Winemaker
Thinks s/he gets paid by the post
Kimco Preferred J called, at end of December; paid $22.39 for it in 2014. Farewell, my friend!
Winemaker, Get you some VER-F under 25.20. They are doing a slow gradual call here as they are buying them out instead of a reissue. Has taken 6 months for 30% call. Monthly payer and will anchor closely to par while u wait for a deal.
I placed an order to by VER-F (ver/prf) with Schwab for $25.20. Schwab message says this is callable 1/3/2020? Is that correct? It looks to me that there is significant volume.
Its in a transition stage of putting 20% of the preferreds. Those have been segregated from account (mine were) so these are free trading preferreds.
Vereit (NYSE:VER) plans to redeem 8M shares of its 6.70% series F cumulative redeemable preferred stock, representing approximately 20.58% of its ~38.9M shares of series F preferred stock, on Dec. 21, 2019.
I placed an order to by VER-F (ver/prf) with Schwab for $25.20. Schwab message says this is callable 1/3/2020? Is that correct? It looks to me that there is significant volume.
I placed an order at $25.19 this morning but the price never drifted down.
I could have bought at $25.22 but tried to pinch a few cents.
So am I crazy putting in an order?
No, I wish I should have said something a few days ago, there was a dump on the redemption notice. I got again at 25.18 and have the monthly divi in my pocket also though. They clearly want this big issue of their books, but they just want to use cash to get rid of it apparently so it will take time.
I seen some of the dirt bag preferreds took a beating past few days. Im not in those though. Another conservative purchase if your interest is EP-C which I bought again Monday just under $50. Its a 4.75% Baa3 IG trust debt that matures in 2028. KMI can redeem anytime (been callable since 2002) at $50. It goes exD in about 10 days so that make it in essence under par. It has an owner conversion but its way out of the money and useless. It is tendering each share for $25.18 cash and a bit under .72 share of KMI. So KMI would need to be near $40 to make it worth ones time to convert. So I just treat it as a safe income play and 8 yr maturity. When it goes illiquid price drifts up. I have flipped it twice for a couple buck a share gain twice this year.
Thanks, I'm reloading preferreds as with rates down, I'll go for the conservative ones. I have added to the 5 I have now but some additional cash came loose in the IRA I keep these in and I need to put it to work, especially since rates may not rise in a good while the way things look.
Thanks, I'm reloading preferreds as with rates down, I'll go for the conservative ones. I have added to the 5 I have now but some additional cash came loose in the IRA I keep these in and I need to put it to work, especially since rates may not rise in a good while the way things look.
You may keep an eye on SR-A as a nice conservative QDI perpetual as its price hit $26.30 today late in day. I beat this thing like a drum at IPO and flips from $26 and selling in $27s multiple times and then got out as price went to nosebleed $28 range.
But I have been buying back past couple weeks from 26.30-42 lately to reestablish it as my biggest position. You may try to get a lower entry point but it wont hurt to put it on your watch list to monitor.
I have probably made more than $4 a share in flipping and dividends on this issue since issued earlier in year. But now I am just in hunker down mode keeping it as a base hold position and will take the future price movements like a wife....For better or worse, as I know I will get paid. But I do have bias here being its my local utility and its headquarters are based here also.
Price points if you are interested in EP-C can be tricky. Hopefully there is a bit of liquidity left for another day if you are interested. I think it did finally trade in $50- $50.05 range today.
You may keep an eye on SR-A as a nice conservative QDI perpetual as its price hit $26.30 today late in day. I beat this thing like a drum at IPO and flips from $26 and selling in $27s multiple times and then got out as price went to nosebleed $28 range.
But I have been buying back past couple weeks from 26.30-42 lately to reestablish it as my biggest position. You may try to get a lower entry point but it wont hurt to put it on your watch list to monitor.
I have probably made more than $4 a share in flipping and dividends on this issue since issued earlier in year. But now I am just in hunker down mode keeping it as a base hold position and will take the future price movements like a wife....For better or worse, as I know I will get paid. But I do have bias here being its my local utility and its headquarters are based here also.
aj,
I am also a holder of SR-A, having bought some time ago, cost basis just below $26.
It's a good holding for reliable and sustainable income. However, if it does go up again to the $28 area, I'm gone, lol.
Aj, the short answer is yes. If I can get up to a year's worth of dividends for the cap gain up front, I am prepared to risk the loss of shares indefinitely.
It is unlikely that any such rise could be sustained, because time marches on and the first call date continues to draw nearer. That pressure will cause the stock price to be limited in upside.
Any large spike up would be grounds for me to consider selling, with the intention to buy back at a lower price before the next XD date.
Of course, this strategy does not always work, but I have used it successfully on many occasions, as I believe Mulligan and Camroc have.
Others would prefer to hold ( whether for long term cap gain rate, or they feel the rise is sustainable ), which is perfectly fine, since that's what makes the market.
What I figured. Thanks.
Aj, the short answer is yes. If I can get up to a year's worth of dividends for the cap gain up front, I am prepared to risk the loss of shares indefinitely.....
Interesting perspective. While my intent is to buy and hold I do have one 5% coupon issue that I bought at a 20% discount from stated value and is now 14% above my cost so if I sold I would get over 2 years worth of income (no tax implications because in tIRA).
Only problem is then I would need to reinvest it.
I did sell SCEPRL at a nice 14% gain from my cost and now have money in my pocket. Thoughts on reinvestment?
Looking at OBCSP which I see some of you have held in the past. Still have it? Happy with it? It looks like it is trading at ~50c premium to par but still yielding 7.42%. Call risk?
Price points if you are interested in EP-C can be tricky. Hopefully there is a bit of liquidity left for another day if you are interested. I think it did finally trade in $50- $50.05 range today. Friday and Monday about 30,000 shares trade and today it drifted to about a 1000. Most days only a few hundred shares trade with big wide bid ask spreads. Hopefully there are some still available if you decide it fits your needs.