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Old 01-19-2016, 07:55 PM   #341
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Which preferreds have been holding up best lately?
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Preferred Stock Investing-The Good , The Bad and The In Between
Old 01-19-2016, 08:27 PM   #342
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Preferred Stock Investing-The Good , The Bad and The In Between

For me, the ones that never trade! Those are the utility preferreds. They just wobble on a few trades and lock up once a week or so. Those are the ones I have most my money in. For example AILLL dropped 40 cents last week, as I snagged the last available at $25.75. Bidders went up to $26 today while ask minimum was at $26.75 (which would be a dumb market purchase) to buy but nobody was offering to sell. My most illiquid only has one share available and it is offered for $1000, which is $900 over par. No buying will be going on there.
The junk preferreds which are offered by cash starved companies have been rocked for the past 6 months as they mirror the high yield debt market which has been trashed. I stay mostly in investment grade illiquids and they have been holding up well. But again,they rarely move much. And that is good for Coolius. I worry he thinks he will have to go back to work full time if his issues drop a nickel.


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Old 01-19-2016, 08:31 PM   #343
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Watching my favorite CHSCM getting near $26. I would love to pick some up under $26.
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Old 01-19-2016, 08:40 PM   #344
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Interestingly, I heard on CNBC what is rarely mentioned. Bill Gross actually recommended a closed end preferred stock fund FPF... I am not going there, but you rarely hear these things mentioned on tv.


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KOD?


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Old 01-19-2016, 08:47 PM   #345
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Watching my favorite CHSCM getting near $26. I would love to pick some up under $26.

That wouldnt be a bad buy. It has got close to your mark. I juiced my returns this past year trading in and out of CHSCL while keeping my baseload intact.
I would really love a few adjustable preferreds "throw in the towel" and drop. Then just sit on the issues with rate hike protection in pocket and wait for underlying bond to mature and take the cap gain at maturity.


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Old 01-19-2016, 08:48 PM   #346
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KOD?


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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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Old 01-19-2016, 08:54 PM   #347
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More on FPF:

Best Buys In Preferred Shares CEFs For 2016 Are Paying 8.5% Or More | Seeking Alpha

Quote:
FPF: Several funds rise to the top of this analysis. FPF is at the top of essentially every category. It is the only top-ranking fund that has a deep discount relative to its mean discounts over the past quarter, six months and full year. By this measure, indications are that the fund is unlikely to suffer marked price drops relative to its NAV. Add to this the fact that it has been turning in an excellent performance at NAV and the fund only becomes more attractive.

FPF is only one of two funds here that is not wholly invested in the domestic market. The other is DFP whose portfolio is 72% US. FPF, by contrast, is more strongly international with a portfolio that is 49% US.

The credit rating for FPF's portfolio is 64.6% BBB or above; 30.2% BB, 1.6% B, and 3.6% unrated. It's noteworthy that energy is not listed as being among it top ten sectors.
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Old 01-19-2016, 08:58 PM   #348
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Watching my favorite CHSCM getting near $26. I would love to pick some up under $26.

I also have the same mindset; had sold CHSCM a couple weeks ago at $26.34, and have been watching for it to swing below $26 to buy back.

CHSCL, if it goes below $26, would be a great deal - but I suspect it will not happen unless things get a lot worse in the market.
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Old 01-19-2016, 09:03 PM   #349
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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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Old 01-19-2016, 09:09 PM   #350
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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
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Old 01-19-2016, 09:25 PM   #351
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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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Old 01-19-2016, 09:26 PM   #352
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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..
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Preferred Stock Investing-The Good , The Bad and The In Between
Old 01-19-2016, 09:39 PM   #353
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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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Old 01-19-2016, 09:43 PM   #354
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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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Old 01-19-2016, 09:48 PM   #355
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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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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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Old 01-19-2016, 09:53 PM   #356
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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!
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Old 01-19-2016, 10:03 PM   #357
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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!

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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Old 01-19-2016, 10:07 PM   #358
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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.
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Old 01-19-2016, 10:38 PM   #359
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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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Old 01-20-2016, 10:23 AM   #360
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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.
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