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

[Running_Man]

Quote:

Originally Posted by Texas Proud Running Man... Wells is not the largest bank.... banks ranked by total assets... Rank Bank nameTotal assets1JPMorgan Chase & Co.$2.42 trillion2Bank of America Corp.$2.15 trillion3Citigroup Inc.$1.77 trillion4Wells Fargo & Co.$1.75 trillion5U.S. Bancorp$415.94 billion6Bank of New York Mellon Corp.$377.37 billion7PNC Financial Services Group Inc.$362.13 billion8Capital One Financial Corp.$313.7 billion9HSBC North American Holdings Inc.$291.61 billion10TD Bank U.S. Holding Co.$253.2 billion Now, it used to be able to say it was largest by market cap, but not anymore... JPM passed it by... I also think the market cap is going to continue to go down since there are a lot of local gvmts saying they are going to stop doing business with them... but this will not show up for a year or two...

You are correct they fell to #2 with their September swoon

[Mulligan]

I will worry about CHS being able to pay when CHSCP trades under $24.25. That was the low point of stock price in 08-09 great recession. The recent price drops needed to happen, it was trading too high. Its reasonable now (not CHSCP though), though it could drop some more and be under no undue pressure. They just gave 3.5 million donation to U of Minn. They damn well wouldnt be doing that if they owned by butt some dividends, lol.

[Mulligan]

Slow, I forgot to mention, ya better sit down when I say this....I bought 400 shares today of AHT-A, at $25.12 and $25.16.... After I heard the debt load has been rolled over and some cash raised from a couple properties sold, I went in. I think it will be called soon, and I will collect money until it does. AHT preferreds I grudgingly admit performed like rock stars during Taper Tantrum. It also fits close to my strategy of owning issues that should be called but havent yet.

[Texas Proud]

Well, crap....

Bought AES-C for a flip... I sold today thinking I was doing good... but NO... forgot what I had paid a few days ago... when I looked I saw what I had paid for my permanent holdings which was a lot less....

SOOO, instead of making $200 ish, I will be walking away with only $50...


Well, at least I will have money to buy something that pays at the end of the month...

[Mulligan]

Texas, you know you scalped the dividend today, correct? You got 84 cents coming in 5 days if you sold today.... I sold my last 200 today at $50.62... I traded this issue way too much the past couple of months. I was getting a bit too comfortable owning it as I had over 500 shares at one time. Some good easy money...Will keep my eye on it..

[Texas Proud]

Quote:

Originally Posted by Mulligan Texas, you know you scalped the dividend today, correct? You got 84 cents coming in 5 days if you sold today.... I sold my last 200 today at $50.62... I traded this issue way too much the past couple of months. I was getting a bit too comfortable owning it as I had over 500 shares at one time. Some good easy money...Will keep my eye on it..

Yes, I knew I got the divi, but I 'lost' 65 cents per share on the sale... so, I only made .19 per share... when I looked I saw my original purchase which was 50.15 per share... thought I was doing good selling if for $50.55....

So, now I know I only made $38....


Now, my previous flip I made $185 holding for 12 days... this is what I am hoping to do...

I bet that in a few days AES-C will be closer to $51 or even over...

To me, it is a good lesson... I will have to keep track more... and I am thinking about only buying shares I do not have in my permanent portfolio....

[Mulligan]

I love learning lessons the hard way that still puts money in my wallet, lol.
I just got way out of hand with this issue the past couple months. I was getting to treat it like an Ally online savings account. I need to step away from it for a bit and respect the risk a bit more. And now I got 400 shares of AHT-A ( I swore I would never do it but I did) I need to tighten up my flips a bit. Runningman is giving me buyers remorse on CHS. I will keep CHSCO, as it is a stronger trader ( CHSCP is just outrageous, only the old senile farmers must own and never sell that one) than CHSCL. But I may shed CHSCL quickly and see if more drop-age occurs.

[Mulligan]

Well this week was a good one. Not only did I snag a 100 more shares of the near mythical AILNP, I avoided egg on my face as the next divi was declared today for the January cycle... I also bought 400 more shares of AHT-A yesterday at $25.09 to bring total to 800. It is being called soon per prospectus of new issue they are floating now. Its already an in the black trade. Just going to see how many days it takes to call.Each day it drags out is .57 cents per share in my pocket. Bought 200 more UBP-F today at $26.15 that hit while golfing. It has a nice juicy divi going exD next week. It appears I got lucky with CHSCO and CHSCL buying at a near term low as they have jumped nicely past 2-3 days. If they were in my Roth or HSA I would have flipped out. But a 31% tax cools my heels to do this, so I will hold for now.

[Coolius]

Way to go, Mulligan. Glad you had a good week in the markets.

For me, good weeks have been few & far between, since beginning of September, and this week was no exception, more declines for the most part.

I sold a few positions of Preferreds that had low 5.2%-5.5% yields, anticipating that over the next few weeks there will be opportunity to buy them back somewhat lower.

Had an order for 400 shares AHT-A that filled when I was away from the computer, at $25.11. Not as good as your price, but like you, i will be in the black with the usual 30 day accrued interest, when it is called.

Anticipate more nervous selling of interest sensitive stocks as the November FOMC meeting approaches - simply amazing how investors slice off 2%-4% of an entire company's value because they may have to borrow money at 25 bps more than in the past.

Indeed these are, like Confucius says, " interesting times ".

[Mulligan]

Ooops, Reading your purchase post made realize, I didnt write mine correctly. I bought yesterday 400 shares at 25.09, but two days before I bought 200 at $25.12 and 200 at $25.16 before this call thing came out. So in total, not as good as yours. Remember you always out do me by a few cents as you are not so trigger happy!
I really like that UBP-F, up to 600 shares now.
I have been trading so much in my HSA and Roth, I was about to seal up the quick CHS profits, I remembered, hey you got this in taxable, it needs to be kept.
And my flip cash got smaller.... Had to stuff AILNP into my Roth which is not cool since that is 7.5% QDI.... But I was out of taxable cash and unwilling to trigger more taxes by selling anything.
I really havent noticed much any losses in my issues and actually some gains. Probably because of some lucky flipping and owning considerably more in illiquids...
AILLL is holding strong I see. Somebody had a 500-600 bid at $26.50 and nobody is willing to sell to them yet...Interesting.
This would be the perfect time to be loaded to the absolute gills with AHT-A at $25.09 and see how many free nickels get tossed our way.

[Coolius]

My guess, FWIW, is that there will be a full AHT-A, and partial AHT-D call next week. Hope I am wrong.

They will realize about $150M from the new issue, enough to fully call AHT-A ( $50 Million ), and the balance should retire some of AHT-D ( $200 Million )

[Mulligan]

Quote:

Originally Posted by Coolius My guess, FWIW, is that there will be a full AHT-A, and partial AHT-D call next week. Hope I am wrong. They will realize about $150M from the new issue, enough to fully call AHT-A ( $50 Million ), and the balance should retire some of AHT-D ( $200 Million )

So.... should we consider flipping out into the D's and let it play out? At SI, poster told me they do proportional calls. I assume he knows this better than I do...More meat on the bone going there?

[Coolius]

Assuming they utilize the entire proceeds of the new issue, they could call AHT-A in its entirety, and up to 1/2 of AHT-D.

So if you bought 200 shares AHT-D, you will be guaranteed keeping 100 shares or more, and continue to ride the gravy train, until the company can come up with enough money to retire the rest. That might be a while, so one can enjoy the high yield until then.

Buying AHT-D below $25.15 ( assuming free trade ), should assure you of a few cents/share using the same calculation as for AHT-A above, as their coupon rates are very close to each other.

Good point there - I will need to decide if I wish to add AHT-D. probably will not sell AHT-A as a call is all but certain, will wait and take the call proceeds.

[Mulligan]

This is not the type of company I like at all.... But oddly enough this situation is unique and provides a relative safe trade... You bring up a good option and I like it... I got 11k in my HSA in cash... Instead of flipping out of AHT-A, I will hold, and buy 400 of AHT-B and hold both... My Lord if this wasnt a near sure thing and they hadnt rolled over their debt recently, I would be sending myself to the Insane Asylum and making a family member take over my finances... This outfit would be my biggest holding by far outside of my Amerens that still dwarf it... But I like the trade.

[Mulligan]

Well that was easy money for me and Uncle Sam. About $265 for me and about $120 for Uncle Sam. I couldnt resist, I sold both CHSCL and CHSCO today. On to something else!

[Mulligan]

BTW- I chickened out and never bought AHT-D... Still thinking about one more bite of the AHT-A call apple though.

[Winemaker]

Finally, I pulled the plug on 80% of my PGX last week. It's been a great ride but after falling $0.25 during the past month, to me, the handwriting is on the wall. Acquired during the Great Recession below $11.00, it has been a great ride. I don't have anything to replace yet.

It's okay to be a bear, or a bull but never a pig. Pigs get slaughtered.

[Mulligan]

Quote:

Originally Posted by Winemaker Finally, I pulled the plug on 80% of my PGX last week. It's been a great ride but after falling $0.25 during the past month, to me, the handwriting is on the wall. Acquired during the Great Recession below $11.00, it has been a great ride. I don't have anything to replace yet. It's okay to be a bear, or a bull but never a pig. Pigs get slaughtered.

Come on Winemaker, quit hiding out in those sissy preferred funds...If you can make wine, you can definitely buy only individual preferreds on your own.

[Winemaker]

I had 6 figures in PGX, 6 figures in individual issues in roughly $5,000 increments. I feel confident in my individual issues, not so much in PGX, hence the sale.

I make wine to savor the flavors and I enjoy the effort to produce a wine that is better than what professionals can make, for less money.

I invest money to make positive returns and I enjoy the effort to produce returns that are better than what I may have to pay professionals.

I'm up 14.2% over the last 12 months. I'm enjoying a 2015 Barbera as we speak......

[Mulligan]

See, I was right! I knew a man confident in his wine making skills, could create a fine tasting portfolio too. . I assumed this wasnt the major piece of your preferreds as we have talked about your individual issues. I was just trying synch wine in with the conversation.
There is a possibility that maybe I should have bought your PGX shares today, as I went a bit nuts today.... Bought 400 more shares of AHT-A which gives me 1200.... Just waiting for the call and collect the easy money...Now that one wasn't the problem though, that was a layup trade. The problem one was buying 300 shares of BANC-C. Some internet blogger sent out a post that caused the common shares of BANC to crash hard and dropped preferreds too, trying to connect dots of a fraudster being connected to bank through associates. Leading of course to conclusion of fraud at the bank. Well I took the bait on their 8% preferred (the oldest one and nearest call) as it sagged hard and went under par which I grabbed....We shall see how this plays out... Probably should have gambled on the commons as that would be where the biggest pop would occur if this leads to nothing. This forum pulled the same act on Bank of Internet a few months back and caused its common the crash and their preferred to plummet. They have since recovered.