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

[Sunset]

On the subject of waiting for an illiquid stock to emerge from its grave, I have had open bids out for what seems like months for stocks like AILNP, AILLI and IPWLK. Nothing. So I continue to sit & wait.

The odds of reasonable pricing are better with stocks like CNLPL, CNTHP, and AILLL. But the prices for those have risen to where it is kind of frothy, so I would not add at current asking prices. One just has to wait for a seller who needs to dump, then be quick to react.

Patience is likely the watchword for this kind of strategy.

Yep, prices too high for me right now, have had an order sitting waiting about a month for CNLPL to come down a bit.

 

[Coolius]

I feel confident you will get CNLPL if your bid is not too low; at times a seller just pops up out of nowhere, dumps a couple thousand shares, then vanishes back into the fog.

I see bids around the low $54 at this time; this may be the floor for now, but should it go below $54, I will be a buyer again.

I think CNTHP has a better probability of swinging below $54, present ask is $54.15 not far above that level. I am also a buyer below $54 for this one.

 

[Golden sunsets]

Yep, prices too high for me right now, have had an order sitting waiting about a month for CNLPL to come down a bit.

Same here. Open order on AILLL for close to 60 days.

 

[Mulligan]

Same here. Open order on AILLL for close to 60 days.

The trouble is these issues were basically not known up until recently and Coolius and I brought them up on another income forum for safe yield starved investors. Throw in a tiny float that wasnt meant to accommodate purchasers this is what happens. So it can be frustrating.


Sent from my iPad using Tapatalk

 

[aja8888]

The trouble is these issues were basically not known up until recently and Coolius and I brought them up on another income forum for safe yield starved investors. Throw in a tiny float that wasnt meant to accommodate purchasers this is what happens. So it can be frustrating.


Sent from my iPad using Tapatalk

Curious as to what the other income forum you guys frequent?

 

[Coolius]

Another nice price bump for old favorite WFC-L. Up another $7.99 this morning.

This is my largest holding dollar wise ( kind of amusing that it is the lowest qty holding in my portfolio ), but it's kind of high right now so will not add.

From a yield perspective, it is still a good yield in the high 5's low 6's percent, so it still compares well with other Financial Preferreds from investment grade banks.

( I should have bought more at $1,167 last year, but was too scared at the time to commit more funds. )

 

[alaska55]

Then he needs to "invest in gold" to take it with him..

http://cebudailynews.files.wordpress.com/2011/10/102911jhm48.jpg

Only in the Philippines LOL

 

[Slow But Steady]

I see that SSW-C, mentioned here a few months back, has been called. Mulligan and Coolius, are you still holding it?

 

[Mulligan]

I see that SSW-C, mentioned here a few months back, has been called. Mulligan and Coolius, are you still holding it?

No, we both dumped. They had to be called by January 2017, or face a 25% penalty in increased payments to preferreds. We both bought when they sagged under $24, then when they quickly recovered to over par we sold. We neither ever meant it to be a long term hold.. I dont classify any shipper as a safe keeper, though Seaspan is one of the safer ones. The debt these companies have is incredible. Plus the value of their entire preferreds was over HALF the amount of the float of the common stock. And this isnt even counting all of the massive debt encumbered which sits above the preferreds in priority. Too much a cyclical debt ridden industry for me to invest in.


Sent from my iPad using Tapatalk

 

[Coolius]

No, we both dumped. They had to be called by January 2017, or face a 25% penalty in increased payments to preferreds. We both bought when they sagged under $24, then when they quickly recovered to over par we sold. We neither ever meant it to be a long term hold..

Sent from my iPad using Tapatalk

Yep, what Mulligan said. A quick flip, a few $$ for lunch with the missus, and we move on....

Harder now to find good deals on Preferred/ETD issues. The poor jobs report, plus rest of the world in economic distress, plus uncertainties from Brexit, etc - make me feel that we'll be in a low interest rate environment much longer than Wall Street thinks.

That will - unfortunately - keep our favorites at elevated price levels and not-so-attractive yields.

I'm now forced to seek out opportunities in the mid 5% yields - thought it would not ever come to this; but as Bob Dylan sang - " the times, they're a-changing "

 

[Texas Proud]

Well, thought I was going to miss it.... but was lucky and got the trade...

BGLEI sold for $104.20 earlier today.... I had an order in for $104.80 but cancelled it to go after another...

THEN, my internet was SLOW... I mean glacial slow.... but, finally got in an order and it closed!!!

So, got a position in this... now I have my full amount invested.... final result is 7.32% yield with a weighted BB+ rating (note, I put in a B rating on the issues that were not rated...

Now, have to work on selling MNR-PA in the next 4 months and deciding what I want to replace it with...


Ut OH... just looked and saw that it is being called!!!

Not a good thing then....

 

[Slow But Steady]

There's a lot of the Baltimore Gas preferreds being traded today. Especially BGLEP, but they are all trading some. I wonder what's going on...

 

[Mulligan]

You are looking at wrong BGE issues...a massive sell in BGLEP and BGLEN... I went big...Buying almost 400 shares between the two..free dividend in 2 days... Im taking call risk at $102.64.... NO regrets...Im in big now with them...still selling if your frisky!!!!


Sent from my iPad using Tapatalk

 

[Mulligan]

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

There's a lot of the Baltimore Gas preferreds being traded today. Especially BGLEP, but they are all trading some. I wonder what's going on...

I went for it...No regrets... A year ago massive institutional selling occurred and I bought and flipped 300 shares twice in month with big $5 gains on each share...yep, it could get called and I accept that as realty...don't get many shots for 6.5 % absolute safe dividends... I am big...Gladly risk 75 cents for a perpetual beauty like this one....
BGLEP and BGLEN are the two... Remember call risk!

Sent from my iPad using Tapatalk

 

[Texas Proud]

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.

 

[Mulligan]

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?


Sent from my iPad using Tapatalk

 

[Texas Proud]

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


Sent from my iPad using Tapatalk

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...

 

[Mulligan]

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

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!


Sent from my iPad using Tapatalk

 

[Coolius]

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.

 

[Mulligan]

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.


Sent from my iPad using Tapatalk

 

[Texas Proud]

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.


Sent from my iPad using Tapatalk

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....

 

[Mulligan]

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.


Sent from my iPad using Tapatalk

 

[Coolius]

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.

 

[Mulligan]

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?


Sent from my iPad using Tapatalk

 

[Coolius]

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 ?