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

I've got to ride your order coattails when you buy, seems you always manage to get at the low for the day

I wish...I think 50.76 was low, I got at 50.78. Its not quite as hard as it seems...I noticed it selling over $51 today.. Then it locked up and a seller came out at 50.90 well below last trade...Bid was 50.75. I just went up 3 cents and sat....And then it hit an hour later or so...It wasnt selling so they came to me... Outside of the dumb buys and lucky lower trades, the trading range has been 50.75-85 mostly lately.
Didnt hit high today when I dumped DM for a few pennies profit (literally, it just bounced up and down way too much for my comfort in one days trading). I sold at $15.03 and high was $15.20 I think. I just wanted out...I couldnt handle a stock that goes up and down violently like it does. I dont know if there is a bottom door it may drop from.

 

[Golden sunsets]

I wish...I think 50.76 was low, I got at 50.78. Its not quite as hard as it seems...I noticed it selling over $51 today.. Then it locked up and a seller came out at 50.90 well below last trade...Bid was 50.75. I just went up 3 cents and sat....And then it hit an hour later or so...It wasnt selling so they came to me... Outside of the dumb buys and lucky lower trades, the trading range has been 50.75-85 mostly lately.
Didnt hit high today when I dumped DM for a few pennies profit (literally, it just bounced up and down way too much for my comfort in one days trading). I sold at $15.03 and high was $15.20 I think. I just wanted out...I couldnt handle a stock that goes up and down violently like it does. I dont know if there is a bottom door it may drop from.

Mul; Just curious. Are you doing all of this trading in a taxable account, with short term capital gains, or will you be paying regular income tax rates on all of these gains when you take funds as RMD's. I like these preferreds in my taxable where I pay lower taxes on QDI issues, so I'm not thrilled with the idea of gobs of short term gains at tax time each year.


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[Mulligan]

Mul; Just curious. Are you doing all of this trading in a taxable account, with short term capital gains, or will you be paying regular income tax rates on all of these gains when you take funds as RMD's. I like these preferreds in my taxable where I pay lower taxes on QDI issues, so I'm not thrilled with the idea of gobs of short term gains at tax time each year.


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I try and mostly...But not all the time. Im a bit more indifferent because Im already paying 15% QDI on income and cap gain will be same since I hold minimum days needed.

 

[bobandsherry]

With the drop last week, I took 200 share gamble with FTRPR. I bought and it still dipped, but now up about a buck. I figured 2 div's at $2.78 each would cover half the gamble before the shares become mandatory convertible on 6/29. Hoping for good earnings call at end of the month that gives this some pop. Feel free to slap me

I had hoped for good earnings call and FTR came through and FTRPR took a pop. Got in on FTRPR in late Jan for $12.88 and traded today at $15.65 so hopped out. The gain plus $2.78 div was a net of $5.51/sh, annualized return of 160%.

I looked at holding until conversion on 6/29. With FTR trading now at $10 that would result in conversion price of $13.33/sh and additional $2.78 div which would have netted $16.11/sh. But longer duration would have dropped my return to 109% and there is risk that FTR will trade lower dropping the conversion price. Felt OK with pocketing the cash now, with 300 shares that's $1,650 (gain and div).

 

[Mulligan]

I had hoped for good earnings call and FTR came through and FTRPR took a pop. Got in on FTRPR in late Jan for $12.88 and traded today at $15.65 so hopped out. The gain plus $2.78 div was a net of $5.51/sh, annualized return of 160%.

I looked at holding until conversion on 6/29. With FTR trading now at $10 that would result in conversion price of $13.33/sh and additional $2.78 div which would have netted $16.11/sh. But longer duration would have dropped my return to 109% and there is risk that FTR will trade lower dropping the conversion price. Felt OK with pocketing the cash now, with 300 shares that's $1,650 (gain and div).

The spoils go to the brave. Congrats Bob!

 

[bobandsherry]

The spoils go to the brave. Congrats Bob!

Nah, just didn't see FTR not meeting their target, figured they had already made proper assessment as they eliminated the dividend. Brave would have been if I would have popped for serious investment, kicking myself now for not getting in for several thousand shares.

 

[Freedom56]

I had hoped for good earnings call and FTR came through and FTRPR took a pop. Got in on FTRPR in late Jan for $12.88 and traded today at $15.65 so hopped out. The gain plus $2.78 div was a net of $5.51/sh, annualized return of 160%.

I looked at holding until conversion on 6/29. With FTR trading now at $10 that would result in conversion price of $13.33/sh and additional $2.78 div which would have netted $16.11/sh. But longer duration would have dropped my return to 109% and there is risk that FTR will trade lower dropping the conversion price. Felt OK with pocketing the cash now, with 300 shares that's $1,650 (gain and div).

Good move!

 

[bobandsherry]

Good move!

It closed up even further, leaving cash on the floor. But as they say, bears and bulls make money, pigs get slaughtered.

 

[Mulligan]

Nah, just didn't see FTR not meeting their target, figured they had already made proper assessment as they eliminated the dividend. Brave would have been if I would have popped for serious investment, kicking myself now for not getting in for several thousand shares.

No reason to kick yourself. That is just the natural after the fact human nature greed kicking in. I read what you did differently. You took a measured proportional risk purchase and it paid off for you. Restraint over the long haul usually is always the prudent thing to do. Pat yourself on the back, dont kick yourself in the rear!

 

[bobandsherry]

Yeah, thanks Mulligan. I'm OK with it, just that being brave would have been jumping in deeper. I guess that would have just been considered careless instead of brave.

 

[Mulligan]

Yeah, thanks Mulligan. I'm OK with it, just that being brave would have been jumping in deeper. I guess that would have just been considered careless instead of brave.

I actually get to stay at home today...Typically work 2 days a week and golf two (takes all day with travel) so this is my investing day! I have done more selling than buying lately so I got $50k I need to find a home for. Time to go to “work” today, lol.

 

[brokrken]

I actually get to stay at home today...Typically work 2 days a week and golf two (takes all day with travel) so this is my investing day! I have done more selling than buying lately so I got $50k I need to find a home for. Time to go to “work” today, lol.

Good luck and keep us in the loop!

 

[bobandsherry]

I actually get to stay at home today...Typically work 2 days a week and golf two (takes all day with travel) so this is my investing day! I have done more selling than buying lately so I got $50k I need to find a home for. Time to go to “work” today, lol.

That's not work, that's play time for you... I've got a pocket full of change, interested in what value you find.

 

[Mulligan]

That's not work, that's play time for you... I've got a pocket full of change, interested in what value you find.

Nothing happened today...

 

[bobandsherry]

Nothing happened today...

Better watch it, you'll get fired for sloughing off on the job

 

[Mulligan]

Better watch it, you'll get fired for sloughing off on the job

Almost just tried to buy ALLY-A again as it dropped or even more BGCA, but will try to get something else if I can.

 

[bobandsherry]

Almost just tried to buy ALLY-A again as it dropped or even more BGCA, but will try to get something else if I can.

Not sure what caused ALLY-A to drop today, but feel good since I had already unloaded it. My buy back price is closer to $26 so still a way to go.

 

[Mulligan]

Not sure what caused ALLY-A to drop today, but feel good since I had already unloaded it. My buy back price is closer to $26 so still a way to go.

I just think I am better off staying away. These types of issues have all about been called and this being Libor its shelf life may not be long either.

 

[Texas Proud]

I just think I am better off staying away. These types of issues have all about been called and this being Libor its shelf life may not be long either.

Yes.... going much over call on anything like this is a gamble... I would rather take that gamble on some other issue...

Here is one that I am trying to determine if I will gamble on it or just flip... CDR-B.... it has been trading below par but they have made a number of partial calls the last few years... it yields over 8% but is not rated... I have not checked out the cash flow, but since they are calling it seems they have been good enough to do the calls...

Ex divi date soon....

 

[Mulligan]

Yes.... going much over call on anything like this is a gamble... I would rather take that gamble on some other issue...

Here is one that I am trying to determine if I will gamble on it or just flip... CDR-B.... it has been trading below par but they have made a number of partial calls the last few years... it yields over 8% but is not rated... I have not checked out the cash flow, but since they are calling it seems they have been good enough to do the calls...

Ex divi date soon....

I have followed these a bit and it being similar to CBL and others it caught the downdraft during the partial calls. So there will be no more maket calls for a while with it. It should be around a while. It should be worth your time to at least investigate.

 

[bobandsherry]

Yes.... going much over call on anything like this is a gamble... I would rather take that gamble on some other issue...

Here is one that I am trying to determine if I will gamble on it or just flip... CDR-B.... it has been trading below par but they have made a number of partial calls the last few years... it yields over 8% but is not rated... I have not checked out the cash flow, but since they are calling it seems they have been good enough to do the calls...

Ex divi date soon....

Looks interesting, but concern with the price drop, 20% drop in price on YTD basis so question is why the drop and is the worst behind on this.

Buying below par now, I'd then invite them to do a full call But the partial call of 2 million shares had significant impact on their earnings and cash so I don't think they'll do more calls anytime soon.

 

[bobandsherry]

Yeah, thanks Mulligan. I'm OK with it, just that being brave would have been jumping in deeper. I guess that would have just been considered careless instead of brave.

Heh! Turned out to be OK after all. I forgot my wife's small IRA account. I don't spend much time on it but forgot I had actually spun her account in for 500 shares. So managed to still get the upside ride.

 

[brokrken]

According to Quantum, the IPO was 400,000 shares. If they just called 2 mln shares in December plus the shares called before and considering a market value of $188 mln they must have dipped into this pot many times since the IPO in 2012. I never really thought about it, but does this happen often? Why not just issue a different series of preferred?

 

[Texas Proud]

Well, crap.... I had a position in PIY for awhile... was living with it being below what I paid... it had been bouncing up and down for awhile and I decided to try and sell on an uptick and possibly buy when it dipped...

Sold yesterday at a small loss at 15.70.... but today jumps to 16.50... and looks to be going up more...

I have been listening to Mulligan on this and might stay out of it unless there is another drop down into the 13s...

 

[Texas Proud]

I have followed these a bit and it being similar to CBL and others it caught the downdraft during the partial calls. So there will be no more maket calls for a while with it. It should be around a while. It should be worth your time to at least investigate.

Yea, since there was a recent call I do not think there will be another for at least a year... might be flipping this for a few bucks.... however, I do have to replace my PIY I sold in my hold portfolio....