Shorting GM, buying GM Preferred (GMW)

Ok, today I shorted 4000 shares of GM at $24, for $96K I spent the money on 6000 shares of GMW at $15.5, for $93K (GMW is not a true preferred, but rather bundled GM bonds, so better position in Bankruptcy.) Annual dividends I'll owe on the GM stock would be $1 per share per year, or $4K Annual dividends I'll receive on the GMW would be $10,800. Plus I have $3K in hand going forward. If the stock collapses, preferred should hold up better. Worst case, the both go to zero, I net $3K. If stock recovers, preferred should go back up to near par of $25. BEST case might be GM bankrupcy, with bonds still worth 40-50 cents on the dollar! Then short goes to zero, and preferred settles at about $10. $60K profit. In the mean time, I collect $7000 per year, with nothing out of pocket. Worst case, stock recovers MORE than preferred recovers, which seems unlikely. Anyone else doing this? Any other stocks this looks approach should work on?

The risk, of course, is that the common goes up much faster than the preferred such that it wipes out your dividend premium advantage. However, that's what stops are for. This is a true hedge. Nice looking trade, though. bnick