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

[Mulligan]

Yes that was me today testing AILLL at 26 today just to see if I could get a bite (not even a nibble) really think that is a little too high with the chance of a call, but thought $25.75 was not going to fill. Any one holding those are holding a nice security. Did get 5.5K of WFC/L today though @ 1175 so I now own the first preferred stock of my life. Those utility preferred you like aren't illiquid they are solids, they never move

Ha! That is true... Board of Directors meet in mid February should be declaring next dividend. It would be prudent to wait for that, then you will have a bit of a cushion to chase a bit. I own several thousands of them but have been picked up along the way between $25.40 and $26.20 over extended period of time. You should have plenty of time to get in at $26 or under between the official declaration and exD date.
Its funny how those big dollar preferreds play mind games with a person. It drops $10 and you think you just got killed, but when translated into a $25 par issue it is just a blip.


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[aja8888]

That thing uses 34% leverage and is loaded to the gills with banks and insurance companies. That is a major no no for Widowed Orphaned Grandma Mulligan... Also, WOG Mulligan just read the top 10 holdings and didn't recognize any of them...


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I thought you would like it..

 

[Mulligan]

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

I thought you would like it..

Wow, Aja... Have you seen the US futures tomm? Asia markets getting bent over the table again, too. Ol Widowed Grandma Mulligan sold off the preferreds "she" doesnt trust... Got some cash handy, maybe I can find someone needing to sell off their illiquids tomorrow from a margin call and I can buy some more. Wait, that wont happen. Widows and orphans dont buy on margin. Still...I wont give up hope!


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[jazz4cash]

Maybe...Does Bill even have a "fast ball" anymore? He always looks defeated when he is on tv anymore. Maybe its just old age....


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I agree he does look defeated but I thought he was settling into his new diggs quite nicely. Maybe feeling abused by his former employer. What was that trade of a lifetime he was pimping...German bonds?


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[Mulligan]

I agree he does look defeated but I thought he was settling into his new diggs quite nicely. Maybe feeling abused by his former employer. What was that trade of a lifetime he was pimping...German bonds?


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Ha! I remember that one. I don't think he brought them up this time. I remember him bringing that up a while back and saying it was the right call but didn't work out. Whatever that meant.


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[aja8888]

Wow, Aja... Have you seen the US futures tomm? Asia markets getting bent over the table again, too. Ol Widowed Grandma Mulligan sold off the preferreds "she" doesnt trust... Got some cash handy, maybe I can find someone needing to sell off their illiquids tomorrow from a margin call and I can buy some more. Wait, that wont happen. Widows and orphans dont buy on margin. Still...I wont give up hope!


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Nope have not seen any the Asian markets yet. I expect them to be down as that has been the trend. Do not by any oil related stuff. There will be a wave of asset sales soon. There may be no buyers, though!

 

[Mulligan]

Nope have not seen any the Asian markets yet. I expect them to be down as that has been the trend. Do not by any oil related stuff. There will be a wave of asset sales soon. There may be no buyers, though!

So I guess you wont be buying any Chesapeake Energy preferreds tomorrow? Those preferred holders are delusional if they think there will be anything left for them.


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[aja8888]

So I guess you wont be buying any Chesapeake Energy preferreds tomorrow? Those preferred holders are delusional if they think there will be anything left for them.


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They are not on my list along with the bonds.

 

[Mulligan]

They are not on my list along with the bonds.

US Futures has Dow down 250 plus points... HSI and Nikkei both down over 3% so far....May be an ugly morning...


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[Coolius]

On days like this, am glad that my bigger holdings in Utility Trapped Preferreds are steady - perhaps steady is not quite the term - they are simply not trading.

Individuals have no need to sell into the panic. Funds are not holding these thinly traded stocks, so they would not be selling or buying.

Today's action shows that Preferreds mentioned here ( AILLL, AILNP, CNTHP, CNLPL ) are indeed in strong hands and able to weather the storm. However, they will probably not rise much, if at all, when the rebound happens. And that is fine with me.

Sure hope this panic selling exhausts itself quickly. Very painful to see the destruction occurring all over the planet.

 

[Mulligan]

Coolius, you seen AHT-D today? How does that stock get any sleep? Every morning its taken back behind the wood shed with pants pulled down and beat hard for 7 hours. Rinse and repeat...


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[Coolius]

Coolius, you seen AHT-D today? How does that stock get any sleep? Every morning its taken back behind the wood shed with pants pulled down and beat hard for 7 hours. Rinse and repeat...


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yep, simply watching in amazement. the energy sector looks totally ravaged.

even my favorite, WFC-L, has not been spared. A few very scared sellers today, dumping for whatever reason. Down $10 a share to $1,165. if I didn't already have an overweight position, would be sorely tempted to add. ( BTW, my original cost basis for WFC-L is $1,192 per share, so I feel the pain as well )

 

[aja8888]

I think it's time to buy some CHSCM.

 

[Mulligan]

I think it's time to buy some CHSCM.

I watching what do you think?


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[aja8888]

I am going to pick up 200 shares. It dipped below $25 a while ago.

 

[Mulligan]

I am going to pick up 200 shares. It dipped below $25 a while ago.

I almost bit at $24.60 something. Comfortable with the CHSCL I have as I got most at $25.15 when issued... I really had a couple other issues on my mind, but cant get them to budge...


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[aja8888]

I almost bit at $24.60 something. Comfortable with the CHSCL I have as I got most at $25.15 when issued... I really had a couple other issues on my mind, but cant get them to budge...


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When I went in, bid was much higher as I missed the earlier dip down as I was buying my daughter lunch at the time. She owes me!

 

[Mulligan]

When I went in, bid was much higher as I missed the earlier dip down as I was buying my daughter lunch at the time. She owes me!

I think you know that isnt happening...She is your daughter. She has cost you since birth and that wont ever change. But hey, you still caught at good price. I just couldn't pull the trigger. I already am into Ag enough through it and another convertible.


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[Mulligan]

No fire sales on the utility preferreds. In fact little changed, one up, one down, and rest unchanged. Through in the towel and continued my build up of BGEPF for a very long term hold.


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[Mulligan]

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

I dont like to sell my favorites, but someone really wanted CNLPL, so I sold 250 of them over $55.That is a years worth of dividends paid up front. Will wait for the nutty buying to subside and reenter closer to $52 later, unless I find something else.
Had a little fun with AILLL before that. Had extra money to buy some more and continue to accumulate. Not being greedy but I wanted them at $26.03, so I threatened a 1000 share sell dump from a safe ask price lurking in the shadow. That caved them to sell fearing that block would come down and dump.
Also bought a couple more hundred GJP. I accumulate these as a long term play, that counters perpetual preferreds. Sometime in the next 20 years the 3 month treasury will go above 1.85% and every basis point above that goes to the 3.65 yield plus the $4 plus cap gain is always in the pocket long term.


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[Coolius]

For those who may be interested , there is an article on Seeking Alpha about Wells Fargo preferred stocks.

Perhaps it can help clarify some of the reasons why the WFC-L series, even at a PPS of $1,170, is a reasonable buy-and-hold for a steady income stream.

Author is Vlae Kershner, so you can search for his articles.

Title is:
One Of These Preferreds Is Overpriced - Another Is A Bargain

 

[Mulligan]

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

Got all my tax free space all filled up again... Got 500 shares in on a few different trades this morning on KTH (PECO energy trust preferred) in the $31.40s... Very satisfied to hold this as its an A3 grade and mandatory termination 2028 with no call possibility. This may be my favorite next to my Amerens....Sounds like a long time away, but heck I wont even be at retirement age yet when it matures, and I have been retired for 6 years already.


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[aja8888]

Got all my tax free space all filled up again... Got 500 shares in on a few different trades this morning on KTH (PECO energy trust preferred) in the $31.40s... Very satisfied to hold this as its an A3 grade and mandatory termination 2028 with no call possibility. This may be my favorite next to my Amerens....Sounds like a long time away, but heck I wont even be at retirement age yet when it matures, and I have been retired for 6 years already.


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Why was KTH down $1.55 today to $31.00 ?

 

[Mulligan]

Why was KTH down $1.55 today to $31.00 ?

Somebody was unwinding a position. Average daily volume is 900 and 12,000 traded today. Anytime someone unloads an illiquid this is what happens. Just yesterday when it wasn't trading I sold a couple hundred shares at $33 that I bought at $31 a few weeks ago. When I saw the dump going on I jumped in, just a hair too early, but not as early as some getting them at $32. A person just never knows how deep the dump is as they hide and hold back available shares. It got under 31 then jumped back it appears. If more were available I would buy more if I had more tax free space. Paying 31% in taxes on this issue would not make this as inviting of a purchase in a taxable account for me. Im fine with the 31.40 purchase price.
This is the one problem with accumulating a big stash in an illiquid and needing to sell them all. I would face this same problem if I ever had to sell AILLL, but I never plan on selling.


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[aja8888]

Somebody was unwinding a position. Average daily volume is 900 and 12,000 traded today. Anytime someone unloads an illiquid this is what happens. Just yesterday when it wasn't trading I sold a couple hundred shares at $33 that I bought at $31 a few weeks ago. When I saw the dump going on I jumped in, just a hair too early, but not as early as some getting them at $32. A person just never knows how deep the dump is as they hide and hold back available shares. It got under 31 then jumped back it appears. If more were available I would buy more if I had more tax free space. Paying 31% in taxes on this issue would not make this as inviting of a purchase in a taxable account for me. Im fine with the 31.40 purchase price.
This is the one problem with accumulating a big stash in an illiquid and needing to sell them all. I would face this same problem if I ever had to sell AILLL, but I never plan on selling.


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I can't find this issue on Yield Hunter?