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Old 06-06-2016, 02:53 PM   #741
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On June 3, 2016, Baltimore Gas and Electric Company issued a notice of redemption for all of the outstanding shares of its 7.125% Cumulative Preference Stock, 1993 Series (CUSIP No: 059165779) and 6.99% Cumulative Preference Stock, 1995 Series (CUSIP No: 059165761) on July 3, 2016 (the Redemption Date), at a redemption price of $100.00 per share, plus the amount equal to all accrued and unpaid dividends on each share of each of the foregoing series of preference stock from July 1, 2016 up to, but not including, the Redemption Date.


Major suckage! I looked headlines but couldnt find anything...I bought 300 of the 6.7 issue...I wonder if it escapes call?


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Old 06-06-2016, 03:02 PM   #742
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Major suckage! I looked headlines but couldnt find anything...I bought 300 of the 6.7 issue...I wonder if it escapes call?


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Saw it in an 8K filing...

Was looking to see when the ex divi date was and ran across the call...


Edit.... well, owned the stock 2 hours!!! Sold for an 80 cent per share loss... not too bad... just a cost of doing this kind of trading...
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Old 06-06-2016, 03:12 PM   #743
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Saw it in an 8K filing...

Was looking to see when the ex divi date was and ran across the call...


Edit.... well, owned the stock 2 hours!!! Sold for an 80 cent per share loss... not too bad... just a cost of doing this kind of trading...


I just got home from golfing and rushed the trade... Got lucky that I bought BGLEN though... To steal a favorite Captain Kirk lime from Wrath of Kahn... I got caught with my pants down.....
80 cents is about what I will lose holding them to call. May just do it anyways as punishment! Need to put some of my investing dollars in the "Time Out" from bad investing behavior!


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Old 06-06-2016, 05:17 PM   #744
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Just checked into hotel, and saw all this. Yuck .

So which ones are being called? I know BGLEI is one, what is the other?

Oh well - just have to look for a replacement. Too bad the gravy train has made its last stop.
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Old 06-06-2016, 07:11 PM   #745
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Just checked into hotel, and saw all this. Yuck .

So which ones are being called? I know BGLEI is one, what is the other?

Oh well - just have to look for a replacement. Too bad the gravy train has made its last stop.


Yep it was BGLEP and BGLEI... I bought one that got called and some of the other that didnt. But it is just a matter time for the other 2 to go.
You know last year when both bought some on that day 50,000 shares were dumped we were worried it was a call dump and it wasnt... Well I got greedy buying a few hundred again thinking maybe it was like last time.....It wasnt...oh well... It wasnt like an Enron event or anything.


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Old 06-06-2016, 08:56 PM   #746
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Just checked into hotel, and saw all this. Yuck .

So which ones are being called? I know BGLEI is one, what is the other?

Oh well - just have to look for a replacement. Too bad the gravy train has made its last stop.
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Yep it was BGLEP and BGLEI... I bought one that got called and some of the other that didnt. But it is just a matter time for the other 2 to go.
You know last year when both bought some on that day 50,000 shares were dumped we were worried it was a call dump and it wasnt... Well I got greedy buying a few hundred again thinking maybe it was like last time.....It wasnt...oh well... It wasnt like an Enron event or anything.


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Yes, those are the two being called.... I would sell tomorrow if I were you if possible as the divi is not as high as what they are selling for right now... that is why I turned around and sold mine the same day...

Now, if they were trading under the call price plus divi I would have held it for the month....

This is also why I do not want to shell out $30 for some of the $25 call price shares... I got lucky on this by not finding the ex divi date and looking at their SEC filings... if I had not I would have lost $3 per share instead of only 80 cents....
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Old 06-06-2016, 09:24 PM   #747
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I have to take my beating like a man....I used unsettled funds to buy...Not a big loss but just ticked over the matter... Usually they kick up by a press release... I should have checked deeper. I actually do own 100 that I bought a few weeks ago...I was so ticked I forgot about selling them.


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Old 06-06-2016, 09:37 PM   #748
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Sorry to hear of your losses, Texas & Mulligan.

But all of us knew the call risk going in, so it cannot said that was unforeseen. We were all just hoping it would not be called for a while more.

Yet another lesson to newbies that there is Risk in EVERYTHING, no matter how safe or solid a stock appears.

This call makes it 4 this year for me. I'm hoping no more get called, but I have several that are in that risk category, so understandably a little nervous.
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Old 06-06-2016, 10:01 PM   #749
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Sorry to hear of your losses, Texas & Mulligan.

But all of us knew the call risk going in, so it cannot said that was unforeseen. We were all just hoping it would not be called for a while more.

Yet another lesson to newbies that there is Risk in EVERYTHING, no matter how safe or solid a stock appears.

This call makes it 4 this year for me. I'm hoping no more get called, but I have several that are in that risk category, so understandably a little nervous.


This is the first one for me since our brief ownership of ELUOP (I think that was the ticker) Remember that one last summer?


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Old 06-06-2016, 10:04 PM   #750
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This is the first one for me since our brief ownership of ELUOP (I think that was the ticker) Remember that one last summer?
Surely you have not forgotten DQUEK ?
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Old 06-06-2016, 10:10 PM   #751
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Surely you have not forgotten DQUEK ?


I thought that one got called prior to ELUOP? Am I mistaken? They were pretty close though either way. And we were holding hands on that one too. That is when we developed theory that anything near. 6.5% perpetual was an extreme call danger. Those however both are the only calls I have had. But unlike BGLEP fiasco, I still made a tiny bit of money on those. Not so today!


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Old 06-06-2016, 10:18 PM   #752
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I had HUSI-H, GUA, BOCA and now BGLEI called this year.

Yep, definitely no fun. Including dividends, I did OK on them, though not as well as I'd hoped.
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Old 06-06-2016, 10:24 PM   #753
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As you guys know, I own a few preferred stocks and read this thread regularly. My percentage of preferreds fits my risk tolerance as I need to be careful at my age (72) and not lose too much of my stash, which is not immensely large due to some bumps in the road (women, divorces, fast cars, etc).

I have a mix of dividend paying stocks which have treated me quite well over the long run. I also have some index funds and some bonds so I feel I am diversified. I still seek income as I am pulling RMDs (thanks to Sam).

So that's the reason I hang out here, but today's posts gave me a warning about call provisions. It's evident that one must not pay too much above par for these stocks in a low rate environment. You all know that. But it's easy to get glossy eyed over the dividend and not pay attention to the potential for a call or that you paid a large premium that can only be recouped with several dividend payments.

I wonder if it's prudent to place long term stop loss orders below your purchase price on these securities in the event that there is a run by holders to sell? Comments?
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Old 06-06-2016, 10:55 PM   #754
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This is the first one for me since our brief ownership of ELUOP (I think that was the ticker) Remember that one last summer?


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Yes, I was so happy to have picked up (I think) about $2,500 worth of ELUOP during the day....then later that same evening, they issued the release that they were calling it.
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Old 06-06-2016, 11:09 PM   #755
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Yes, I was so happy to have picked up (I think) about $2,500 worth of ELUOP during the day....then later that same evening, they issued the release that they were calling it.


So you had a brief romance with her too, huh? She lead a bunch of us greedy safe yield chasing bozo's to the alter and dumped us!


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Old 06-06-2016, 11:17 PM   #756
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As you guys know, I own a few preferred stocks and read this thread regularly. My percentage of preferreds fits my risk tolerance as I need to be careful at my age (72) and not lose too much of my stash, which is not immensely large due to some bumps in the road (women, divorces, fast cars, etc).



I have a mix of dividend paying stocks which have treated me quite well over the long run. I also have some index funds and some bonds so I feel I am diversified. I still seek income as I am pulling RMDs (thanks to Sam).



So that's the reason I hang out here, but today's posts gave me a warning about call provisions. It's evident that one must not pay too much above par for these stocks in a low rate environment. You all know that. But it's easy to get glossy eyed over the dividend and not pay attention to the potential for a call or that you paid a large premium that can only be recouped with several dividend payments.



I wonder if it's prudent to place long term stop loss orders below your purchase price on these securities in the event that there is a run by holders to sell? Comments?


Women, divorces,and fast cars are enough options to be separated from ones money... Adding a fourth (way over par, past call issues) doesnt seem needed does it, ha!
I dont have a good answer, Aja. Like I mentioned ALL the BGE preferreds had massive sell dumps last summer/fall. One was 50,000. And dropped price around $101. In that scenario, you would have got scalped. As it was just a dump from some institution, and price recovered in a few days.
Its just getting harder....last year you could buy issues under a dividend past call, so the risk was zero as dividends were declared already. Now many are climbing 2-3 dividends past call price increasing the risk. You really have to go to the older 5% and under utility preferreds to get around call risk. I dont have an answer on how low I am willing to go. I really have to keep most of mine in 15% QDI, so that compounds the problem.


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Old 06-07-2016, 05:42 AM   #757
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I forgot to add, Golden, it is the size of the preferred issues that screams call. For example BGE, has only 4 preferred issues. They cumulatively yield close to 7% collectively, and are nearly 200 million dollars in total issue. Considerable savings could occur by simply calling and reissuing in low 5% range which is current rate for current utility preferreds of save investment grade ratings not yet callable. Sent from my iPad using Tapatalk
Sorry to hear about your loss Mul. When I read this I was reminded of this post from you that schooled me on the call danger. I diligently crossed it off my list at that time. Thanks for the warning.
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Old 06-07-2016, 10:21 AM   #758
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Sorry to hear about your loss Mul. When I read this I was reminded of this post from you that schooled me on the call danger. I diligently crossed it off my list at that time. Thanks for the warning.


I am glad I helped you, Golden. I need to do a better job of listening to myself now! The first step in making money is to avoid losing it. Oh well, Ihave had such a good year this year, a few hundred wont ruin it... But it does cause one pause on the other above par past call issues though... Last year buying above par less than 1 dividend above par with dividend already declared was fairly common. Now most are 2-3 above... Not a lot of options now to enter that is above 5% and at par in utility area.


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Old 06-07-2016, 10:34 AM   #759
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Yes, things are frothy. A while back I picked up 200 more shares of CHSCM for ~$25. Today they are ~$27.80. Nice gain, but if I sold, what would I buy?
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Old 06-07-2016, 10:37 AM   #760
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Yes, things are frothy. A while back I picked up 200 more shares of CHSCM for ~$25. Today they are ~$27.80. Nice gain, but if I sold, what would I buy?


Yes sir, that is the problem. At least you are call protected there... All safe higher valued ones have been bid up... The only other option is gambling in the high yield section...But that is something I am not willing to do.


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