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

[Freedom56]

Well Freedom, I caved. Sold my Exxon for a quick almost $300 for holding a couple weeks and punching a couple buttons.
Got a potential windfall coming. I own 10% of CTWSO tiny float, and the company is merging with San Jose Water if approved. If it goes through my shares I bought at $14.50 and $15.50a couple years ago will be redeemed per merger agreement. Call price is $21. That will be a sweet little bonus from this little 1500 share honey hole.

Mulligan, good moves. I still have a lot of cash floating in money markets waiting to find a home. I'll be patient and wait for bond funds to sell off again and wait for issues that I want.

 

[Mulligan]

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

I dont blame you sitting on cash. Not much even I like but I dont sit on cash well. I bought more MER-P today. I will take the call risk and the 7% debt paper from BAC. Been very pleased with my all income stash, being up closing in on 3% now for the year all in preferreds and supposed interest rate head winds. There is a preferred for all seasons though. You just got to match the right ones to the right situation if buy and hold isnt the plan.
Still got some cash and may hold for some more GDL-C when it becomes available. I got an oversubscribed bid in for more pre market and hope to snag those too.

 

[bobandsherry]

Well Freedom, I caved. Sold my Exxon for a quick almost $300 for holding a couple weeks and punching a couple buttons.
Got a potential windfall coming. I own 10% of CTWSO tiny float, and the company is merging with San Jose Water if approved. If it goes through my shares I bought at $14.50 and $15.50a couple years ago will be redeemed per merger agreement. Call price is $21. That will be a sweet little bonus from this little 1500 share honey hole.

Nice gain potential on CTWSO. Surprised you already bailed on XOM. I thought that even just getting the div would be enough for you with it floating near the bottom. Oil prices popped a bit too on news of surprise of lower US inventories, so could be some good news longer term.

 

[Mulligan]

Nice gain potential on CTWSO. Surprised you already bailed on XOM. I thought that even just getting the div would be enough for you with it floating near the bottom. Oil prices popped a bit too on news of surprise of lower US inventories, so could be some good news longer term.

Im just not a common stock guy, Bob...I am weak. Make a few bucks and leave...I didnt post this, but I told Coolius... A month or so ago I bought Exxon and a couple days later bailed for a 50 cent a share profit, lol...But that turned out wise as it was over $75 then. Who knows I may be back in a few more weeks.

 

[pb4uski]

Mulligan, you've come a long way from the principally utilities preferred guy investing in quality issues for income at the beginning of this thread.

 

[Winemaker]

Im just not a common stock guy, Bob...I am weak. Make a few bucks and leave...I didnt post this, but I told Coolius... A month or so ago I bought Exxon and a couple days later bailed for a 50 cent a share profit, lol...But that turned out wise as it was over $75 then. Who knows I may be back in a few more weeks.

Okay Mully, grow a pair and start doing options!

You're in and out before the ink is dry!

 

[bobandsherry]

Im just not a common stock guy, Bob...I am weak. Make a few bucks and leave...I didnt post this, but I told Coolius... A month or so ago I bought Exxon and a couple days later bailed for a 50 cent a share profit, lol...But that turned out wise as it was over $75 then. Who knows I may be back in a few more weeks.

Gotta stick with what you feel comfortable with. Was surprised you even looked at XOM to begin with, just didn't seem to fit your style.

 

[Mulligan]

Mulligan, you've come a long way from the principally utilities preferred guy investing in quality issues for income at the beginning of this thread.

PB, if they would drop 20% I would be back all in, lol...They just got bid up too high and the par issues are 5% or lower. I made a well timed transition last fall to term dated, adjustables, and why the hell aint they called issues. These have preformed strong while the more traditional ones have dropped. Its forced me into issues of less comfort and also bank issues big time. But I have had to accept the fact as long as liquidity and access to capital is there, less than stellar companies will survive. And as long as economy is ok, the banks will be strong with only call risk being a problem. But I always am willing to chase a bit of yield for call risk.
And then I will find a shiny turd occasionally like RLGT-A. A 9.75% par that has always paid. I dug into records and found in June of 2017 they established a revolver line of credit that stated could be used to call the preferred at first call date of Dec. 2018. Any company mentioning 18 months ahead they are looking to call a preferred are damned determined to get rid of it. So I take the meat that is left on the bone and hold until call.

 

[Mulligan]

Gotta stick with what you feel comfortable with. Was surprised you even looked at XOM to begin with, just didn't seem to fit your style.

I have owned it in the 80s at times, the 90s at times , and this century. One of the few I ever play in. I miss Texaco... That tells you how much I ever invested in individual common stocks, lol...

 

[Mulligan]

Okay Mully, grow a pair and start doing options!



You're in and out before the ink is dry!

A man has to know his limitations, Winemaker. I am not smart enough to make wine or options either!

 

[bobandsherry]

And then I will find a shiny turd occasionally like RLGT-A. A 9.75% par that has always paid.

You def have a nose for the more obscure issues. One day I want to have the type of insight you do on preferred's

 

[Texas Proud]

PB, if they would drop 20% I would be back all in, lol...They just got bid up too high and the par issues are 5% or lower. I made a well timed transition last fall to term dated, adjustables, and why the hell aint they called issues. These have preformed strong while the more traditional ones have dropped. Its forced me into issues of less comfort and also bank issues big time. But I have had to accept the fact as long as liquidity and access to capital is there, less than stellar companies will survive. And as long as economy is ok, the banks will be strong with only call risk being a problem. But I always am willing to chase a bit of yield for call risk.
And then I will find a shiny turd occasionally like RLGT-A. A 9.75% par that has always paid. I dug into records and found in June of 2017 they established a revolver line of credit that stated could be used to call the preferred at first call date of Dec. 2018. Any company mentioning 18 months ahead they are looking to call a preferred are damned determined to get rid of it. So I take the meat that is left on the bone and hold until call.

Mully.... I do not remember you mention this one before.... sounds like a term security to me...

But, selling above par it is only a 4.X% YTC so I will pass on it.. you probably got it when it was less...

 

[Mulligan]

Mully.... I do not remember you mention this one before.... sounds like a term security to me...

But, selling above par it is only a 4.X% YTC so I will pass on it.. you probably got it when it was less...

No I recently just bought it at 25.58. It will crank out over 2.10 in payments leaving over a $1.50. You need to annualize the yield Texas. About 7% QDI annualized with strong chance of it being called....I will take that all day long. If it isnt well I am stuck with a 9.75% par from an issue that has always paid, a profitable company projected to be profitable in 2019, and a cash flow benefiter from taxes being lowered to 22% as they paid about 35% .

 

[Texas Proud]

No I recently just bought it at 25.58. It will crank out over 2.10 in payments leaving over a $1.50. You need to annualize the yield Texas. About 7% QDI annualized with strong chance of it being called....I will take that all day long. If it isnt well I am stuck with a 9.75% par from an issue that has always paid, a profitable company projected to be profitable in 2019, and a cash flow benefiter from taxes being lowered to 22% as they paid about 35% .

You are right... I did not annualize.... silly me... also forgot to calculate the last partial divi....

 

[Mulligan]

You are right... I did not annualize.... silly me... also forgot to calculate the last partial divi....

Texas, I was just more passionate about finding a justification to purchase, lol... The coffee worked good this morning before I head out to golf, so I dug through my accounts with calculator to figure out my returns this year...Its almost 3.5%. Been a very strong year considering I am all in, with income issues facing secular headwinds. The minor flips are working, prices have crept up, and a few lucky breaks...Such as selling a chunk of a preferred at $182 you bought at $140 only a couple months earlier. Those kind of trades really boost returns for a mid 6 figure stash... You 7 figure guys its just a tiny tiny blip on the radar screen!

 

[Mulligan]

XOM already dropped almost a buck since I sold. Maybe its time to buy again, lol.

 

[brokrken]

And then I will find a shiny turd occasionally like RLGT-A. A 9.75% par that has always paid. I dug into records and found in June of 2017 they established a revolver line of credit that stated could be used to call the preferred at first call date of Dec. 2018. Any company mentioning 18 months ahead they are looking to call a preferred are damned determined to get rid of it. So I take the meat that is left on the bone and hold until call.

YTC still not bad for a 9 month hold as it's near 6.5% on this one based current price. However, with volume of 1 share today, it may a difficult one do get hold of.

 

[bobandsherry]

YTC still not bad for a 9 month hold as it's near 6.5% on this one based current price. However, with volume of 1 share today, it may a difficult one do get hold of.

I saw that, who sells 1 share. And who buys 1 share? Hopefully whoever got that trade didn't have to pay a commission fee.

 

[brokrken]

I saw that, who sells 1 share. And who buys 1 share? Hopefully whoever got that trade didn't have to pay a commission fee.

Yeah, YTC with a $10 commission on that one will certainly go way negative

 

[brokrken]

On RLGT-A I noticed something strange when looking at the dividend history. According to Morningstar, the 10/31/2016 dividend wasn't paid. I guess this must be a typo. Otherwise, how can that happen on a cumulative?


RLGT.PRA Radiant Logistics Inc Pref Share Stock Upcoming and Historical Dividends and Splits

 

[Mulligan]

It traded 5000 shares yesterday. Probably a few k ave each day im guessing

 

[Golden sunsets]

Mulligan, you've come a long way from the principally utilities preferred guy investing in quality issues for income at the beginning of this thread.

This!!!!

 

[Freedom56]

I dont blame you sitting on cash. Not much even I like but I dont sit on cash well. I bought more MER-P today. I will take the call risk and the 7% debt paper from BAC. Been very pleased with my all income stash, being up closing in on 3% now for the year all in preferreds and supposed interest rate head winds. There is a preferred for all seasons though. You just got to match the right ones to the right situation if buy and hold isnt the plan.
Still got some cash and may hold for some more GDL-C when it becomes available. I got an oversubscribed bid in for more pre market and hope to snag those too.

Mulligan, I'm at about 38% cash and 62% invested. The cash is earning about 1.45% until it finds a home. My holdings are in corporate notes in financials, technology, telecom, pharma, and industrials. I'm up about 2.8% YTD including interest payments. That performance will shoot up higher next month when a significant portion of my semi-annual interest payments are paid in April. The yield curve is flattening even more. It's a matter of time before we see an inverted yield curve.

 

[Mulligan]

Mulligan, you've come a long way from the principally utilities preferred guy investing in quality issues for income at the beginning of this thread.

PB, Walking off course now, saw my last 200 shares needed for AILLL to get me back to 2500 shares. Sold several thousand off at 27.15 while back and got all but these last 200 at 26.30-40. So I am not ute preferred empty. I got the AILLL slug, CTWSO, CNIGO, CNIGP, and a small amount of MSEXP.

I have owned it in the 80s at times, the 90s at times , and this century. One of the few I ever play in. I miss Texaco... That tells you how much I ever invested in individual common stocks, lol...

 

[Mulligan]

PB, Walking off course now, saw my last 200 shares needed for AILLL to get me back to 2500 shares. Sold several thousand off at 27.15 while back and got all but these last 200 at 26.30-40. So I am not ute preferred empty. I got the AILLL slug, CTWSO, CNIGO, CNIGP, and a small amount of MSEXP.

Also found out I got my 200 share par $50 GDL-C shares and an additional 200 share over subscribed request was granted. These are safer than ute preferreds and the put call features will keep this anchored above par.