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

[bobandsherry]

Good job boys! Nicely played!!!!

Sometimes just dumb luck. But then offset by stupid stuff I end up doing [emoji3]. Maybe like this....

I unloaded my ALLY-A today at $26.37. I know that dividend coming up, but saw it's been bouncing so only playing it for trade and see if I get back in with lower price bounce before dividend pays. Seems like next dividend will end up being lower as LIBOR has dropped a bit. So has me thinking of how to play that.

The tied to LIBOR (and NSS too) has me a bit concerned since, as I understand it, LIBOR is upposed to be phased out for pricing. Hearing that replacement index may be few lower and not as favorable to movement going forward. You hear anything and if so what's your take?

 

[Mulligan]

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

Sometimes just dumb luck. But then offset by stupid stuff I end up doing [emoji3]. Maybe like this....

I unloaded my ALLY-A today at $26.37. I know that dividend coming up, but saw it's been bouncing so only playing it for trade and see if I get back in with lower price bounce before dividend pays. Seems like next dividend will end up being lower as LIBOR has dropped a bit. So has me thinking of how to play that.

The tied to LIBOR (and NSS too) has me a bit concerned since, as I understand it, LIBOR is upposed to be phased out for pricing. Hearing that replacement index may be few lower and not as favorable to movement going forward. You hear anything and if so what's your take?

Its just random speculation..ALLY-A kicker is so big, I dont think the risk of that is as much as it could be called...I sold 20 cents ago last week. But I was way too exposed doubling down at par and dont like being call exposed so far above par here. I picked up my 7th Canadian utility and or utility/pipeliner today. These reset preferreds are down 20-25% (and about that much past 52 weeks ) below par now from bad resets of tbills in the low 1% 5 yr Loonie to high 1% US 5 yr. From 2017...Love these. Rates could actually go down from present yield and their yields would still go up.
So currently I have no Libor adjustables. All of mine are 5 Yr US or Loonie Tbill resets.

 

[Mulligan]

Some looking to stretch yield QDI and look for cap gain down the road may consider ALTGF on OTC...
With respect to any Series C Shares that remain outstanding after September 30, 2017, holders shall be entitled to receive, as and when declared by the Board of Directors of AltaGas, fixed cumulative preferential cash dividends, payable quarterly. The new annual dividend rate applicable to the Series C Shares for the five-year period commencing on September 30, 2017 to, but excluding, September 30, 2022 will be 5.29 percent, being equal to the five-year United States Government bond yield of 1.71 percent determined as of today plus 3.58 percent.
Its trading a bit under $19, so true QDI yield is around 7%. If 5 yr goes to 3%, in 2022, one would see an 8.65% yield. The power of buying way below par is powerful. I have others of this type from Canada, though at lower yields.
Altagas has BBB- bond debt. Their credit has been strained from digesting WGL acquisition (Which includes Washington Gas and Light). They are looking to sell off non core assets and delever to protect ratings. Their end goal is more regulated utility exposure which was purpose of buying WGL.
Here is a little primer article in support of buying Altagas now or the preferreds. My interest only lies in the preferreds.

https://seekingalpha.com/article/4236131-altagas-2-ways-play

 

[Texas Proud]

Good job boys! Nicely played!!!!

One of the few that went up... but it is more than offset by the JCP bonds I bought.... but still hold...


I did not sell because of peer pressure... I don't feel any... there was really good info given that said I should not have this as an investment... however, I did have a good gain and decided to keep some for my 'play' account... turned out to be over 18% gain...


And yes, I got out at a great time... I had put a price or $18.05 but it sat... saw a lot going for $18 so lowered it and it sold immediately.... glad I change the price...

 

[bobandsherry]

I did not sell because of peer pressure... I don't feel any...

I was just funnin' with ya Texas.

 

[bobandsherry]

Anyone know what's up with QuantumOnline? It's been slow at times, none responsive at others and now got his message:

Server Error
The server encountered an internal error and was unable to complete your request.
Could not connect to JRun Server.

 

[NgineER]

From their website...

"QuantumOnline

2/5/2019



We are temporarily off line to upgrade our website security arrangements and will return to operation in the very near future. Please check back with us periodically to see when we return to full operation.



Don Doan

QuantumOnline.com"

 

[bobandsherry]

From their website...

"QuantumOnline

2/5/2019



We are temporarily off line to upgrade our website security arrangements and will return to operation in the very near future. Please check back with us periodically to see when we return to full operation.



Don Doan

QuantumOnline.com"

Thanks, this didn't show this morning, so perhaps they were trying repairs. Shows now. Hope it comes back soon, good source.

 

[Mulligan]

Bought some SCE-L again at 18.50 this morning and it recovered nicely to 18.80 today. Sold off NI-B at 26.95 last week and bought half back at 26.45..Goes exD in a couple weeks.
Even managed to add a few CNIGP shares to the collection at $21.65 today.

 

[Mulligan]

Bought some SCE-L again at 18.50 this morning and it recovered nicely to 18.80 today. Sold off NI-B at 26.95 last week and bought half back at 26.45..Goes exD in a couple weeks.
Even managed to add a few CNIGP shares to the collection at $21.65 today.

Well, who says you cant go back to the same lover again? Cashed more SCE-L gains for a second time. I bought 2 days ago at 18.50 and am out the door at $20 today. Bought a couple hundred more of NI-B at $26.42. Slowly rebuilding stash size after dumping almost 2000 shares at $26.95 last week for 2 dollar plus a share gain. Buying back 50 cents under sale price as I really want to own this long term. Bought a bunch of AGO-E today at $24.42. The chart and comparison to AGO-F is screaming over sold as somebody has been liquidating this issue as volume has been large lately. No way a 6.25% issue should be at 24.40 while the 5.6% sister is right near par.

 

[Coolius]

Been quiet on this board of late. I guess it's because Mulligan is out having fun in the snow with his DGF.


Many ( but not all ) income issues have recovered a goodly portion of their losses of Oct-Dec last year.


With the Fed trying to backpedal on their determination to raise rates, we can hope for continued improvement in prices going forward.


Maybe a good time to consider adding to current positions, or buying some whose prices have not recovered.

 

[Mulligan]

Been quiet on this board of late. I guess it's because Mulligan is out having fun in the snow with his DGF.


Many ( but not all ) income issues have recovered a goodly portion of their losses of Oct-Dec last year.


With the Fed trying to backpedal on their determination to raise rates, we can hope for continued improvement in prices going forward.


Maybe a good time to consider adding to current positions, or buying some whose prices have not recovered.

Coolius the safe issues have been good trades too...Look at JBK today after exD today...nice...AGO-E been rising too...And my SCE preferreds just keep on rocking upward. Have bought and sold often even increasing returns..Have the L the J and the D series now.

 

[Coolius]

The folks who tendered their JBK shares to Origen at $26 must be feeling pretty foolish now.



They lost out about 1.5% by giving up the dividend, and the appreciation of the stock on XD day.


Wonder if there is a way to find out how many shares were tendered to Origen? That might give a hint if another tender offer would spring up about 5 months from now.

 

[Mulligan]

The folks who tendered their JBK shares to Origen at $26 must be feeling pretty foolish now.



They lost out about 1.5% by giving up the dividend, and the appreciation of the stock on XD day.


Wonder if there is a way to find out how many shares were tendered to Origen? That might give a hint if another tender offer would spring up about 5 months from now.

It would be in SEC filings for company handling the issue. I will have to dig because I forgot. I do remember last time half the float tendered in August.

 

[Coolius]

Mulligan, if you can find anything about the Origen Phoenix tender results, please post it or PM me. I've been searching but cannot find anything - maybe I've been looking in the wrong places ?

 

[Mulligan]

Mulligan, if you can find anything about the Origen Phoenix tender results, please post it or PM me. I've been searching but cannot find anything - maybe I've been looking in the wrong places ?

Last time Coolius the info came out a couple weeks later. I will dig this weekend when I get home and let you know.

 

[Coolius]

So sorry to hear that your vacation was washed out by the horrible "atmospheric river" storm in Northern California this week.


Reminds me of a time when a friend saved up for a whole year to bring his family for 2 weeks in Hawaii. When they got there, the islands were under a huge storm with dark skies and pouring rain, and they did not see any dry days until the final day of their trip !! Total waste of money, but entirely out of their control.

 

[Mulligan]

See I guess it can always be worse...That is worse than my experience! In Vegas airport on last delayed leg home...Think we might get out...Here is the link to the JBK . You can track it to see. I am linking it so I can refer back to it also...Its an incredible pain to find!
https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=1284143

 

[Mulligan]

So sorry to hear that your vacation was washed out by the horrible "atmospheric river" storm in Northern California this week.


Reminds me of a time when a friend saved up for a whole year to bring his family for 2 weeks in Hawaii. When they got there, the islands were under a huge storm with dark skies and pouring rain, and they did not see any dry days until the final day of their trip !! Total waste of money, but entirely out of their control.

As you can see from last filing in August about half the float was wiped out on that tender.

On August 15, 2018, a distribution was made to the holders of the certificates issued by the Trust. Also on August 15, 2018, certain holders of the certificates exercised their right under the Trust Agreement to an Optional Exchange of 456,160 ($11,404,000 principal amount) Trust Certificates for $11,404,000 principal amount Underlying Securities. After giving effect to the Optional Exchange, 543,840 ($13,596,000 principal amount) Trust Certificates remained outstanding. $13,596,000.00 face amount Goldman Sachs Capital I 6.345% Capital Securities due February 15, 2034 remained held as the Underlying Securities by the Trust. Specific information with respect to the distribution and the optional exchange is filed as Exhibit 99.1 hereto.

 

[Coolius]

As you can see from last filing in August about half the float was wiped out on that tender.

On August 15, 2018, a distribution was made to the holders of the certificates issued by the Trust. Also on August 15, 2018, certain holders of the certificates exercised their right under the Trust Agreement to an Optional Exchange of 456,160 ($11,404,000 principal amount) Trust Certificates for $11,404,000 principal amount Underlying Securities. After giving effect to the Optional Exchange, 543,840 ($13,596,000 principal amount) Trust Certificates remained outstanding. $13,596,000.00 face amount Goldman Sachs Capital I 6.345% Capital Securities due February 15, 2034 remained held as the Underlying Securities by the Trust. Specific information with respect to the distribution and the optional exchange is filed as Exhibit 99.1 hereto.

Thanks! So there were 543,840 shares left when they did this second attempt. Will be very interesting to see how many more shares were tendered. Perhaps when they get down to the last few thousand shares in the hands of stubborn old coots like me, they will make a really good offer; I will hang onto my 500 shares in the meantime, and collect the dividend. Maybe $30 per share offer will do it for me.


Heck, the total value of the shares out there before the 2nd offer was $13.5 Million, it's probably less than $10 M after. they should have no trouble coming up with that kind of money to buy out the rest.

 

[Mulligan]

We dont know who this outfit is...A truly 3rd party offer or a front for Goldman Sachs? Glad I bought 1200 shares at about 25.85, a week or 2 ago, as we havent even got the 80 cent interest payment yet and the damn thing is back to 25.75 already.
Been beating the snot out of SCE preferreds past month. Sold again today out of J and L and rotated all into C as it hasnt ran up like the others. In fact it is down on the week and 15% past year still.
Bought 500 more Fortis today at $13.74. Got quite the slug here now from this investment grade utility preferred... 6% yield and almost 25% below par from a hideous reset. I really like this one...If Canadian Tbill would go to 3% in 4 years, this bad boy would reset to over 7% QDI investment grade... That is what buying below par would do, as at par that would equate to only 5.15%.

 

[Texas Proud]

So sorry to hear that your vacation was washed out by the horrible "atmospheric river" storm in Northern California this week.


Reminds me of a time when a friend saved up for a whole year to bring his family for 2 weeks in Hawaii. When they got there, the islands were under a huge storm with dark skies and pouring rain, and they did not see any dry days until the final day of their trip !! Total waste of money, but entirely out of their control.

Yea, we were in Hawaii during the gvmt shutdown... not able to see a few things we wanted to see...


However, the weather was great and all that we did see was also spectacular...

 

[Golden sunsets]

We dont know who this outfit is...A truly 3rd party offer or a front for Goldman Sachs? Glad I bought 1200 shares at about 25.85, a week or 2 ago, as we havent even got the 80 cent interest payment yet and the damn thing is back to 25.75 already.
Been beating the snot out of SCE preferreds past month. Sold again today out of J and L and rotated all into C as it hasnt ran up like the others. In fact it is down on the week and 15% past year still.
Bought 500 more Fortis today at $13.74. Got quite the slug here now from this investment grade utility preferred... 6% yield and almost 25% below par from a hideous reset. I really like this one...If Canadian Tbill would go to 3% in 4 years, this bad boy would reset to over 7% QDI investment grade... That is what buying below par would do, as at par that would equate to only 5.15%.

Which preferred issue do you own Mulligan?


Sent from my iPad using Early Retirement Forum

 

[Mulligan]

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

Which preferred issue do you own Mulligan?


Sent from my iPad using Early Retirement Forum

It is the series G issue..FTRSF. 5 yr Canadian Tbill plus 2.13%. At last purchase of 13.74 USD that is presently 6.01%

 

[Mulligan]

Which preferred issue do you own Mulligan?


Sent from my iPad using Early Retirement Forum

Golden I actually have 6 of them and 2 are USD 5 ur resets in US currency also...EBBNF and ALTGF.. Both of these reset off horrific 1.70-1.80% resets from 2017 and are both 20% under par yielding about 6.2% and 7% presently.