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

[Mulligan]

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Originally Posted by Texas Proud Yes I did... but it has dropped about $1 per share just in the last month... Also some bad news that just does not go away.... rather get my $8 something than nothing...

I understand.....There have been an Ahole or 2 SA writers touting that thing from $16 down...And yet they always say they are making money on it through their hedging or whatever...Such BS! If they have a forum to tout they just will never be a man and admit to losses....They are investing geniuses! That is why hawk their services for pay...If they were so great why would they need to hawk their services to make money? They could just make plenty with their own!

[Mulligan]

Loaded up on KTH recently at $29.22 range. Bought 1300 shares of ALLY-A at 25.67 and 65 yesterday...They already determined next divi, so its a safe trade/play at this price point.

[Mulligan]

Scoring nicely on 400 shares of SCE-G bought 18.45 at market open today...That was a calculated dumpster dive off premarket common stock movement. Bought 218 shares at below 52 week low of SOCGM at 27.48 a couple days ago. A tiny old float that doesnt trade much.

[Texas Proud]

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Originally Posted by Mulligan Scoring nicely on 400 shares of SCE-G bought 18.45 at market open today...That was a calculated dumpster dive off premarket common stock movement. Bought 218 shares at below 52 week low of SOCGM at 27.48 a couple days ago. A tiny old float that doesnt trade much.

Holy cr#p.... it went up $1.63 today!!!




AHHH, a 10 day shows it dropped like a rock the last few days... now looks like it is going back up..

[Mulligan]

Quote:

Originally Posted by Texas Proud Holy cr#p.... it went up $1.63 today!!! AHHH, a 10 day shows it dropped like a rock the last few days... now looks like it is going back up..

This was kind of a lay up...CA regulator came out last night saying they dont want PCG and EIX bankrupt... Common stocks of both were up in premarket 10% plus. Preferreds hadnt traded yet. So I picked an entry point 75 cents above yesterdays close and had bid in que before market opened. Many times on preferreds people leave standing bids hoping to catch a spike. Well it worked against them this time. My order filled right at market open. If I had any courage I would have put a 1000 share order in. But this already casino investing, and I didnt want to push my luck. I chose EIX over PCG because if it hadnt worked, I at least wanted a preferred that is still paying its dividend.

[bobandsherry]

Caught ALLY-A on the dip early yesterday, bought in another 500 shares @$25.42. Even if there is a call, and I'm not expecting one, the 52 cent dividend still above the premium above call paid. Also had a buy sitting out there for CDMOP $23.99 and snagged a couple hundred on the dip there too.

[Mulligan]

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Originally Posted by bobandsherry Caught ALLY-A on the dip early yesterday, bought in another 500 shares @$25.42. Even if there is a call, and I'm not expecting one, the 52 cent dividend still above the premium above call paid. Also had a buy sitting out there for CDMOP $23.99 and snagged a couple hundred on the dip there too.

Good trade pick up price on ALLY-A, Bob! I was watching on level 2 and saw it hit $25.40...I wanted so bad to buy more...But I made my bed of 1300 total shares at 25.65 and 67 and was going to lay in it. I just couldnt break my rule to overexpose myself even more. I certainly wish my price point was yours!

[Texas Proud]

Well, I got to give the bad with the good... this is updating my flipping I have been doing all year.. I went in a lot more this year than last, but have slowed down a LOT lately as the shares just are not recovering at all or are very slow to do so...


I currently have 2 lots, both underwater a bit... but one ex yesterday... with my projection I will have made almost as much as I did all of last year but with more money invested.. YTD annualized return is 18%... if you go with all money all the time (as one person said I need to do) then it is 12%... still better than buy and hold but not as high as I was doing before Aug.. I was in the 30% range then... since Aug I have actually lost $1400 to bring YTD income down to $2700....


Still something that is interesting to do, but I was hoping for a much better year... I was going at a $6900 pace but will probably be around $3000...

[Mulligan]

Quote:

Originally Posted by Texas Proud Well, I got to give the bad with the good... this is updating my flipping I have been doing all year.. I went in a lot more this year than last, but have slowed down a LOT lately as the shares just are not recovering at all or are very slow to do so... I currently have 2 lots, both underwater a bit... but one ex yesterday... with my projection I will have made almost as much as I did all of last year but with more money invested.. YTD annualized return is 18%... if you go with all money all the time (as one person said I need to do) then it is 12%... still better than buy and hold but not as high as I was doing before Aug.. I was in the 30% range then... since Aug I have actually lost $1400 to bring YTD income down to $2700.... Still something that is interesting to do, but I was hoping for a much better year... I was going at a $6900 pace but will probably be around $3000...

Well I doubt it had anything to do with you Texas doing anything wrong, as many of the liquid preferreds have dropped a lot lately. I have rotated so much, I keep making money but small amounts...Like my SBNCM for example...I bought 800 shares at $11 and $11.50 about 2 weeks ago...Sold 300 at $15. No not only did I book a small but large percentage cap gain, it currently has the other 500 showing a probable unsustainable inflatable NAV.
My KTH is climbing up nicely....I booked $100 profit, lol, holding SCE-D a week. Only had 100 shares on a partial fill so I flipped. I still got the bigger SCE-G but its up only 30 cents or so.
I bought a few hundred of AHL-C the other day at around $24.80. It dropped like 50 cents, but largely recovered today.
Other than that the rest are not trading or about where they have been largely....I did by a 100 more shares of CNIGO at $26, unchanged from last sell which was a month ago or so.

[Sunset]

I am puzzled, CBB preferred seems to really be dropping. Any special reason.
Anyone else silly enough to have them still ?

[Mulligan]

I dont follow it closely but I suspect some of it is this...They sold off their profitable data storage unit and invested heavily into their core mediocre business. Plus they acquired a telecom outfit in Hawaii this year that was poorly received. And they arent really making any money either...I left the scene after they sold off their data unit a few years ago. That was their money maker.

[Texas Proud]

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Originally Posted by Sunset I am puzzled, CBB preferred seems to really be dropping. Any special reason. Anyone else silly enough to have them still ?

They are not the only one who is dropping like that... I bought PIY for my flipping and it is down about the same amount... cost me a good amount of money I had scrapped flipping this year...



Also, TNP-E is another flip that has dropped after I bought for a flip... down about half of CBB...


SOOO, I think it is a market thing and not company specific...


See if this chart works...


https://quotes.freerealtime.com/quot...symbol=CBB.P.B

[Mulligan]

Quote:

Originally Posted by Texas Proud They are not the only one who is dropping like that... I bought PIY for my flipping and it is down about the same amount... cost me a good amount of money I had scrapped flipping this year... Also, TNP-E is another flip that has dropped after I bought for a flip... down about half of CBB... SOOO, I think it is a market thing and not company specific... See if this chart works... https://quotes.freerealtime.com/quot...symbol=CBB.P.B

Some crap and poorly capitalized companies preferreds have taken some spills no doubt. Many have held strong such as the term preferreds, live adjustables, and of course that rock of Gibraltar better known as AILLL.

[bobandsherry]

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Originally Posted by Texas Proud They are not the only one who is dropping like that... I bought PIY for my flipping and it is down about the same amount... cost me a good amount of money I had scrapped flipping this year... Also, TNP-E is another flip that has dropped after I bought for a flip... down about half of CBB... SOOO, I think it is a market thing and not company specific... See if this chart works... https://quotes.freerealtime.com/quot...symbol=CBB.P.B

Flight to quality, FTR (tied to PIY) is struggling for sure, posting losses. TNP as well. All my preferred are holding up pretty well, none tied to company with financial issues.

[Mulligan]

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Originally Posted by bobandsherry Flight to quality, FTR (tied to PIY) is struggling for sure, posting losses. TNP as well. All my preferred are holding up pretty well, none tied to company with financial issues.

Yes, I am still largely sitting at highs for the year...Had some good bounces on buying SBNCM at $11 and it sits at $15. Sold some at that price..Loaded up on KTH recently in lower $29s and its near $30 now. Utility NiSource is coming to market with a 6.5% QDI that has 5 yr resets tied to 5yr Tbill plus kicker. Im gonna kick the tires there I think.

[bobandsherry]

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Originally Posted by Mulligan Yes, I am still largely sitting at highs for the year...Had some good bounces on buying SBNCM at $11 and it sits at $15. Sold some at that price..Loaded up on KTH recently in lower $29s and its near $30 now. Utility NiSource is coming to market with a 6.5% QDI that has 5 yr resets tied to 5yr Tbill plus kicker. Im gonna kick the tires there I think.

Heh.... if I had your portfolio of preferred's I'd just donate mine to charity The NiSource issue sounds interesting, what's timing of that hitting the market? I'm out of here for a week, hopefully the market gives me a positive surprise when I get back

[Mulligan]

Its out today premarket trading Bob. under temp ticker NISOP. Im in for 400 at 24.88

[Texas Proud]

Quote:

Originally Posted by Mulligan Yes, I am still largely sitting at highs for the year...Had some good bounces on buying SBNCM at $11 and it sits at $15. Sold some at that price..Loaded up on KTH recently in lower $29s and its near $30 now. Utility NiSource is coming to market with a 6.5% QDI that has 5 yr resets tied to 5yr Tbill plus kicker. Im gonna kick the tires there I think.

Missed this post... what is the kicker rate?

[capjak]

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Originally Posted by Mulligan Its out today premarket trading Bob. under temp ticker NISOP. Im in for 400 at 24.88

Qualified or Non?

[Mulligan]

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Originally Posted by capjak Qualified or Non?

Guys, its a QDI 6.5% perpetual. After 5 years it goes to 5 year T-Bill plus 3.63 kicker. It can fit a segment with one wanting an adjustable to the stable. QDI preferreds are almost non existent anymore as they generally prefer issuing debt anymore.