, we sell group
subscriptions in "4-Member Packs." Each
4-Member Pack covers up to four members of your group
and only costs $240.
Just get the number of
4-Member Packs needed to cover the members of your group
and you're all set (more
It does not matter who
your members are either; the 4-Member Pack covers any
four members. We do not need (or want) to know the names
of your members. So members can come and go. Easy!
By using the new group
subscription, up to four people can subscribe to the
CDx3 Notification Service for as little as $60 per
person. Compared to $180 per person, the CDx3
Notification Service group subscription is a whale of a
Group subscriptions are
great if you are a broker or financial planner.
Are you a member of an investment group? Learn
something new! Or get together with another family
member or friend; it just takes two to be a group!
Current subscribers can save a few bucks this way
too. Get a few friends to buy a 4-Member Pack and share
Brokers, Financial Planners:
Have clients interested in preferred stocks
(fixed-income investors)? We do all of the research and
work, you just forward the professional quality CDx3
email materials to them; add your own comments if you
wish. Expand your relationship with your clients.
Investment Groups: Tired of reviewing the
same old reports at your monthly investment group
meeting? Why not learn something new? Why now learn
about how to select, buy and sell the highest quality
preferred stocks? Make CDx3 Preferred Stocks part of
your group's portfolio.
Family membership: If there is even one other
person in your family interested in investing, you're a
group! Rather than buying two individual subscriptions
for $180 each, buy a 4-Member Pack for $240 - that takes
you down to $120 per person, a $60 per person savings.
Do something new and different and do it together!
Already a subscriber? All you need to
do is get a few friends together and have them split the
cost of a 4-Member Pack. Everybody saves!
Find the number of members
in your group on this sample table - see the savings per
When you subscribe to the
CDx3 Notification Service as a group, the savings per
member is pretty hard to beat - just like CDx3 Preferred
These Companies That Issue CDx3 Preferred
Dominion Resources (NYSE: D)
Since banks have been dominating
the headlines lately, the CDx3
Company Spotlight, for the last
several months, has been shining
on the many non-bank companies
that issue CDx3 Preferred
Southwest Gas Corporation
(utility), BRE Properties
(apartments), W.R. Berkley
Hawaiian Electric Industries
(utility) and Simon Property
Group (shopping malls) have all
been featured in the CDx3
Newsletter over the last few
Spotlighting these non-bank
issuers of CDx3 Preferred Stocks
should remind you of the
importance of diversifying your
investments, especially as the
economic pendulum swings.
Because they have the ability to
raise their revenue as costs
rise, and because they are
frequently a "sole-provider"
within the market they serve,
utilities are often seen
favorably as an investment
is for this reason that I wanted
you to meet
Dominion Resources (NYSE:
One of the things that makes
this utility interesting is that
one of Dominion's preferred
stocks has been trading day in
and day out and continuously
paying its dividends since
August 29, 1944 (VEL-E,
not a CDx3 Preferred Stock).
Another interesting thing about
Dominion is that it is one of
America's oldest publicly traded
companies. Dominion has been
trading since back in the days
when no one thought that there
would ever be more than
twenty-six publicly traded
corporations; Dominion trades on
the New York Stock Exchange
under the single-letter trading
Dominion, a $23 billion
Virginia-based utility with its
history extending back to 1787,
has grown by mergers and
acquisitions of smaller
Dominion now owns 7,800 miles of
natural gas transmission
pipelines along with the
nation's largest natural gas
storage system (950 billion
cubic feet of capacity).
Dominion currently serves
customers throughout eleven states
and is an issuer of CDx3
Typing a preferred stock symbol
into a service like MarketWatch
often comes up empty; what's the
If you believe that the
brokerage industry has conspired
to keep individual investors in
the dark about preferred stocks,
the problem that Bob has been
having could be Exhibit A.
Just like common stocks, in order to buy, sell or just
get a quote from your broker or
an online quote service (such as MarketWatch.com), you need to
know the trading symbol of the
preferred stock that you are
Unfortunately, preferred stock
trading symbols are not
standardized like the trading
symbols for common stocks. The
common stock symbol ‘IBM,’ for
example, gets you a quote for
International Business Machines
on any service. But preferred
stock symbols vary depending on
the service that you are using.
Probably the most common symbol
convention for preferred stocks
is the hyphen convention where a
hyphen follows the trading
symbol of the issuing company,
then a letter indicating the
specific preferred stock series
(-A, -B, -C etc.).
For example, Public Storage, the
company that provides
self-storage units for rent all
over the country, has a trading
symbol of PSA. On many services
then, their series L preferred
stock has a trading symbol of
But each service is allowed to
substitute their own preferred
stock symbol convention so,
unless you are in the know, the
inevitable confusion can result.
Page 16 of Preferred Stock
Investing provides the only
cross-reference that I know of
for preferred stock trading
symbols by online service.
BigCharts.com is owned by
MarketWatch (which use to be
owned by CBS). BigCharts and
MarketWatch both use the PR
convention, where the letters
“PR” are substituted for the
hyphen. PSA-L, for example, is
PSAPRL on BigCharts and
Convention: Yahoo Finance,
a great resource for stock
market information and news
(finance.yahoo.com), uses the –P
convention. PSA-L would be PSA-PL
at Yahoo Finance (try
The online brokerages have their
own set of conventions. For
- E*Trade uses the
- Schwab uses the
- TDAmeritrade sticks with the
hyphen as is (PSA-L)
Check out page 16 of
Preferred Stock Investing
for a variety of preferred stock
trading symbol conventions. One
of them should work with your
Thanks to Bob C. for the great
question. You will receive a
free copy of the CDx3 Special
Report "Dividend Accounting."
Submit your question.
"Preferred Stock Investing During A Global
Thank You For Your Interest In Preferred
Stock Investing And The CDx3 Income Engine
CDx3 Newsletter readers have been with me for
quite some time. And from the email that I receive I
know that many of you have read Preferred Stock
Investing and have implemented the CDx3 Income
Engine on your own (the book includes all of the
resources needed to do so without the CDx3 Notification
The 14-month long credit crisis has shaken our financial
system and everyone who is invested in it (which is just
about everyone). Even though the CDx3 Selection
Criteria, day after day, have successfully filtered out
every failed bank for over a year now, and even
though there has not been so much as a missed dividend
for those who have invested in CDx3 Preferred Stocks,
there's still some anxiety.
And that's what concerns me the most. As a researcher, I
have an enormous volume of data regarding the market
price behavior of CDx3 Preferred Stocks.
I can not only explain this market price behavior but I
have the data needed to support my observations. Chapter
9 of Preferred Stock Investing includes the
investment results, using the CDx3 Income Engine, for
every qualifying preferred stock issued since January
Whether market prices are driven down by uncertainty
related to war (2002) or by a global credit crisis
(2007/08), the market prices of CDx3 Preferred Stocks
behave in certain ways at certain times.
To thank you for your interest, and to provide you with
some very timely insights, I have just published a "Quick
Guide To Preferred Stock Investing During A Global
This is an important and timely document that all who
are interest in using the highest quality preferred
stocks to benefit from this credit crisis should read.
Understanding the CDx3 Income Engine is more important
now than ever.
Enjoy reading the
Quick Guide and thanks again for your
interest in my research.
Don't-Call-It-A-Bailout Legislation Puts Trampoline In Place
Will Banks Bounce Or Bust Right Through?
September 2008 will be viewed as one of
the most important months in global
financial history, and not one that
anyone cares to repeat. The roller
coaster became almost unbearable with
the Dow Jones Industrial Average having
its worst day in history and one of its
best days in history back-to-back. Bring
your own Dramamine!
A few days afterword, just to calm everyone down,
the legislature found a way to turn an 8-page
bailout proposal into 464 pages of me-too pork
spending. "We'll pass it before the weekend's
out...no we won't...yes we will...which weekend?..."
For better or worse, they passed something that
vaguely resembles the original intensions. You see,
banks have so much "toxic debt" (loans linked to
mortgages issued to people who are not, and never
were, going to be paying them back) that the banks
are scared to make any more loans. What if even the
tiniest fraction of the new loans go bad too?
The result: a subzero freeze on credit that 14
months of blowtorching has been unable to thaw.
Credit (new loans) has simply become unavailable -
no new factories, no new mortgages, no new credit
cards, no consumer spending on credit cards, no new
jobs, no economic growth - just Dramamine.
The idea behind this don't-call-it-a-bailout
legislation is that if the government takes the
toxic debt off of the bank's hands, the banks will
be able to start lending again. Consumers will
consume, developers will develop and employers will
employ and the U.S. economy, which is the size of
the next seven largest economies in the world
combined, will start to move forward again. For
better or worse, right or wrong, that's the idea.
And now we wait.
I'll report back to you in next month's CDx3
Remember, I'm not a stock broker;
I'm not trying to sell preferred
stocks to you; and I don't sell
investment advice. I'm an
investment researcher with an
economics and statistics
background who has developed a
simple way to earn a respectable
return at very low risk. And I've
written it down in
Preferred Stock Investing.
I'm hopeful that you find these
Newsletters interesting, and
will consider learning more by
purchasing my book, Preferred
Stock Investing or by subscribing to
CDx3 Notification Service.
take a look at
www.PreferredStockInvesting.com. And don't forget
FREE SPECIAL OFFER.
someone who might be interested in simple,
low-risk investing for non-investment
experts? Have them send an email
they will automatically
begin receiving this monthly CDx3
next month (plus a
CDx3 Special Report) - all FREE.
Many Happy Returns,
Doug K. Le Du