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

[Coolius]

You will some day, I am sure, Coolius!

Mulligan, your words are so prophetic. Today, bought the exact number of CNTHP shares I had sold 2 days ago @ $59.00, for $58.35.



Not a big gain, but lowering my cost basis for those shares by 1% in 3 days is OK for me. And no effect to dividend as this was nowhere near the XD date.




My holdings include AILLL, CNLPL, CNTHP, IPWLK, SLMNP, CBKLP, FIISO, WFC-L, BAC-L, MTB-, MTB-C. And several others.

 

[Mulligan]

Coolius, your gonna cry like a baby if next trade on FIISO is $125....Your gonna “lose” $2500 real quick. [emoji23]

 

[Coolius]

With my luck, the next trade of FIISO will be $110.



If I'm not asleep at the wheel, I'll buy them back for the biggest flip of my investing life......

 

[bobandsherry]

Ok, I had to look...What difference a year makes...I had 17 issues last year and only have 2 I had then...PFX and CTGSP (bought only recently to get back in it).
Most of these you would need a preferred reference guide to know what they are, lol
PFX, CTGSP, CNIGO, IPWLO, PPX, LXP-C, SLMNP, ERRAF, EBBNF, EBGEF, TGAPF, BCEFF, CDUTF, CNUTF, NYCB-U, MNR-C, GLP-A,and UEPCO.

So you stepped away from NSS, eh?

Here's what I'm holding today: NSS, GLOP-C, GMLPP, CHMI-B, LTS-A, CIM-D, SOHON, ETP-E, EBGEF, and bit into the apple from MooreBonds suggestion of AIRTP.

Some of these have had a nice ride up since I bought them and considering those that I flip out of.

 

[Mulligan]

So you stepped away from NSS, eh?



Here's what I'm holding today: NSS, GLOP-C, GMLPP, CHMI-B, LTS-A, CIM-D, SOHON, ETP-E, EBGEF, and bit into the apple from MooreBonds suggestion of AIRTP.



Some of these have had a nice ride up since I bought them and considering those that I flip out of.

Ya, I ditched it for a flip on something. Cant remember what. Certainly like it. Thought I could get back in later but it broke out and away from me. Would buy again at right price certainly, but not at this price. Some have gone crazy recently. LXP-C went plus 80 cent exd yesterday and is already higher than what one could have bought the day before exD. I am a bit overexposed here but I have made several bucks flipping it and getting the divi the past 3 weeks.
Sold off my MNR-C after banging 70 cents in about 3 weeks. Probably should have kept, but I use PPX has my holding tank being past call and kind of par anchored. It went crazy over 26.10 so I sold it off last week and been buying back last two days at 25.50-52. Hoping for another call avoidance and ride it up to exD again next interest payment.

 

[brokrken]

Current line-up: GLP-A, IPLPD, LANDP, NSS, PBI-B, RILYZ, SPLP-A, SSW-G, TBB. Also, own the commons NLY and GLOP, which help juice my yield.

Mine doesn't change much. I flipped LMHA back early in the year and added GLP and PBI more recently.

Am I the only one left holding SPLP-A? I'm too close to this 30% put at par to bail now. The price has to start being impacted by this at some point in the near future, right?

 

[MooreBonds]

Am I the only one left holding SPLP-A? I'm too close to this 30% put at par to bail now. The price has to start being impacted by this at some point in the near future, right?

I still have 350 of it. I had 450, but decided to pare down 100 just to diversify a little more since it's not a bank. The rest of my stable of preferreds has a headcount of 78 (most are 100 share lots, average position size is just over $3k). I keep wondering the same thing as you: when will next year's put start being reflected in the price? I imagine there will be a noticeable surge about 2 months out, then settle back down afterwards.

 

[pb4uski]

Received my very first call notice by email today for BBTPRE... will have received 2 dividends when it is called on 9/1 that exceed the small premium that I paid but I didn't expect that it would be called so soon.

 

[Mulligan]

Received my very first call notice by email today for BBTPRE... will have received 2 dividends when it is called on 9/1 that exceed the small premium that I paid but I didn't expect that it would be called so soon.

Its getting tough when the sub 6% ones are starting to fall. I use one of those the 5.9% PPX as a piggy bank and constant flipper the past year. Last flipped over 26.10 (after buying in 25.35 range the month before) skipped the 37 cent divi and repurchased this week at 25.50. Have quit a bit in it. Hoping it will stay in business a while longer to exploit it. Utes dont get as quick to redeem as profit margin sensitive banks are.

 

[Mulligan]

Received my very first call notice by email today for BBTPRE... will have received 2 dividends when it is called on 9/1 that exceed the small premium that I paid but I didn't expect that it would be called so soon.

PB, you make considering adding a noncallable to your repertoire. SLMNP can still be had in 1035-1040 range. It is noncallable perpetual with an owner put option at $802 being its a busted convertible from being acquired by LYB. LYB is Baa1 rated senior unsecured, so this slots SLMNP at Baa3. I own 20 shares which is a lot for me, but it serves as a core holding now. It is QDI.

 

[Coolius]

Received my very first call notice by email today for BBTPRE... will have received 2 dividends when it is called on 9/1 that exceed the small premium that I paid but I didn't expect that it would be called so soon.

I, own BBT-E as well, bought about a year ago at $25.08. Sad to see it called, but I did have a reasonable return on this investment, so not going to complain too much.


Facing the same situation as many of you, how to replace called holdings with something at least close to what was taken. Not an easy task, now that even the sub 6% yielders are in danger of call.


Busted convertibles like WFC-L & BAC-L have really shot up, they are now in the mid to low 5% yield range, very disappointing.

 

[bobandsherry]

Another preferred redemption... saw that JPM calling their Series W / JPM-E as of Sept 1st.

https://www.jpmorganchase.com/corpo...pmc-redeem-non-cumulative-prfrdstk-080219.htm

 

[NgineER]

Beauty of standing order. I set up a sell order for GFNCP for 103.70 GTC+ext in my TD account. Sale was executed this morning pre market. Close last night was $100.85. Meanwhile my order with fidelity for the same amount was not executed despite the price being the same. The pre hours sale went all the way up to $108.

 

[brokrken]

Beauty of standing order. I set up a sell order for GFNCP for 103.70 GTC+ext in my TD account. Sale was executed this morning pre market. Close last night was $100.85. Meanwhile my order with fidelity for the same amount was not executed despite the price being the same. The pre hours sale went all the way up to $108.

Nice, Congrats! I try that too, but mine always end up cancelling after 180 days (I think) without execution.

 

[pb4uski]

Another preferred redemption... saw that JPM calling their Series W / JPM-E as of Sept 1st.

https://www.jpmorganchase.com/corpo...pmc-redeem-non-cumulative-prfrdstk-080219.htm

That's a close call.... my JPM is JPM-H.

 

[Texas Proud]

Current line-up: GLP-A, IPLPD, LANDP, NSS, PBI-B, RILYZ, SPLP-A, SSW-G, TBB. Also, own the commons NLY and GLOP, which help juice my yield.

Mine doesn't change much. I flipped LMHA back early in the year and added GLP and PBI more recently.

Am I the only one left holding SPLP-A? I'm too close to this 30% put at par to bail now. The price has to start being impacted by this at some point in the near future, right?

I still have my SPLP shares...


The thing that I wonder is can we put more than 30%... IOW, the total put is 30% but if some do not put then we should be able to put more.... right?


It is my largest pref holding... just for the put option... and if the price goes up enough when time to put I will sell it all at a nice profit...

 

[MooreBonds]

The thing that I wonder is can we put more than 30%... IOW, the total put is 30% but if some do not put then we should be able to put more.... right?

This is what the prospectus says:

Holders of the SPLP preferred units will have the right to require SPLP to repurchase up to 525,000 SPLP preferred units (as such amount may be reduced pursuant to the immediately following sentence, the “optional redemption amount”) on the third (3rd) anniversary of the original issuance date of the SPLP preferred units (the “optional redemption date”) at a redemption price of $25.00 per SPLP preferred unit plus accumulated and unpaid distributions, if any, on such SPLP preferred unit to, but excluding, the redemption date, in cash. The optional redemption amount shall be reduced by the number of any SPLP preferred units called for redemption by SPLP (on a pro rata basis) in cash prior to the optional redemption date. The General Partner will give notice of such repurchase option to the SPLP preferred unit holders at least 30 days prior to the optional redemption date. If SPLP preferred unit holders elect to have SPLP repurchase an aggregate number of SPLP preferred units in excess of the optional redemption amount, SPLP shall repurchase such SPLP preferred units on a pro rata basis (based on the relative number of SPLP preferred units that such SPLP preferred unit holders have elected to be repurchased in such optional redemption) up to the optional redemption amount.

So it sounds like if there is a low response rate, then you would be able to tender as many shares as you indicate. As a side note, while the prospectus references an actual number of 525,000 shares possible to be put back to the company, Mulligan had said that subsequent offerings of the SPLP-A increased that number, such that the overall % is about the same.

 

[Mulligan]

Beauty of standing order. I set up a sell order for GFNCP for 103.70 GTC+ext in my TD account. Sale was executed this morning pre market. Close last night was $100.85. Meanwhile my order with fidelity for the same amount was not executed despite the price being the same. The pre hours sale went all the way up to $108.

Congrats Ngine!

 

[Mulligan]

This is what the prospectus says:









So it sounds like if there is a low response rate, then you would be able to tender as many shares as you indicate. As a side note, while the prospectus references an actual number of 525,000 shares possible to be put back to the company, Mulligan had said that subsequent offerings of the SPLP-A increased that number, such that the overall % is about the same.

I have been out of this for a long time...My memory is dim here. I bought a decent amount of PPL at 28.74 yesterday (common stock). Repurchased PPX for the umpteenth time today at 25.40. Been a very profitable flipper the past 6 weeks or so. Bought 100 more of BBB- LXP-C on drop this morning. Bought and sold it a few times past few weeks for a couple easy bucks and still getting the divie, but ultimately it is now my biggest issue I have.
Plus 6% higher quality and uncallable. Hard to find that much anywhere anymore.

 

[brokrken]

I can’t imagine that there would be untendered shares considering the current price.

 

[Winemaker]

I'm still holding about 1000 SPLP shares at a average cost of about $21. Steady as she goes!

 

[MooreBonds]

I can’t imagine that there would be untendered shares considering the current price.

I would expect that as well - but many times people don't know what it is they own. I'm sure a number of shareholders received SPLP-A when the parent company purchased other firms, and don't have a clue what they have (you think they read that 50 page prospectus? . Some may think "I'm not selling to the company, I'm holding, the company must be trying to screw me over". But given that they are only calling less than 20% of the outstanding shares, I'm sure it will be over-subscribed.

I might pick up another 100 in the next few months with accumulated interest payments if the company still looks strong.

 

[Mulligan]

Keep a watchful eye on company financials...This preferred is very complicated in how its set up. And the benefit of this complexity is not to the benefit of the preferred shareholder.

 

[RE2Boys]

Someone is buying up sock drawer CNLPL yesterday and today for $60 a share. I've several hundred shares of CNLPL and it's sister CNTHP and have had a long standing GTC sell order for 10% of my holding that executed yesterday. Now to decide if I want to offer more for sale. All purchased under $52.50 many years ago.

 

[pb4uski]

I like the credit but just can't get enthused to buy a callable issues with a $51.84 call price for $60. I don't even mind a 5.4% yield for an A- rating. What am I missing that those who are buying at $60 know that I don't? I realize that the risk of a call is low but the premium is 2 1/2 years worth of interest.