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Old 05-25-2017, 11:14 AM   #1961
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Pig, I saw the AES-C. I have been out a few weeks. People who owned will not get call smacked here due to accrual of divi..Interestingly though the call was clearly let out of the bag May 15 as they had an SEC filing showing a bank loan to be used to pay off AES-C
Yes only minor inconvenience, div accrual easily covered and then some. I also had MHNB, luckily div accrual well past my purchase price also. Kind of figured that one would be called. I play these penny games a lot. Keeps cash at work while I sift thru other stuff to buy (of which unfortunately there is none).
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Preferred Stock Investing-The Good , The Bad and The In Between
Old 05-25-2017, 11:27 AM   #1962
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Preferred Stock Investing-The Good , The Bad and The In Between

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Yes only minor inconvenience, div accrual easily covered and then some. I also had MHNB, luckily div accrual well past my purchase price also. Kind of figured that one would be called. I play these penny games a lot. Keeps cash at work while I sift thru other stuff to buy (of which unfortunately there is none).


Im on my penny chasing ways too. Saw BOFIL get near par so I snagged 400.... I then sold BPFHP at $25.75 as the trade off. I collected a divi holding a month with BPFHP and bought at same price. I like the 2026 backstop to BOFIL.
And I dont like going bank crazy so I sold one to balance the purchase.
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Old 05-25-2017, 12:10 PM   #1963
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Ric, having watched AILLL for close to 19 months, if you intend to be holding a long time after purchase, the difference between $26.20 and current $26.51 is not that huge.

I have seen times where, as Mulligan said, exDiv day price was equal to or even greater than on the day before !

Current ask is $26.94, somewhat high, but you could try a GTC at around $26.50 and hope someone comes down before exDiv day.


Update : Unexpectedly, I had a partial fill of a GTC order for 100 shares AILLL @ $26.51 at around 2:30 EST. They will go into the " sock drawer "
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Old 05-25-2017, 04:52 PM   #1964
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Im on my penny chasing ways too. Saw BOFIL get near par so I snagged 400.... I then sold BPFHP at $25.75 as the trade off. I collected a divi holding a month with BPFHP and bought at same price. I like the 2026 backstop to BOFIL.
And I dont like going bank crazy so I sold one to balance the purchase.

careful on BOFIL, apparently there is some sort of class action thing going on. might explain the big drop last few days (along with the normal post ex div). doubt those things mean anything in the long run. good move on Boston Private.

struck oil today myself, sold some STAG-C on weird price jump on ex div day, so in my mind i get next div payment along with the one qualified today. will buy back in about a month. cleaned out CIM-B also yesterday. portfolio undergoing some maintenance while i still have about a month of free trades to use up.
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Old 05-25-2017, 07:53 PM   #1965
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Anybody know the date of the AES call? Or the price plus divi?

It is my largest pref holding... will have to see what I want to replace it with...

With the various calls that I have endured since first starting this I am hesitant to buy a past call over call price...
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Preferred Stock Investing-The Good , The Bad and The In Between
Old 05-25-2017, 08:16 PM   #1966
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Texas, It is June 22... A lot of accrual for this dividend is built in to pay out... Surprised you have been hit with a lot of calls. I seem to side step them most of the time despite being knee deep in the past calls most of the time...
Pig, yes BOFI seems like its a sister of Bank of California with accusations here and there... BOFIL bounces up and down. I hit it on a down just a few cents above par. This is in my flip pile but will consider holding a while. The common acted fine and was up today. BOFIL started creeping back up after the early morning dump. I rarely will buy if common is dropping with the preferred. But today the preferred dropped and the common was going up. Of course being a debt issue they have to pay of become insolvent unlike a true bank non cum preferred. It will give me something to watch, lol...
Also bought 300 shares of ALMBP yesterday at $25.90. Wanted more today but it wouldnt come back to me. So I bought 100 shares of GLFPN today. Not thrilled to be under SO's umbrella but I checked pretty thorough yesterday how Gulf and Alabama Power are set up. No entanglements with Georgia Power or Mississippi Power financially which have been downgraded. Gulf and Ala. are stable and highly rated with needing no parent support, which their debt is lower rated than the 2 purchased subsidiaries.
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Old 05-25-2017, 08:18 PM   #1967
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Anybody know the date of the AES call? Or the price plus divi?

It is my largest pref holding... will have to see what I want to replace it with...

With the various calls that I have endured since first starting this I am hesitant to buy a past call over call price...
23 JUN 2017 is call date
divi will be .647 cents, so about 2/3rds normal div? something like that.

this was a larger holding of mine as well. only bought a little while ago. kind of bummed myself. no money lost. just a PITA now have to find another one.
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Old 05-25-2017, 08:23 PM   #1968
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Texas, It is June 22... A lot of accrual for this dividend is built in to pay out... Surprised you have been hit with a lot of calls. I seem to side step them most of the time despite being knee deep in the past calls most of the time...
Pig, yes BOFI seems like its a sister of Bank of California with accusations here and there... BOFIL bounces up and down. I hit it on a down just a few cents above par. This is in my flip pile but will consider holding a while. The common acted fine and was up today. BOFIL started creeping back up after the early morning dump. I rarely will buy if common is dropping with the preferred. But today the preferred dropped and the common was going up. Of course being a debt issue they have to pay of become insolvent unlike a true bank non cum preferred. It will give me something to watch, lol...
Also bought 300 shares of ALMBP yesterday at $25.90. Wanted more today but it wouldnt come back to me. So I bought 100 shares of GLFPN today. Not thrilled to be under SO's umbrella but I checked pretty thorough yesterday how Gulf and Alabama Power are set up. No entanglements with Georgia Power or Mississippi Power financially which have been downgraded. Gulf and Ala. are stable and highly rated with needing no parent support, which their debt is lower rated than the 2 purchased subsidiaries.
i have Alabama Power as well, now that AES has been called, its one of my largest holdings. ironically i've had a sell out there at $26.35 and it almost hit once. have every intention of buying it back if it were to sell. will test this one all the way to call date. will put GLFPN on my watch list. not sure i've ever looked at that one to be honest.
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Old 05-25-2017, 08:44 PM   #1969
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Its getting hard in Ute ville to stay near 6%.... GLFPN has been callable since 2010... Goes ExD in 2 weeks so I almost got it near 6%. It was issued in 2005 during normalized interest rate era at 6%. It has had a strong price support through out its trading history. It never even hit $76 during 08-09 crisis when the financial preferreds were getting 50-85% haircuts.
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Old 05-25-2017, 08:45 PM   #1970
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If anyone has an overload of testosterone (or a drop in reasoning skills), take a look at HLM's preferred (HLM- on quantumonline). It is a sky-high coupon of over 11%. HLM is a tool distributor. Been bought/sold a few times over the years, yet the Trust Preferred remains outstanding. I read through their 10-K, and they are actually amortizing the value of the preferred issue against their taxes, AND deducting the interest paid on the Trust Preferreds. Kind of like a double dipping. Would help explain why it still remains outstanding with an insanely high coupon. I bought mine at $33. It's currently north of $34. Has a final maturity in 2027, with a YTM of over 7%.

Somehow it traded all the way down to par a few years ago. Would have been crazy lucky to pick that one up. According to the 10-K, there were relatively few shareholders, with an average of something like 11,000 shares per shareholder!
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Old 05-25-2017, 08:58 PM   #1971
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I couldnt ever find any info on it Moorebonds...It got bought out by a private company and no financials are issued, so I dont know their intentions with it. I remember at the time when it was lower I would have bought it if I knew more about the acquiring company and the safety of it.
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Old 05-25-2017, 09:01 PM   #1972
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by the looks of it, Moorebonds got in pretty good. who would have thought $33 on a $25 par issue would be a cracking deal. if that thing goes the distance that would be sweet.
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Old 05-25-2017, 09:13 PM   #1973
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I couldnt ever find any info on it Moorebonds...It got bought out by a private company and no financials are issued, so I dont know their intentions with it. I remember at the time when it was lower I would have bought it if I knew more about the acquiring company and the safety of it.
Here is a link to their 10-K:

https://materials.proxyvote.com/Appr...10K_324925.PDF
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Old 05-25-2017, 09:16 PM   #1974
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by the looks of it, Moorebonds got in pretty good. who would have thought $33 on a $25 par issue would be a cracking deal. if that thing goes the distance that would be sweet.
When FBS-A was around circa 2010, it was trading at around $23-$24. When they finally resumed their dividend, it had about $8 of accumulated dividends bulging at the seems to get mailed out, and it instantly shot up to $33. But even buying it at $33 was a deal, since the coupon was over 8%, and you would get $8 in accrued dividends back that would drop your cost down to $25...just depends on the issue and the terms.

I might bail on HLM-, but likely will roll the dice and let it ride, since it's just 100 shares. Of course, one of these days, I'll get an itchy trigger finger and still hold it.....only to read that it was called a day or two after wanting to sell it.
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Old 05-25-2017, 09:38 PM   #1975
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Thanks, no I never got deep enough to find something like this. I did find a rating on the issue a few years back and it was Caa2. At $33 the yield is lowered and not much above other reach issues without the 33% call haircut. But I keep it on my list even though it never drops....Speaking of drops, most preferreds are very highly priced. About the only "value" are the ones that may be called... Like ALBMP. It started its decent towards par over a year ago as its par date is approaching. Utes are usually notoriously slow to call, so essentially I am risking a dime for a 4 month hold. If it continues on for any amount of time I will call it a successful trade. GLFPN may just be at edge where there is no benefit to call. However, some utes have rolled the preferred float into cheaper debt issues.
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Old 05-25-2017, 10:48 PM   #1976
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For more adventurous treasure hunting, you might want to try and find FIISO. An 8.4% cumulative preferred from Financial Institutions, an East Cost bank.

Mulligan & I have a couple hundred each, but know of no one else owning this.

Have tried several times to get the trading desk of my broker to search around, with zero success ( other than the first purchase ).

Just another of those elusive illiquids that are perfect for the sock drawer.
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Old 05-25-2017, 11:29 PM   #1977
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Texas, It is June 22... A lot of accrual for this dividend is built in to pay out... Surprised you have been hit with a lot of calls. I seem to side step them most of the time despite being knee deep in the past calls most of the time...
Pig, yes BOFI seems like its a sister of Bank of California with accusations here and there... BOFIL bounces up and down. I hit it on a down just a few cents above par. This is in my flip pile but will consider holding a while. The common acted fine and was up today. BOFIL started creeping back up after the early morning dump. I rarely will buy if common is dropping with the preferred. But today the preferred dropped and the common was going up. Of course being a debt issue they have to pay of become insolvent unlike a true bank non cum preferred. It will give me something to watch, lol...
Also bought 300 shares of ALMBP yesterday at $25.90. Wanted more today but it wouldnt come back to me. So I bought 100 shares of GLFPN today. Not thrilled to be under SO's umbrella but I checked pretty thorough yesterday how Gulf and Alabama Power are set up. No entanglements with Georgia Power or Mississippi Power financially which have been downgraded. Gulf and Ala. are stable and highly rated with needing no parent support, which their debt is lower rated than the 2 purchased subsidiaries.
Well, it seems like a lot of calls to me...

KCC, MNR-A, BGLEN, BGLEI (held for an hour or so), CVB... now AES-C.....

Since I only own about 6 securities that seems like a lot...
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Old 05-26-2017, 07:12 AM   #1978
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Well, it seems like a lot of calls to me...

KCC, MNR-A, BGLEN, BGLEI (held for an hour or so), CVB... now AES-C.....

Since I only own about 6 securities that seems like a lot...


Yep, that is a high percentage, since you do not own many at a certain time. If you want to keep your streak intact it is time to load up on WFC-J and MH-A, lol.
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Old 05-26-2017, 08:56 AM   #1979
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Prior to posting on the thread I was already underwater on some of the AFSI common. So, afIer asking about the AFSI preferreds on the thread I went ahead and bought some, just not as many as I would have. I ended up with 200 shares of AFSI/PRA at 21.56 avg cost, and 100 of GBLIL at 25.18 after commission. Earlier in the week I also bough some of the BOFI common prior to the exchange on the thread about the preferred. I bought the common because, I'm also a BetterInvesting club member and the Stock Study I did looked pretty good. I have had limit orders for AILLL as well that haven't hit. I will likely place a few GTC orders in for AILLL and let them ride. My intent is to increase preferred holdings to about 10% of the portfolio I'm managing with majority going to utility preferred stocks or CEFs. I sold out of UTG earlier in the year after a lucky short term nearly 20% gain. AFSI is rallying because of one of the original owners/founder families buying 300 million worth of shares in a private placement, addressing liquidity fears.
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Old 05-26-2017, 09:36 AM   #1980
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Jim, AFSI is having a nice pop today for you. The preferred is popping too. I just cant read detailed balance sheets so I have to get the aerial view and rely on other peoples opinions. I kind of got poisoned a year ago on them with the financial question marks. But clearly these types of trades that you got in have the better potential for nice cap gains in addition to income.
I am getting less skittish about investing in preferreds as time goes by. But I still would prefer buying preferreds from companies, that are highly profitable, guaranteed profits, and have zero debt... I havent found one yet. And if I ever did I suspect it would be a 3% perpetual preferred, lol.
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