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

[bobandsherry]

Yes, I am still largely sitting at highs for the year...Had some good bounces on buying SBNCM at $11 and it sits at $15. Sold some at that price..Loaded up on KTH recently in lower $29s and its near $30 now. Utility NiSource is coming to market with a 6.5% QDI that has 5 yr resets tied to 5yr Tbill plus kicker. Im gonna kick the tires there I think.

Heh.... if I had your portfolio of preferred's I'd just donate mine to charity The NiSource issue sounds interesting, what's timing of that hitting the market? I'm out of here for a week, hopefully the market gives me a positive surprise when I get back

 

[Mulligan]

Its out today premarket trading Bob. under temp ticker NISOP. Im in for 400 at 24.88

 

[Texas Proud]

Yes, I am still largely sitting at highs for the year...Had some good bounces on buying SBNCM at $11 and it sits at $15. Sold some at that price..Loaded up on KTH recently in lower $29s and its near $30 now. Utility NiSource is coming to market with a 6.5% QDI that has 5 yr resets tied to 5yr Tbill plus kicker. Im gonna kick the tires there I think.

Missed this post... what is the kicker rate?

 

[capjak]

Its out today premarket trading Bob. under temp ticker NISOP. Im in for 400 at 24.88

Qualified or Non?

 

[Mulligan]

Qualified or Non?

Guys, its a QDI 6.5% perpetual. After 5 years it goes to 5 year T-Bill plus 3.63 kicker. It can fit a segment with one wanting an adjustable to the stable. QDI preferreds are almost non existent anymore as they generally prefer issuing debt anymore.

 

[Mulligan]

Guys, its a QDI 6.5% perpetual. After 5 years it goes to 5 year T-Bill plus 3.63 kicker. It can fit a segment with one wanting an adjustable to the stable. QDI preferreds are almost non existent anymore as they generally prefer issuing debt anymore.

Snagged another interesting preferred from Enbridge. It currently a live floater off TBill plus 3.15%. Got 300 at $19.50 ($25 par) for a current 6.36% QDI yield. I got EBBNF through grey market...ENB.PF.U through Canadian exchange.

 

[brokrken]

Snagged another interesting preferred from Enbridge. It currently a live floater off TBill plus 3.15%. Got 300 at $19.50 ($25 par) for a current 6.36% QDI yield. I got EBBNF through grey market...ENB.PF.U through Canadian exchange.

You've been scouring the comments over at Tim's site again, I see.

 

[Mulligan]

Yes, another person provided that as a possible example to NISOP being they both will adjust off 5yr TBill. I have unsuccessfully tried to get a Emera live adjustable through grey market (they own a bunch of US Utes) and in fact Vanguard wont trade it. But they did with the Emera issue. It trades off Canadian exchange (which I have no access to) but a few leak into OTC grey market. Anyhow after thinking it over, I said why not. Grey markets are hit and miss anyhow. It only has traded about a dozen days the past 6 months. To be honest I put in a 300 share bid at $21 and it sold it to me at $19.50 which was a $1.37 below last trade earlier this month. Kind of pleased with the purchase.

 

[aja8888]

Guys, its a QDI 6.5% perpetual. After 5 years it goes to 5 year T-Bill plus 3.63 kicker. It can fit a segment with one wanting an adjustable to the stable. QDI preferreds are almost non existent anymore as they generally prefer issuing debt anymore.

Where do you find information on this offering. NASDAQ quote doesn't show any data. I find an article dated 6/11/18 only? Thanks!

 

[Mulligan]

Where do you find information on this offering. NASDAQ quote doesn't show any data. I find an article dated 6/11/18 only? Thanks!

Aja, FINRA has it but that is too much work..Here is the pricing sheet for the issue.
https://www.sec.gov/Archives/edgar/data/1111711/000119312518336743/d620499dfwp.htm

Just get on this website and check it daily. Tim McPartland is a class guy and runs this site. He stays up on top of all new issues before they start trading and lets us know. Coolius hangs out there too under another alias, so the water is warm...Come on in!
https://innovativeincomeinvestor.com/nisource-prices-new-fixed-rate-reset-preferred-shares/

 

[Mulligan]

I am puzzled, CBB preferred seems to really be dropping. Any special reason.
Anyone else silly enough to have them still ?

Sunset, forgot to tell you...CBB 2024 7% senior secured bond trades at $88. So factoring in the appreciation to par, this senior bond yields better than CBB-B, and it is weak capital. I wont touch anything, but when the senior secured pays you better than the preferred, that is not good.

 

[aja8888]

Aja, FINRA has it but that is too much work..Here is the pricing sheet for the issue.
https://www.sec.gov/Archives/edgar/data/1111711/000119312518336743/d620499dfwp.htm

Just get on this website and check it daily. Tim McPartland is a class guy and runs this site. He stays up on top of all new issues before they start trading and lets us know. Coolius hangs out there too under another alias, so the water is warm...Come on in!
https://innovativeincomeinvestor.com/nisource-prices-new-fixed-rate-reset-preferred-shares/

Thanks, I'll read up and if I like the risk, I'll add a few hundred shares to my preferred portfolio.

 

[Texas Proud]

Guys, its a QDI 6.5% perpetual. After 5 years it goes to 5 year T-Bill plus 3.63 kicker. It can fit a segment with one wanting an adjustable to the stable. QDI preferreds are almost non existent anymore as they generally prefer issuing debt anymore.

Interesting... it is exactly 6.5% when you add today's rate with the kicker....

 

[Mulligan]

Thanks, I'll read up and if I like the risk, I'll add a few hundred shares to my preferred portfolio.

Aja, get your research done? Just a little side color. This is the first 6% plus (this one is 6.5%) QDI utility preferred that has come to market since SCEDL went to market in 2006 with a 6% issue. It was redeemed in early 2013. Only maybe 4 or 5 have even been issued this decade. The last being Alabama Power 5% in 2017. One just doesnt get a bit of this type of apple often if they so desire. Look at credibility market gives 6% ute preferreds...PCG-A is a perpetual 6% par that suspended its dividend over a year ago, is teetering on edge of bankruptcy and the darn thing is still trading around $22...Where do you think a reit or non ute preferred with a 6% par with dividend suspension and brink of bankruptcy would be trading at? $5-$10 maybe?

 

[bobandsherry]

RLGT-A is now called. Good while it lasted.

 

[brokrken]

RLGT-A is now called. Good while it lasted.

Now, what to replace it with...

 

[Mulligan]

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

I held UBP-H for 3 days, lol...Bought 400 at 22.07 and sold them at 22.97 today... I recently bought 400 KTN at 29.40...and a few hundred PLDGP at 60.60. Bought GJP last week at 21.85, sold at 21.95 because I owed brokerage money at end of day last week. Bought them back at 21.69 today when my CD matured. Bought 200 more NISOP last week at 24.72. Have 600 of NISOP. Also reentered CHSCN last week at $25.07. Flipped it at almost $26 for a quick 50 cent profit a couple weeks ago, and bought back a lot cheaper. Also bought more EBBNF at 17.93 last week too. Got a little more CD money to blow tomm...
I now hold...PLDGP, KTN, KTH, CNIGO, CNIGP, AILLL, NISOP, GJP, CHSCN, ALLY.-A, NSS, UEPCO, MSEXP, EBBNF, CNTHP, SBNCM, PFX, And FIISO.

 

[bobandsherry]

I held UBP-H for 3 days, lol...Bought 400 at 22.07 and sold them at 22.97 today... I recently bought 400 KTN at 29.40...and a few hundred PLDGP at 60.60. Bought GJP last week at 21.85, sold at 21.95 because I owed brokerage money at end of day last week. Bought them back at 21.69 today when my CD matured. Bought 200 more NISOP last week at 24.72. Have 600 of NISOP. Also reentered CHSCN last week at $25.07. Flipped it at almost $26 for a quick 50 cent profit a couple weeks ago, and bought back a lot cheaper. Also bought more EBBNF at 17.93 last week too. Got a little more CD money to blow tomm...
I now hold...PLDGP, KTN, KTH, CNIGO, CNIGP, AILLL, NISOP, GJP, CHSCN, ALLY.-A, NSS, UEPCO, MSEXP, EBBNF, CNTHP, SBNCM, PFX, And FIISO.

Looks like you've been busy. I'm just back from vacation and see the market gave me a surprise, but it wasn't pleasant. And then cap that with RLGT-A getting called. Glad the trip was fun because seeing the mess from past week isn't

 

[Mulligan]

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

Well you knew the party would end soon with RGLT. I got out a long while ago because CEO said a year ago they would redeem it with their revolver line of credit.
Beside, Im sure it didnt ruin a good vacation did it? Those are more important anyways!!!

 

[bobandsherry]

Well you knew the party would end soon with RGLT. I got out a long while ago because CEO said a year ago they would redeem it with their revolver line of credit.
Beside, Im sure it didnt ruin a good vacation did it? Those are more important anyways!!!

Yep, bought it with expectation it would be called. 8% return so not complaining.

 

[Running_Man]

I noticed CHS preferred prices have fallen significantly and looked into the company, now first thing I noticed as I was trying to discern the reason for the drop I saw the CFO name was SKIDMORE, sometimes you cannot find greater comedy than in financial reports.

Now CHS recently gave a speech and Skidmore stated he is running CHS by the tenets in the book Good to Great, a pablum of crap that many executives keep on their desk to appear to be working on matters of urgency.

Of the stocks listed as great in the book several went bankrupt a couple Wells Fargo and Fannie Mae were busy committing fraud and the whole lot from the books publishing to recent times vastly underproduced the S&P 500. Now what makes this interesting is that an employee apparently FOR YEARS overstated CHS earnings by missreporting accrued freight charges on a mark to market. Now CHS, with the help of a book, thinks they are on their way to great. So despite a very nice yield on a couple of their issues and being near par now, the lack of financial controls and the leadership displayed has lead me to beg off for a while more from these preferreds.

 

[Mulligan]

Yes, they have had some lax oversight, and some questionable decisions and have let a few heads roll recently to try to get things going right again. I have been fortunate making money on every flip of them through the years. A month or so ago I bought CHSCN at 25.47 and flipped out just because at just under $26. Then it tanked again and I went in at 25.07 with CHSCN again last week. So the jury will be out on this trade a while. But its a gamble I am willing to assume. Hopefully with that 30 plus billion in sales they can generate enough profits to pay the preferreds as long as I own them, lol.

 

[brokrken]

Added to m SSW-G position today. Huge drop in the last couple days and I can't find any reason why. If I get a bump tomorrow, I'll probably trade back out of the additional shares I just bought.

 

[capjak]

CHCSM seems to be struggling lately keeps going south. I own 2999 shares so yea need some help. Nice dividend anyway

 

[Mulligan]

CHCSM seems to be struggling lately keeps going south. I own 2999 shares so yea need some help. Nice dividend anyway

I only own 400 of CHSCN but it still kicked me good today...Along with NSS and a smaller degree SRC-A today...Those 3 were turds today...But some of mine were up today..Heck I sold KTN at over 29.75 and bought almost all of them back less than an hour later at 29.29. I held PLDGP for a couple weeks...And today flipped them for a dollar higher and captured the divi today as it was exD today. So all wasnt lost today, lol...