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

[Mulligan]

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

Mulligan, what is the story with CTWSO? Why is it trading so far under call price?

Jim, we complain about low preferred yields now, well they were even lower when this was issued in the 1950s. It went to market with a 4% yield. And it is so under par because there is almost a zero chance they ever call. Its like an emotional attachment as it and CTWSP were issued when the company originated.. They have had a bunch of preferreds over the years and called them all except the small original two. Its only a couple hundred thousand dollar market cap preferred. They could pay it off with the petty cash fund. Their bonds are A rated and they have had 48 years of consecutive dividend increases on the common. I just think they would feel calling it as equivalent to selling your mother into slavery.

 

[Mulligan]

Jim, I humored myself and checked their financials today that just came out....They earned $103,000,000 in profits for the first 6 months of the year...And paid out $19,000 total in preferred dividends... Dear Lord what kind of incredible coverage ratio is that? Its off the charts without a calculator handy...

 

[Winemaker]

Royal Bank of Scotland just called a bunch of issues 9/4/18. Great! Now I have to go and find another issue paying more than 5.50% with my old basis and $3.00+/share capital gains. Please show some pity.

 

[Mulligan]

Show some courage and buy MH-a off selloff... 25.27 and next juicy 51 cent divi declared... cant lose on this past call issue with a call... They had a bad earnings announcement... I bought 400 today again.

 

[jimnjana]

Mulligan, zero 90 day trading volume. I'd say that one (CTWSO) is not in a sock drawer but a crypt.

 

[Coolius]

Well, today is the first day in a long time that blood is appearing in the streets.

My screens totally blood red this morning. Many issues down big time - unusual for them as there is really no news other than the North Korea stuff.

Of particular interest, financial preferreds are down big today. And with no news from Yellen or the EU.

Looks increasingly like a time of irrational panic, and lots looking to get out.
The fear momentum has kicked in, for sure.

Tomorrow should be a day when bargains start to emerge.

 

[Mulligan]

You are so spoiled Coolius....Something drops 20 cents and you give serious thought to jumping out a high rise building...I just checked my stash on my spreadsheet...Im up a few bucks today... Thats why I bought TCF-B in such a huge slug...It really has nowhere to go unless all hell breaks loose...
Jim, you may be surprised to know CTWSO in the past has gone YEARS without trading...But never missed a divi since 1956... I peaked in on it a few weeks ago and left a $15.40 bid out...No action so I pulled after a week...They were wanting $18... Aint doing that...

 

[Running_Man]

Well, today is the first day in a long time that blood is appearing in the streets.

My screens totally blood red this morning. Many issues down big time - unusual for them as there is really no news other than the North Korea stuff.

Of particular interest, financial preferreds are down big today. And with no news from Yellen or the EU.

Looks increasingly like a time of irrational panic, and lots looking to get out.
The fear momentum has kicked in, for sure.

Tomorrow should be a day when bargains start to emerge.

I am not seeing anything that resembles a "panic" only some very moderate selling. What am I missing? Bad day for retailers but financial preferreds appear down less than 1/2 point in most cases?

 

[Coolius]

I am not seeing anything that resembles a "panic" only some very moderate selling. What am I missing? Bad day for retailers but financial preferreds appear down less than 1/2 point in most cases?

Well, perhaps I should accept Mulligan's label of being spoiled.

Just seems to be steady selling pressure, based on Time&Sales plus level II, in several issues I hold - HBANO, AHT-G, NEE-H, etc.

Oh well. Time to turn off the computer and clean up the dog poop on my front lawn ( I do not own a dog ).

 

[Mulligan]

Well, perhaps I should accept Mulligan's label of being spoiled.

Just seems to be steady selling pressure, based on Time&Sales plus level II, in several issues I hold - HBANO, AHT-G, NEE-H, etc.

Oh well. Time to turn off the computer and clean up the dog poop on my front lawn ( I do not own a dog ).

Coolius, were you an only child growing up? You have been spoiled, lol.....

 

[Mulligan]

I may finally learn what a true loss is... Finally added a true real second common stock to my collection... I have owned stodgy PEGRY for a while and just added ATGFF. Got tired of watching it drop and drop and finally bought 500 shares just a bit ago.
Has 7% plus divi and management just reiterated 8-10% annual divi increases through 2021... Will hold this long term, so I will find out down the road if I got "Kindered" or not.

 

[aja8888]

Well, perhaps I should accept Mulligan's label of being spoiled.

Just seems to be steady selling pressure, based on Time&Sales plus level II, in several issues I hold - HBANO, AHT-G, NEE-H, etc.

Oh well. Time to turn off the computer and clean up the dog poop on my front lawn ( I do not own a dog ).

Coolius: Steady selling pressure means an equal number of buyers.

Dog poop on your lawn is actually free fertilizer . Let it be and tend to more important tasks like taking a nap.

 

[Mulligan]

Coolius: Steady selling pressure means an equal number of buyers.

Dog poop on your lawn is actually free fertilizer . Let it be and tend to more important tasks like taking a nap.

Aja, what do you bet Coolius shut off the computer and slammed laptop shut....And on his way to clean the poop yelled at his wife..."We aint going out for dinner tonight. We got slammed in the stock market today and have lost $25 today. We are going to eat chicken noodle soup until we save that $25 back."
Just teasing you, Coolius...

 

[aja8888]

Aja, what do you bet Coolius shut off the computer and slammed laptop shut....And on his way to clean the poop yelled at his wife..."We aint going out for dinner tonight. We got slammed in the stock market today and have lost $25 today. We are going to eat chicken noodle soup until we save that $25 back."
Just teasing you, Coolius...

Chicken noodle soup...Nah PB&J sandwiches on stale bread. Canned soup is too expensive. (kidding, of course)

 

[Mulligan]

Chicken noodle soup...Nah PB&J sandwiches on stale bread. Canned soup is too expensive. (kidding, of course)

You reminded me Aja...Just this week I played in a fancy charity golf tournament that had candy bars and snacks on a table by tee box every other hole...My partner who is 85 years old and a 4 million plus stock portfolio proceeds to pull out a Walmart plastic bag out of his golf bag...And grabs handfuls of candy bars and slim jims at every stop. By the time we were finished his bag was stuffed full of candy. Like a years supply of candy... I couldnt believe it!

 

[aja8888]

You reminded me Aja...Just this week I played in a fancy charity golf tournament that had candy bars and snacks on a table by tee box every other hole...My partner who is 85 years old and a 4 million plus stock portfolio proceeds to pull out a Walmart plastic bag out of his golf bag...And grabs handfuls of candy bars and slim jims at every stop. By the time we were finished his bag was stuffed full of candy. Like a years supply of candy... I couldnt believe it!

At 85, maybe he thought it was Halloween and he was out trick or treating?

(actually, i would probably lift a few Slim Jims for the home pantry also - I like his style!)

 

[Mulligan]

He said...You guys dont know how much I have donated to this organization....Im getting some of it back today... I grabbed 6 candy bars and that was it... I felt like I was stealing, lol...

 

[aja8888]

........I felt like I was stealing, lol...

You will get over it in a few more years.....

 

[Mulligan]

You will get over it in a few more years.....

You got any frequent flyer miles to burn, Aja? Need you to fly out west and check up on our friend Coolius and make sure he hasnt harmed himself.....
Waiting to see how TCF-B opens up tomorrow exD... I have no self discipline and bought a few hundred more MH-A today at $25.20... Its like taking candy from a baby on this trade if there are not anymore skeletons from AFSI.

 

[Mulligan]

Sold my LANDP last week and bought it all back about 25 cents cheaper and still in line for divi this week. Officially outta cash...flat broke... Will set a few low ball bids on a few and just wait. If they ever hit will sell off some TCF-B to pay for it. If nothing happens the MH-A and TCF-B will ride until call. All my other issues I am content holding for a while.

 

[aja8888]

Sold my LANDP last week and bought it all back about 25 cents cheaper and still in line for divi this week. Officially outta cash...flat broke... Will set a few low ball bids on a few and just wait. If they ever hit will sell off some TCF-B to pay for it. If nothing happens the MH-A and TCF-B will ride until call. All my other issues I am content holding for a while.

Make use of the free time buy figuring out your football bets.

(here's some advice - don't bet the Astro's to win it all. Pitching has gone to hell.)

 

[Running_Man]

Farmland Partners Inc. is issuing a new preferred share with an interesting twist where redemption of the preferred can be more than $25 if Farmland prices increase in the states where they do business. It is set to price at an initial 6% dividend yield. Interesting preferred REIT stock with a different type of asset class

https://www.sec.gov/Archives/edgar/data/1591670/000104746917005042/a2232924z424b5.htm

Farmland Partners Inc. Announces Pricing of Public Offering of 6.00% Series B Participating

 

[Mulligan]

Make use of the free time buy figuring out your football bets.



(here's some advice - don't bet the Astro's to win it all. Pitching has gone to hell.)

Im locked and loaded already this year, Aja...Dolphins 7.5 over, Cardinals 8 over, Bengals 7.5 over, and Rams 6 under. If you hit the number exactly its a push and you get your money back. If it was all about the money I would have just loaded up on Rams under. They would have to go 7-9 for me to lose. Their offense is just horrible.

 

[Mulligan]

Farmland Partners Inc. is issuing a new preferred share with an interesting twist where redemption of the preferred can be more than $25 if Farmland prices increase in the states where they do business. It is set to price at an initial 6% dividend yield. Interesting preferred REIT stock with a different type of asset class

https://www.sec.gov/Archives/edgar/data/1591670/000104746917005042/a2232924z424b5.htm

Farmland Partners Inc. Announces Pricing of Public Offering of 6.00% Series B Participating

I looked RM, but couldnt get interested. I prefer the LANDP because it is term dated albeit with a less YTM. Had some good flips on this issue, but would like to keep it in the stable. I also like LANDs assets better. Gladstone alluded earlier in year they may come out with another preferred. Due to Gladstones propensity for term preferreds, if they do issue another one and its term, I will jump out of the gate with it, if its plus 6%.

 

[Mulligan]

Anybody who jumped in on TCF-B a few weeks ago is seeing exactly how a past call "should be called but hasnt" reacts. It just creeps upward. Easiest simplest short term trade of the year in terms of safety and price support. Probably will level off a bit soon until the next divi gets declared as market is very suspicious of a call. MH-A is in same spot now. The only difference is MH has some "skeleton in the closest fears" unlike TCF.