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

[Mulligan]

Quote:

Originally Posted by Coolius 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]

Quote:

Originally Posted by Coolius 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]

Quote:

Originally Posted by Mulligan 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]

Quote:

Originally Posted by Sunset 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]

Quote:

Originally Posted by Winemaker 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]

Quote:

Originally Posted by Sunset 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]

Quote:

Originally Posted by Mulligan 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]

Quote:

Originally Posted by Winemaker 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]

Quote:

Originally Posted by bobandsherry 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.

[Mulligan]

Quote:

Originally Posted by Winemaker 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.

Yes, I knew once you buy, you get married, so that was why I was teasing you. These leveraged funds are going to face head winds with the compression of the yield curve happening. Some of these actually “protect” the divi by returning capital instead of actual preferred divi payments. A different type of investment. Not my thing, but that doesnt mean its bad. I just prefer to stay unlevered and eat my own cooking.

[Mulligan]

FYI... SPLP declared both cash payments for SPLP-A and T. A will get the usual 37.5 this quarter and T gets the prorated 27.1 cent this quarter...The T merge into the A shares come Jan. 1.

[Sunset]

Quote:

Originally Posted by Mulligan 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!

I was really wanting the free trip to Italy but since I didn't "win" that, I quickly decided to "win" the pasta pass.

I'm limiting my trips to Olive Garden for health reasons, as I'm really supposed to lose weight.

I won't be "winning" the Pasta Pass next year

[Mulligan]

Quote:

Originally Posted by Sunset I was really wanting the free trip to Italy but since I didn't "win" that, I quickly decided to "win" the pasta pass. I'm limiting my trips to Olive Garden for health reasons, as I'm really supposed to lose weight. I won't be "winning" the Pasta Pass next year

Dont tell me Pasta isnt healthy, Sunset. I enjoy it too much!

Here is some useless info. An online investor told me he owns a 100 year bond issued in 1930 that matures in 2030. The company beginnings was in utility power and foreign utilities. Well after all sorts of mergers and such, OfficeMax of all companies is now the guaranteer of this bond and will pay it until maturity unless it of course goes under.

[Mulligan]

I sold my CHSCO today for a quick easy $125 on 200 shares, and then bought 200 shares of RNR-C at $25.55 today. It kicks out a 38 cent divi in less than 2 weeks so yield is a bit over 6%. A rare insurance preferred that is cumulative QDI. Bought $10k of that 100 year bond issued in 1930 I mentioned last post. YTM of 8.2% come early 2030 if held. I couldnt help myself.

[Winemaker]

Has anyone seen the symbol for Ladenburg's 6.5% notes? I tried the one from SA, but FIDO comes up empty. New issue was 11/14/17.

PS. Nobody else buy until I get my 200 shares under par first. Agreed? Except whoever finds the symbol.

[Texas Proud]

Quote:

Originally Posted by Mulligan I sold my CHSCO today for a quick easy $125 on 200 shares, and then bought 200 shares of RNR-C at $25.55 today. It kicks out a 38 cent divi in less than 2 weeks so yield is a bit over 6%. A rare insurance preferred that is cumulative QDI. Bought $10k of that 100 year bond issued in 1930 I mentioned last post. YTM of 8.2% come early 2030 if held. I couldnt help myself.

Whats the ticker? I cannot find anything about it from what you posted...

I like an 8.2%.... need to put the call money to work when I get it in Dec.... I do not think this will be called

[alaska55]

Quote:

Originally Posted by Mulligan Yes, I knew once you buy, you get married, so that was why I was teasing you. These leveraged funds are going to face head winds with the compression of the yield curve happening. Some of these actually “protect” the divi by returning capital instead of actual preferred divi payments. A different type of investment. Not my thing, but that doesnt mean its bad. I just prefer to stay unlevered and eat my own cooking.

Are you that these 3 funds are leveraged. CPXCX with a yield of less than 4.5% is not leveraged, and I'm pretty sure the other 2 are not. PFF is a passive index fund. Are you thinking of preferred closed ended funds.

[Winemaker]

Quote:

Originally Posted by alaska55 Are you that these 3 funds are leveraged. CPXCX with a yield of less than 4.5% is not leveraged, and I'm pretty sure the other 2 are not. PFF is a passive index fund. Are you thinking of preferred closed ended funds.

All three funds use hedges, swaps, derivatives and mention is their prospectuses that "75% of funds, and borrowings" will be invested in ....

I hold about 2% of my portfolio in those issues so it's just a diversity issue for me in my fixed income side.

[Mulligan]

Quote:

Originally Posted by alaska55 Are you that these 3 funds are leveraged. CPXCX with a yield of less than 4.5% is not leveraged, and I'm pretty sure the other 2 are not. PFF is a passive index fund. Are you thinking of preferred closed ended funds.

I wasnt referencing my “their usage” to those tickers but to Winemakers reference of leveraged funds in general. I should have been more clear. Yes, PFF is basically a gloried Financial/Bank vanilla preferred fund.