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Old 07-17-2019, 03:27 PM   #4461
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1. Sit in cash and wait for the next big correction in the preferred market. We had one in Dec. 2018 (you're seeing the recovery from that in your YTD gains now). I did a lot of buying there. Trouble is, since 2012 there have been only 2 events like that - one in 2013 and one in late 2018. Who knows when the next one will come.
Not true. After the 2013 correction there was pretty nasty correction in August 2015, then again in February 2016, then November 2016, then January 2018 and again November-December 2018. I sold out my preferred and baby bond holdings that I purchased in December back in March and April after realizing gains as much as 19%. My cash is earning 2.38% waiting for the next correction. Right now I am holding 80% short and medium term bonds/notes and 20% cash. I'm not buying anything and just waiting for the next sell-off which will arrive in due course.
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Old 07-17-2019, 04:07 PM   #4462
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Not true. After the 2013 correction there was pretty nasty correction in August 2015, then again in February 2016, then November 2016, then January 2018 and again November-December 2018.
I can't agree or disagree that these were all periods of general declines in the preferreds. I just looked at a couple of my holdings that go back a few years, and I see a decline from about Aug-Nov 2016. However that was from what I remember as very high prices (nearly $30) back down to their normal levels of $26-27 range.

The year-end 2018 decline was much more obvious- everything I owned went below par. I used every loose dollar I had to buy more of what I already had, and added to my income very handsomely. I "knew" they wouldn't stay below par, and even if they did, I was buying income at 6-7% instead of the usual 5.5-6%.
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Old 07-17-2019, 04:18 PM   #4463
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Like many, I have been holding to the Preferred Stocks in my portfolio, and occasionally flipping and/or swapping some for better yield, or longer call protection.


Added some new ones like SR-A, SREA, and NEE-N, yields way lower than what I had hoped, but these have all gone up too, and the yields are now in the very low 5% range, which is disappointing.


If rates remain low for a protracted period, will likely not see much decline of prices from their current high level.
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Old 07-17-2019, 08:38 PM   #4464
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I have been peeling off some SR-A today. It was an easy ride up to over $26.70. I was way overexposed there. Been quietly building my position of Canadian Utilities Series DD from $15.46. Bought most of them in that range a month ago or so. Did pay up for 200 more at $16.16 today.
I bought too much of NYCB-U a few weeks ago at $47.80-85 to beat the oncoming rise for the approaching interest payment. Keeps moving up. Dont know how long I will be here.
As most said its slim pickings for relative bargains (no absolute bargains in the quality issues...Wanted to do like Winemaker and buy some AHT preferreds. But I just dont have the nerve for that type anymore...Getting old I guess.
Most of what I have that trades keeps creeping up almost daily it seems. Of course I have some that never trade... Own a few Canadian resets that have sputtered but I want them to go down so I can buy round two.
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Old 07-24-2019, 03:46 PM   #4465
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Said good bye to an old friend today. Sold 200 shares of FIISO at $150. Bought at $102, 3 yrs ago and collected 8.4% QDI for 3 years plus. Time to pay Uncle Sam. Basically used proceeds to buy noncallable busted convertible BBB- industrial reit, LXP-C at 53.76. That issue has been a fun profitable flipper several times in past month as it sometimes jumps up and down over a buck during a day. Today alone it range from almost $55 down to my near market close purchase at $53.76.
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Old 07-24-2019, 04:57 PM   #4466
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Mully, heck of a nice gain on FIISO!
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Old 07-26-2019, 02:22 PM   #4467
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Well, have to make a decision...


Bought some PYS for a quick flip early this year but did not flip them...


Now Origen LLC is making a tender offer of $18 per share for them... this means something is up but I cannot find anything... I see that this company has made tender offers on other pref shares but can not see what has happened to those issues...


Anybody have any idea on what is going on?
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Old 07-29-2019, 05:57 AM   #4468
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Texas Origen was the outfit that tendered for non callable JBK at $25.50 or so last year...Its now over $29 that didnt tender. They are out for themselves to make a buck...The difference here is the company that issued the debt of this tender is a dinosaur business in a horse and buggy business. Stock is way down credit stressed . I would tender but that is coming from a person who would never have bought the issue to begin with because it is out of my credit profile comfort zone. So that basically means I have no advise for you, lol.
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Old 07-29-2019, 10:26 AM   #4469
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I came across a new issue: AIRTP. It’s a Trust Preferred for AIRT, a logistics-based firm that appears to have decent growth and financials. The AIRTP was issued to existing shareholders recently as part of a stock split (don’t worry if you look at a chart of AIRT, and see it dropping off a cliff! – some charts don’t reflect the stock split.)

The interesting thing is that many small holders may not want odd lots of some preferred that they don’t understand or don’t want, and given the newness of the issue, it’s currently trading slightly under par (par is just $2.50). Currently bid/offered at $2.40/$2.45. I picked up 1,400 at $2.45. Coupon is 8%, for both AIRTP and the underlying debenture held by the trust. Callable 2024, final maturity 2049.

Seemed like a decent risk/reward for some new cash I had.
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Old 07-29-2019, 11:21 AM   #4470
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MooreBonds, I will check out AIRTP, thanks for the heads up. I am not familiar with the company, but at $2.45 with an 8% yield, the risk/reward ratio is not bad.


I might just buy a few hundred for the heck of it.


Today was another sad day for my sock drawer community - another long time resident decided to leave. Fortunately, not all left.


CNTHP, which I have held since 2016 - sold a few hundred shares @ $59.00. My cost basis was $52.75, so had a nice gain. Maybe I can buy them back at a later date.


Update: I decided to live dangerously, and rather than take up bungee jumping or skydiving, bought 500 shares of AIRTP at $2.45. Now the fingernail biting starts.......
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Old 07-29-2019, 11:29 AM   #4471
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MooreBonds, I will check out AIRTP, thanks for the heads up. I am not familiar with the company, but at $2.45 with an 8% yield, the risk/reward ratio is not bad.


I might just buy a few hundred for the heck of it.


Today was another sad day for my sock drawer community - another long time resident decided to leave. Fortunately, not all left.


CNTHP, which I have held since 2016 - sold a few hundred shares @ $59.00. My cost basis was $52.75, so had a nice gain. Maybe I can buy them back at a later date.


You will some day, I am sure, Coolius!
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Old 07-30-2019, 03:38 PM   #4472
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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.
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Old 07-30-2019, 04:49 PM   #4473
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Here are mine: not much overlap... in fact, no overlap!

ACGLP, AEH, ALLPRD, ALPPRQ, AXSPD, BACPRM, BBTPRE, BKPRC, DUKPRA, HAWLN, HIGPRG, IPLDP, IPWLK, JPMPRH, METPRE, PNCPRQ, PSAPRU, SCEPRL, USBPRO, WFCPRT
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Old 07-30-2019, 05:36 PM   #4474
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But, PB, at least most of yours are recognizable to the eye though! [emoji106]
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Old 07-30-2019, 05:49 PM   #4475
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Yeah, pretty plain vanilla.
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Old 07-30-2019, 06:29 PM   #4476
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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.
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Old 07-30-2019, 07:17 PM   #4477
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Coolius, your gonna cry like a baby if next trade on FIISO is $125....Your gonna “lose” $2500 real quick. [emoji23]
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Old 07-30-2019, 08:39 PM   #4478
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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......
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Old 07-31-2019, 12:40 PM   #4479
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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.
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Old 07-31-2019, 03:05 PM   #4480
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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.
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