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

[Mulligan]

SPLP-A still plugging along. Up another $0.40 today. Must be something in addition to being added to that index. I just can't find anything.

Its kind of hard to get real clear info since it is not a well followed company......I have found out its better to be lucky than good...Last week I had to sell my FPI-B at end of day to raise cash for a standing bid that hit. Good thing as FPI and preferred cratered on accounting rumors. Well I couldnt resist and bought 200 at 18.20 at end of day yesterday and 100 premarket at 19.59. So instead of losing a little coin, I am up some coin. I probably should sell, but I will hold for now.

 

[brokrken]

I have found out its better to be lucky than good...

I'll certainly take it!

 

[Mulligan]

I'll certainly take it.

I havent forgot SPLP-A. And its probably a good play now. Its about at price I sold out last year. I just cant wrap my head around their finances since the second acquisition and understand what is going on. I saw they have bought back a modest amount which saves them money and CEO also has some too which is good.

 

[MooreBonds]

Its kind of hard to get real clear info since it is not a well followed company......I have found out its better to be lucky than good...Last week I had to sell my FPI-B at end of day to raise cash for a standing bid that hit. Good thing as FPI and preferred cratered on accounting rumors. Well I couldnt resist and bought 200 at 18.20 at end of day yesterday and 100 premarket at 19.59. So instead of losing a little coin, I am up some coin. I probably should sell, but I will hold for now.

Damn...was a little late to the party, but just picked up 170 at 21.23. While not the steal that Mulligan got, I'm still content with just a hair over 7% current yield. Adding in the capital gain for the "interest rate spike penalty if not called" provision, total YTM is about 9.94%* for a 6 year hold.


*I do my YTM calcs a little different than some - I look at my cost basis of about $21.30 w/ commissions, then calculate YTM by combining annual dividend payments ($1.50) with the average capital gain per year, realized at maturity (about $.62/year) . Financial calculators might disagree, but it's all in tax-deferred accounts, so the time value discount on the capital gain part isn't as important since it's just in a few years. And it's a hell of alot easier to calculate on the fly, with prices changing in a blink of an eye sometimes.

 

[Mulligan]

Damn...was a little late to the party, but just picked up 170 at 21.23. While not the steal that Mulligan got, I'm still content with just a hair over 7% current yield. Adding in the capital gain for the "interest rate spike penalty if not called" provision, total YTM is about 9.94%* for a 6 year hold.





*I do my YTM calcs a little different than some - I look at my cost basis of about $21.30 w/ commissions, then calculate YTM by combining annual dividend payments ($1.50) with the average capital gain per year, realized at maturity (about $.62/year) . Financial calculators might disagree, but it's all in tax-deferred accounts, so the time value discount on the capital gain part isn't as important since it's just in a few years. And it's a hell of alot easier to calculate on the fly, with prices changing in a blink of an eye sometimes.

Moorebonds, what little testosterone I had disappeared when I got home today and I sold 200 at $22.14 today. Almost $800 in 2 days on a puny purchase. I still have 100 as they were used with unsettled funds and wont clear until Monday. The bottom line is yield is down to 6.73%., not 8.2% when I bought. I will toss the other 100 in the trash can Monday. I bought an additional 200 DCP-B with proceeds. This kicks out an oversized one time 67 cent divi in 2months being a new issue and essentially a 4 month dividend payment.

 

[Texas Proud]

SPLP-A still plugging along. Up another $0.40 today. Must be something in addition to being added to that index. I just can't find anything.

Well, it is up again big today.... now up about $2.50 in the last month!!!


It is my largest pref holding as I was waiting to get to the first put, take my money and then see what I wanted to do... now I am not as sure.. I am up over 8% of my purchase price... will have to do calcs to see what is the better option..



Anybody know the 3rd anniversary date? I just put the year 2020 down...

 

[bobandsherry]

Well, it is up again big today.... now up about $2.50 in the last month!!!


It is my largest pref holding as I was waiting to get to the first put, take my money and then see what I wanted to do... now I am not as sure.. I am up over 8% of my purchase price... will have to do calcs to see what is the better option..



Anybody know the 3rd anniversary date? I just put the year 2020 down...

Big volume today, over 1 million shares (10 day average is about 55K), so something is going on. Good luck.

 

[Mulligan]

Well, it is up again big today.... now up about $2.50 in the last month!!!


It is my largest pref holding as I was waiting to get to the first put, take my money and then see what I wanted to do... now I am not as sure.. I am up over 8% of my purchase price... will have to do calcs to see what is the better option..



Anybody know the 3rd anniversary date? I just put the year 2020 down...

Congrats Texas for hanging on! I made a quick buck profit during the T and A conversion and have never returned. They must buy the shares by February 2020 it appears. But they can do it anytime. This is a very complex written preferred and at times hard to understand. This means if things go good it is pretty straight forward. But if they encounter problems you are exposed to situations beyond a standard $25 redemption at maturity. This company is very insider heavily controlled remembered. Dont mean this in a negative way, but in an informative way.
I have not done much lately, bought 100 more NSS at 25.65 and 350 shares of BANFP on fast sell off 2 days ago below $27.

 

[Coolius]

Trading has become a lot less frequent for me, as I am still involved with caring for a dying friend.


But today I saw a bid for 200 shares CNLPL at $56, so quickly decided to sell. This is near the top of its normal trading range, I am confident I can buy them back at a lower price, hopefully before the next XD date.


Bought some BKAML at $25.10 with sales proceeds from BAC-D; just didn't want to hold in the growing threat of a call.

 

[Texas Proud]

So again I see how the brokerage houses cheat their clients...


I had a bid in to sell 500 shares of stock for a flip... have the shares listed at $25.95... well, 100 of those shares are sold and then for some strange reason 800 shares are sold at $25.949 at the same time as my 100 shares...


A bit later I get another 200 shares sold, but lucky for me the final 200 sell before the end of the day...


I have had it where my sale does not go through...



This is one of the many ways they can cheat you, but it will never be changed as it represents billions of $$$s to them...

 

[Texas Proud]

Trading has become a lot less frequent for me, as I am still involved with caring for a dying friend.


But today I saw a bid for 200 shares CNLPL at $56, so quickly decided to sell. This is near the top of its normal trading range, I am confident I can buy them back at a lower price, hopefully before the next XD date.


Bought some BKAML at $25.10 with sales proceeds from BAC-D; just didn't want to hold in the growing threat of a call.

It was awhile back, but I had sold my CNTHP at $56+ hoping to buy in when it went down to $52 ish... it never has gone that low since... heck, just looked at it went to $57.50....

 

[Coolius]

Texas, CNTHP is presently at $55.68 as of close, so you do have the chance to get it back lower than you sold.
I don't think you'll see a 52 handle unless there is a real threat of a call ( IIRC, the call price is $51+ and add accrued interest )



These illiquids have to be carefully monitored if one wants to do scalping on them; I had observed CNLPL trading range between $55 - $57 for a very long time, so figured I have a reasonable chance to get them below what I sold.


Well, we'll see what happens - the next XD is early September, gives me about 6 weeks to grab them back.

 

[Texas Proud]

Texas, CNTHP is presently at $55.68 as of close, so you do have the chance to get it back lower than you sold.
I don't think you'll see a 52 handle unless there is a real threat of a call ( IIRC, the call price is $51+ and add accrued interest )



These illiquids have to be carefully monitored if one wants to do scalping on them; I had observed CNLPL trading range between $55 - $57 for a very long time, so figured I have a reasonable chance to get them below what I sold.


Well, we'll see what happens - the next XD is early September, gives me about 6 weeks to grab them back.

Yea, I have seen that.... but I have decided to have a base of holdings that I just hold... and then my money to trade... started at $12K and did not do that many flips but earned almost $2,800 last year... so put in a bit more and was still doing slow flips until April... so, YTD just under $3800 but since Apr $2500... so with the bit of added money and gains I am flipping about $27K right now... I find it a nice hobby...


So, slow flips are not my bag anymore...

 

[brokrken]

Big volume today, over 1 million shares (10 day average is about 55K), so something is going on. Good luck.

I'm also still holding these and I agree something is up with the insiders that us common folk aren't fully aware of yet. At this point seems like good news so I'm holding tight.

 

[brokrken]

Big volume today, over 1 million shares (10 day average is about 55K), so something is going on. Good luck.

I'm also still holding these and I agree something is up with the insiders that us common folk aren't fully aware of yet. At this point seems like good news so I'm holding tight.

 

[njhowie]

So again I see how the brokerage houses cheat their clients...

I had a bid in to sell 500 shares of stock for a flip... have the shares listed at $25.95... well, 100 of those shares are sold and then for some strange reason 800 shares are sold at $25.949 at the same time as my 100 shares...

A bit later I get another 200 shares sold, but lucky for me the final 200 sell before the end of the day...

I have had it where my sale does not go through...

This is one of the many ways they can cheat you, but it will never be changed as it represents billions of $$$s to them...

Pick up a cheap/used copy of Dark Pools by Scott Patterson to gain a little insight into what is taking place.

 

[Mulligan]

Pick up a cheap/used copy of Dark Pools by Scott Patterson to gain a little insight into what is taking place.

I have done some reading on this and found it interesting. Various different situations could be occurring based on the situation. I used this to my advantage one time with an illiquid that I knew had very few outstanding shares, and I wanted more. So I set up the highest bid and lowest ask at a price I was acceptable with buying.
Then after the bait was set I would change my bid to my ask price and hit the buy button. They kept front running my ask price and selling me shares a tenth of a penny less than my ask. I knew they didnt have much fire power but kept buying until the last 100 share lot was partially filled by my own shares, so at that point I knew I had flushed out all the shares available.

 

[Mulligan]

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

Did some quick hitters. Already sold my BANFP for well over a buck per share profit. Barely held it a few days. Bought 400 shares of GJP an oldie but goodie at 22.60 and flipped out 40 cents higher in 2 days the other day. Picked more DCP-B yesterday and looking to hold a month and take profits from dumb people looking at that 67 cent divi thinking that is the quarterly payout only to find out afterwards it was an out of the gate extra ~18 cent one time additional payout.
Also flipped and bought back a slug of HE-U recently. Bought my last lot back slightly higher at 26.09 but sold them all well higher and snagged divi. I always plan on holding this and then the illiquidity will drive it up and I feel compelled to flip. It went to 26.33 on next trade after mine, today. Love them illiquids!
Did buy 400 more shares of RILYL today at 25.19 and 25.21.This thing is anchored to par fearing call this fall. Bring it on, and lets see. Still meat on the bone here and a good place to hide. They have had big earnings jump so a great safeish yield type chase, especially if it continues on as its maturity date is still 3 years away.

 

[brokrken]

You guys still holding your BGCA? And do you think they'll use what's left of this new 5.375% note they issued to redeem it? There is plenty of money there. After they pay off the 8.375% notes that are out there, they'll still have $210mln left.

 

[Mulligan]

You guys still holding your BGCA? And do you think they'll use what's left of this new 5.375% note they issued to redeem it? There is plenty of money there. After they pay off the 8.375% notes that are out there, they'll still have $210mln left.

I got out on a 50 cent spike at purchase before last exD a few weeks after buying. I usually hit and run on past call issues that are glaring scream redemptions. Now that Newmark is separating and ratings agencies are settling things up, there is no efficient reason to keep this outstanding, unless fatcats on inside want to keep eating on it.

 

[brokrken]

I got out on a 50 cent spike at purchase before last exD a few weeks after buying. I usually hit and run on past call issues that are glaring scream redemptions. Now that Newmark is separating and ratings agencies are settling things up, there is no efficient reason to keep this outstanding, unless fatcats on inside want to keep eating on it.

At this point, I'd get half the divy as accrued if they called today. So, I might as well wait and see if it makes to mid September to get the full one. Then, maybe people get some confidence that it won't be called and it creeps up a few cents, then I may get out. Otherwise, if it drifts lower, I'll just close my eyes and collect what comes until it stops.

 

[brokrken]

Also, don't roast me, but I did pick up some TBB today at a decent discount. Fairly safe and pays way better than the cash account that money was sitting in. Also, helps balance my risk a bit, as most of my other preferred/debt are riskier. Also, can't find anything else that looks very intriguing these days.

 

[bobandsherry]

Also, don't roast me, but I did pick up some TBB today at a decent discount. Fairly safe and pays way better than the cash account that money was sitting in. Also, helps balance my risk a bit, as most of my other preferred/debt are riskier. Also, can't find anything else that looks very intriguing these days.

No roast, but with higher yield on their common, I think I'd go for the T shares. I don't see a BK in any outlook horizon so position as creditor is not that big a deal. I just see more chance of upside for the T and growth of the divi vs. fixed rate TBB that will see the price get squeezed as rates go up. That's just my take, I've been wrong before, but also been known to be right sometimes

 

[bobandsherry]

I followed Mulligan and jumped into DCP-B at $25.05, but then jumped out yesterday $25.62, a dime shy of the full dividend but not bad for couple week holding. It also removes the K1 from my taxes, trading it instead for short term gain

Going to keep an eye on it and see if I can get in at a discount and still scrape off a few more cents on dividend payout with flip after.

 

[brokrken]

No roast, but with higher yield on their common, I think I'd go for the T shares. I don't see a BK in any outlook horizon so position as creditor is not that big a deal. I just see more chance of upside for the T and growth of the divi vs. fixed rate TBB that will see the price get squeezed as rates go up. That's just my take, I've been wrong before, but also been known to be right sometimes

Bob, I thought about that, but this is part of my fixed income allocation and I didn't want to shift the money to equity. This money came from an old BB rated bond I've had for a while that recently matured that was actually yielding lower than this. So, I got better yield and better quality. But, in I certainly don't disagree with you're thinking.