Coolius
Full time employment: Posting here.
- Joined
- May 15, 2010
- Messages
- 862
Don't you mean Cooliusaide?
Yep, yep. Pardon the dyslexia......
It's Mulligan's home brewed stuff, anyway, a leftover from Halloween.
Don't you mean Cooliusaide?
As one who also drinks the koolaid besides my "old grape juice", preferreds make up 75% of my fixed income side of my portfolio. Because of the buy and hold strategy with preferreds, they are not usually hyped by brokers or brokerage houses, and therefore don't generate commission income. Also, preferreds are a hybrid debt/equity security, and in the event of a bankruptcy, they are behind the bond holders in status of repayment. That usually cause them to be rated "junk" or "just above junk", even though their bond debt may be rated AA or above. This also is a deterrent to brokers and "financial planners" in case things go awry, no one wants sued for fiduciary neglect. investing in junk. Recently,Fidelity has stopped all research for preferreds.
Do your own due diligence, and back up the truck.
I mentioned in the past, I use the website dividendyieldhunter.com/preferred-stocks-trading under-par
I've read through this thread with great interest.
My first foray into preferreds was in the depths of the financial crisis, when bought Weingarten Realty F-preferreds at about a third of the issue price. With credit drying up, folks thought that many of these capital-intensive REITs might go belly up, so I had to grit my teeth while placing the order.
They had a coupon over 5%, never missed a payment, and were called this year at par value. I also bought WRI common at about 8, and it's now about 35. (I only brag about my winners.)
I recently bought the D-preferred of AHT, a hotel REIT in which I also own common shares.
After reading this thread, I jumped into CNTHP. A limit order at $52.25 was partially filled at $52.20, but only for about a third the number of shares I was hoping to buy. The next ask price was $53.50. Maybe that was one of you folks.
I've read through this thread with great interest.
My first foray into preferreds was in the depths of the financial crisis, when bought Weingarten Realty F-preferreds at about a third of the issue price. With credit drying up, folks thought that many of these capital-intensive REITs might go belly up, so I had to grit my teeth while placing the order.
They had a coupon over 5%, never missed a payment, and were called this year at par value. I also bought WRI common at about 8, and it's now about 35. (I only brag about my winners.)
I recently bought the D-preferred of AHT, a hotel REIT in which I also own common shares.
After reading this thread, I jumped into CNTHP. A limit order at $52.25 was partially filled at $52.20, but only for about a third the number of shares I was hoping to buy. The next ask price was $53.50. Maybe that was one of you folks.
OTC Pink sheets issues makes me kind of nervous.
So very amused to read your post......
I had a bid for CNTHP in at $52.10, and was in the process of changing it to $52.20 to grab the offer, when your order took them.
Sorry about that. If it's any consolation, it was only 170 shares.
I'm not used to issues that are so thinly traded.
Well, only 300 shares traded yesterday, Slow got 170 and I got the other 130 at 52.20. We may be getting to a point where 5 or 6 of us are competing with each other for shares.
Seems someone out there has been doling out CNTHP over the past week or so sellnig a few hundred at 52.20........many of recent trades have all been at same price. It's on the high end of what I'm willing to pay for this issue so may start bidding for other issues.
Well, only 300 shares traded yesterday, Slow got 170 and I got the other 130 at 52.20. We may be getting to a point where 5 or 6 of us are competing with each other for shares.
Seems someone out there has been doling out CNTHP over the past week or so selling a few hundred per day at 52.20........many of recent trades have all been at same price. It's on the high end of what I'm willing to pay for this issue so may start bidding for other issues.
I submitted a standing order for CNTHP for 200 @ 52.00 that was filled yesterday. But now I see that the last sales were at 51.65 Oh well. Now I just need to sweat it out until the next X dividend date right, to make sure that it isn't called at 51.44? Must be sometime in January - right? Yield 6.30%
I submitted a standing order for CNTHP for 200 @ 52.00 that was filled yesterday. But now I see that the last sales were at 51.65 Oh well. Now I just need to sweat it out until the next X dividend date right, to make sure that it isn't called at 51.44? Must be sometime in January - right? Yield 6.30%
CNTHP should be declaring its dividend sometime mid to late December.
Go to the link below, you'll see a sister issue, CNLPL, has its January dividend declared already - which provides a further degree of assurance that CNTHP will follow suit. Click on the Sept 24 CL&P dividend declared item.
https://www.eversource.com/Content/nh/about/investors/financial-news/financial-press-releases
Congrats on getting the shares. Your price is better than mine - my cost basis is $52.26. I'm confident we'll see the Dec dividend declaration and then its a gravy train ride until redemption - hopefully a very long ride.
Update: Noticed that Mulligan has already beaten me to the response. i tell you, that man is DA MAN for such issues !!
Thanks Mulligan and Coolius
Bought anything else lately Golden? Here is an example today of why you shouldnt worry about CNTHP price. CNLPL had a quick drop today. I tried to get it 13 cents above current bid, then the ask person jumped me immediately and paid ask price of $52.50. Only one person got the $52.25 trade. And I got neither since I tried to shave off a few cents. Oh well, got tons of CNLPL anyways.
I did buy my smallest yielder ever this week. AILLI which is an older sister of AILLL. Has a 5.4% yield, but was bought $7 under call price and $5 under par price. Just goes to show you how low rates can go as in this "low rate" environment it (AILLI) was issued when rates of long issues were even lower.
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When the Fed increases interest rates in December, it will probably cause a quick drop in preferred prices. Time to load up then.
When the Fed increases interest rates in December, it will probably cause a quick drop in preferred prices. Time to load up then.
Bought anything else lately Golden? Here is an example today of why you shouldnt worry about CNTHP price. CNLPL had a quick drop today. I tried to get it 13 cents above current bid, then the ask person jumped me immediately and paid ask price of $52.50. Only one person got the $52.25 trade. And I got neither since I tried to shave off a few cents. Oh well, got tons of CNLPL anyways.
I did buy my smallest yielder ever this week. AILLI which is an older sister of AILLL. Has a 5.4% yield, but was bought $7 under call price and $5 under par price. Just goes to show you how low rates can go as in this "low rate" environment it (AILLI) was issued when rates of long issues were even lower.
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I scooped up 10 shares of this one a few weeks ago.For those who may be interested, today is exDiv for Wells Fargo preferred Series L, symbol WFC-PL.
At current bid of $1,164, yield is 6.44%. There is no call risk since this is a convertible with no danger of the common hitting convert price anytime soon ( if ever ). Qualified dividends.
The yield is very high for WFC, but this is because the issue was acquired when WFC bought over Wachovia. WFC preferreds usually yield 6% or lower.
Disclosure: this is my largest single holding.