We had plenty of junky preferred issues sold in the last few years. Of course there is always junk being sold, but during the age of zero interest rates we had more than our fair share.
Tonight we have CareCloud (CCLD) announcing the suspension on their 2 preferred issues. Monthly dividends were suspended on their 11% monthly payer (CCLDP) and its 8.75% monthly payer (CCLDO).
Shares which were trading around $15.25 and $13.82 respectively at the close of todays trading are now trading down in the $10.50/share area.
Now the difference between this company and some others that have suspended is CareCloud has a real business with $89 million in revenue through the 1st 9 months–unfortunately their cash position is running very low and with common shares at $1.02/share raising cash through a common share sale is not a great option.
Dividends are cumulative so we will see where this ones goes in the future.