Preferred Stock Investing-The Good , The Bad and The In Between 2015 - 2020

[pig pile]

Managed to catch another dip on NSS, picked up remaining shares at $25, right at par.

I did too. Easy money on this one.

 

[Coolius]

Managed to catch another dip on NSS, picked up remaining shares at $25, right at par.

Would there be any issues with K-1s and/or UBTI for this issue? I suspect not, but not certain.

 

[Coolius]

Tex, yes, the latest batch of AHT-D pulled out of your account is the one slated for December 8 redemption.

I had about 68% taken away from my account.

 

[youbet]

Any thoughts on GEK now that it's trading below PAR/Call for the first time in a year?

 

[bobandsherry]

I did too. Easy money on this one.

Looks like we both got in too early, traded as low as $24.62 today. This has me thinking there's no call, someone's selling off for some reason.

 

[pig pile]

Looks like we both got in too early, traded as low as $24.62 today. This has me thinking there's no call, someone's selling off for some reason.

NS was downgraded today by someone. Thought this was a sure call. But yeh not sure now. Weird price swings. I had a new order put in but it popped off those lows pretty quick.

It still is even now below par.

 

[Mulligan]

Would there be any issues with K-1s and/or UBTI for this issue? I suspect not, but not certain.

Sorry Im late, Coolius. No it is just standard debt. No K-1.

 

[Mulligan]

NS was downgraded today by someone. Thought this was a sure call. But yeh not sure now. Weird price swings. I had a new order put in but it popped off those lows pretty quick.



It still is even now below par.

I just couldnt pull trigger...Good entry point for people wanting something on the lower end of high yield risk. I got 400 shares. I just cant go deeper with these types. I only allow a certain amount of my money to reach for yield. I wanted to but ultimately passed on adding more.

 

[Mulligan]

Looks like someone snagged 2 whole shares of PPWLO today at $105, that you again? LOL

Bob, I pulled my plug of 100share order after getting 60. Wont hang around and get annoyed with 2 share purchases, lol... Probably will not try again for a while.

 

[Texas Proud]

NSS dropped below $25, I had limit order in and picked up 400 more shares. I didn't get at the low but got it at $25.03, OK with just collecting 48 cent divi if this get's called in Jan. If not, with change to floating at 673.4 basis points above 3Mo LIBOR I'm still happy with the ongoing yield. Still have another limit order so hoping to pick up a few more near par.

OK... thanks for this one.... I did snag 500 at $25.... so if it is called at least I do not lose.... and it is B+ rated...

 

[Texas Proud]

Tex, yes, the latest batch of AHT-D pulled out of your account is the one slated for December 8 redemption.

I had about 68% taken away from my account.

Yep.... that is it... I did not know about this one... that makes 3 (yes THREE) calls on this issue... I am not sticking around and sold the rest of mine at a nickel to dime loss per share....

 

[bobandsherry]

OK... thanks for this one.... I did snag 500 at $25.... so if it is called at least I do not lose.... and it is B+ rated...

I guess I can, based on your recent call history, count on this one to be called in Jan then

 

[Sunset]

I improved my position on NSS by pulling a tiny weenie Mulligan.

I had 200 shares bought at $25.15
Bought another 400 shares at $24.95 which was nice of my broker as I had put in at $25.
I sold the original 200 shares at $25.20

So better position and netted $10 (as my trades were free).

 

[Mulligan]

I improved my position on NSS by pulling a tiny weenie Mulligan.

I had 200 shares bought at $25.15
Bought another 400 shares at $24.95 which was nice of my broker as I had put in at $25.
I sold the original 200 shares at $25.20

So better position and netted $10 (as my trades were free).

Sunset, sometimes it isnt about the cash amount, but implementing the successful process.

 

[Coolius]

I improved my position on NSS by pulling a tiny weenie Mulligan.

I had 200 shares bought at $25.15
Bought another 400 shares at $24.95 which was nice of my broker as I had put in at $25.
I sold the original 200 shares at $25.20

So better position and netted $10 (as my trades were free).

Ah, but you gave up 2 free trades, which have an intrinsic value of about $14, so in reality you actually lost $4,

 

[Mulligan]

Ah, but you gave up 2 free trades, which have an intrinsic value of about $14, so in reality you actually lost $4,

Now Coolius, we dont know Sunset’s mindset...Might be a real cheapo. And by burning two of these free trades might prevent Sunset from making a future bad buy or sell being too cheap to pay for the future transaction cost!

 

[Winemaker]

Picked up some INN/PE at $24.58 to replace my Royal Bank of Canada. 6.125 over 5.5%, no brainer.

 

[Sunset]

Ah, but you gave up 2 free trades, which have an intrinsic value of about $14, so in reality you actually lost $4,

However, if I think about it as I positioned 400 shares at 5 cents below par, then I gained a potential of $40 if they get called, which after the $14 trade cost leaves me net positive of $26

 

[Sunset]

Sunset, sometimes it isnt about the cash amount, but implementing the successful process.

Absolutely !!

It's like getting a _WIN_

At lunch while I was eating at Olive Garden today for "free" via my Pasta Pass I was thinking how even though it was a tiny trade, it felt good to win.

I do other things to win, even though none of them will move the needle on retirement any measurable amount, yet it feels good to win and brightens the day.

 

[Coolius]

Absolutely !!

It's like getting a _WIN_

At lunch while I was eating at Olive Garden today for "free" via my Pasta Pass I was thinking how even though it was a tiny trade, it felt good to win.

I do other things to win, even though none of them will move the needle on retirement any measurable amount, yet it feels good to win and brightens the day.

That is so true! the thrill of a "win", far surpasses the agony of a loss.

I also enjoy free trades every month, so have done Mulligans for as little as $5 profit, especially when I get buyer's remorse after buying,

And you are correct - you obtained a lower cost basis for your replacement shares, which has to be included in the overall picture - i.e., the " Full Mulligan ".

In fact, I also completed a Mulligan today. Yesterday sold MAA-I at $66.60, having bought a couple days ago at $65.80.. Today, I bought back most of them for $66.20 ( now need to buy another 29 shares to round out ).

 

[Mulligan]

Picked up some INN/PE at $24.58 to replace my Royal Bank of Canada. 6.125 over 5.5%, no brainer.

Wine, are you sure you are up to the risk of holding those greasy hospitality reits? You seem to be a panic buyer and seller all the time, lol.

 

[Mulligan]

Absolutely !!

It's like getting a _WIN_

At lunch while I was eating at Olive Garden today for "free" via my Pasta Pass I was thinking how even though it was a tiny trade, it felt good to win.

I do other things to win, even though none of them will move the needle on retirement any measurable amount, yet it feels good to win and brightens the day.

Is the Pasta Pass helping you “win” the battle of the weight scale?
I think I would be a loser winning that pass. I could eat pasta every day!

 

[Winemaker]

Wine, are you sure you are up to the risk of holding those greasy hospitality reits? You seem to be a panic buyer and seller all the time, lol.

The only seller I have had in my preferred portfolio was that AGO-E you talked me into, then I sold it after I saw the Puerto Rico exposure. I'm a buy and hold holder, don't have time to play with trades.

I am getting a lot of my issues called, but I paid well below par. My RBC 5.50% was taken Monday, replaced it with INN-E 6.125%. Today, my GS-L 5.95% gets taken, still looking for a replacement.

No panic at all. Steady as she goes.

 

[bobandsherry]

The only seller I have had in my preferred portfolio was that AGO-E you talked me into, then I sold it after I saw the Puerto Rico exposure. I'm a buy and hold holder, don't have time to play with trades.

Are you in any preferred funds? I have money in a couple of preferred funds such as HPF. It's been been pretty good to me without having to worry about trading. It's up about 3% since i bought it earlier this year and spitting out 7-8% divi.

 

[Winemaker]

Are you in any preferred funds? I have money in a couple of preferred funds such as HPF. It's been been pretty good to me without having to worry about trading. It's up about 3% since i bought it earlier this year and spitting out 7-8% divi.

I have some PGX, PFF and CPXCX that I bought back in 08-09, at dirt cheap levels in a full service broker account. I believe these funds also use some leverage to juice their returns and they might be holding some junk stuff, too. Although they do provide some diversity, I also decided in 2014 to create my own "preferred fund", purchasing below par preferreds and holding until they're called or I die. Created in 10/14 at FIDO, with $100,000, it is currently $121,000 as I reinvest my divvies in other issues. I generally buy only 200 shares of each issue but on occasion I have DCA downward. I have also moved about $10,000 of that account to a Roth.

I'm very happy with my results, no panic, no worries, steady as she goes.