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

[capjak]

Cap its redemption price is $27.10 not $25, which is good. But its YTM is more in mid 5% range.

Correct, holding for 10 years 5.5% may not be bad, but I have been selling it as I am more interested in qualified div.

I have been very Patriotic the last few years.....

 

[Mulligan]

Correct, holding for 10 years 5.5% may not be bad, but I have been selling it as I am more interested in qualified div.



I have been very Patriotic the last few years.....

I have been in QDI search lately myself due to my tax bracket...And the fact I have a big chunk of tax free tied up in NSS and BANFP. Plus I got a bond and CD money chewing up space there (CD yield was too low, dumb to eat up tax free space with it, but it matures next month anyways). And to make matters worse I have had a few illiquids hit with no cash in the account so I a few times have had to sell AILLL to myself a few times in a couple tax free accounts to raise funds. So now I got a nice partial chunk of my QDI AILLL, wedged into my tax free also.

 

[Golden sunsets]

How do you sell to yourself Mul? What are the mechanics?


Sent from my iPad using Early Retirement Forum

 

[Mulligan]

How do you sell to yourself Mul? What are the mechanics?


Sent from my iPad using Early Retirement Forum

First, Golden, you cant sell to your same brokerage account or they will get pissed and call you. I found that out, lol.
Since I keep little money available and Vanguard allows me to put bids in without upfront cash and lets me “borrow” their money until market close, I have to make a decision. Bring in more cash or sell something. After I free up the cash in another account, I just simply had the buy order and sell order teed up from both brokerages and set sell price just above current bid. I hit sell and them immediately hit buy for same amount and price a split second after. I have to do this only when I want to keep those shares and am wanting to sell something else to cover my funds for purchase.

 

[capjak]

First, Golden, you cant sell to your same brokerage account or they will get pissed and call you. I found that out, lol.
Since I keep little money available and Vanguard allows me to put bids in without upfront cash and lets me “borrow” their money until market close, I have to make a decision. Bring in more cash or sell something. After I free up the cash in another account, I just simply had the buy order and sell order teed up from both brokerages and set sell price just above current bid. I hit sell and them immediately hit buy for same amount and price a split second after. I have to do this only when I want to keep those shares and am wanting to sell something else to cover my funds for purchase.

How much are transaction fees....guessing you lose cost of a Big Mac every time

 

[Mulligan]

How much are transaction fees....guessing you lose cost of a Big Mac every time

Depends on brokerage I use out of the three. But it is 3 transactions so maybe $20. But the value of the purchase makes up for that. Some of the illiquids I own, are just too hard to buy again, so I keep them and shuffling them around isnt too expensive. For me its cheaper that way, then holding a bunch of cash out that may or may not ever be used. As many of my potential purchases never materialize.

 

[brokrken]

Looks like the air is out of the IPL-D tire already..Im shocked!

Yep, that was fast

 

[Texas Proud]

Well, finally capitulated on PFH..... sold it at a big loss...


I was thinking it was going to recover as it has done off and on, but it never did... Sears BK did not help and all the talk of Penny going next kept it going down...


Not good for me, but I still think I will have a small gain on my pref shares for the year (the buy and hold)...


My flipping is being hurt big time by PIY... I have made good money on this before, but it has taken a big hit just after this last divi... and has not recovered any... looking to take my lumps... this means 4 losses in the last 3 months (compared to 4 the previous 2 years)... so the YTD annualized yield is now down to 14%.... still not bad but way less than the 30 to 40+ I was at...

 

[Mulligan]

Such as the life of a High yield investor, Texas! Did you give any thought to hanging on through the holidays to see if they could pull better numbers before you sold?
Im bouncing around all time highs. Which just really means steady as she goes with nothing exciting happening. Just guessing but probably up around 8% or so. Just keep monkeying around on the edges. Got back in bigly on LANDP at 25.34 and 25.36 yesterday. Got lucky on a teeny tiny quick profit trade. Tried to snag 400 shares of PCG-A at 25.15 earlier this week and only got a bit under 200. So I dumped them after the funds cleared at 25.55. Glad I it didnt work out as fire fear hit again after I sold and they now are at 24.70...

 

[Texas Proud]

Such as the life of a High yield investor, Texas! Did you give any thought to hanging on through the holidays to see if they could pull better numbers before you sold?
Im bouncing around all time highs. Which just really means steady as she goes with nothing exciting happening. Just guessing but probably up around 8% or so. Just keep monkeying around on the edges. Got back in bigly on LANDP at 25.34 and 25.36 yesterday. Got lucky on a teeny tiny quick profit trade. Tried to snag 400 shares of PCG-A at 25.15 earlier this week and only got a bit under 200. So I dumped them after the funds cleared at 25.55. Glad I it didnt work out as fire fear hit again after I sold and they now are at 24.70...

Yes I did... but it has dropped about $1 per share just in the last month...


Also some bad news that just does not go away.... rather get my $8 something than nothing...

 

[Mulligan]

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

Yes I did... but it has dropped about $1 per share just in the last month...


Also some bad news that just does not go away.... rather get my $8 something than nothing...

I understand.....There have been an Ahole or 2 SA writers touting that thing from $16 down...And yet they always say they are making money on it through their hedging or whatever...Such BS! If they have a forum to tout they just will never be a man and admit to losses....They are investing geniuses! That is why hawk their services for pay...If they were so great why would they need to hawk their services to make money? They could just make plenty with their own!

 

[Mulligan]

Loaded up on KTH recently at $29.22 range. Bought 1300 shares of ALLY-A at 25.67 and 65 yesterday...They already determined next divi, so its a safe trade/play at this price point.

 

[Mulligan]

Scoring nicely on 400 shares of SCE-G bought 18.45 at market open today...That was a calculated dumpster dive off premarket common stock movement. Bought 218 shares at below 52 week low of SOCGM at 27.48 a couple days ago. A tiny old float that doesnt trade much.

 

[Texas Proud]

Scoring nicely on 400 shares of SCE-G bought 18.45 at market open today...That was a calculated dumpster dive off premarket common stock movement. Bought 218 shares at below 52 week low of SOCGM at 27.48 a couple days ago. A tiny old float that doesnt trade much.

Holy cr#p.... it went up $1.63 today!!!




AHHH, a 10 day shows it dropped like a rock the last few days... now looks like it is going back up..

 

[Mulligan]

Holy cr#p.... it went up $1.63 today!!!




AHHH, a 10 day shows it dropped like a rock the last few days... now looks like it is going back up..

This was kind of a lay up...CA regulator came out last night saying they dont want PCG and EIX bankrupt... Common stocks of both were up in premarket 10% plus. Preferreds hadnt traded yet. So I picked an entry point 75 cents above yesterdays close and had bid in que before market opened. Many times on preferreds people leave standing bids hoping to catch a spike. Well it worked against them this time. My order filled right at market open. If I had any courage I would have put a 1000 share order in. But this already casino investing, and I didnt want to push my luck. I chose EIX over PCG because if it hadnt worked, I at least wanted a preferred that is still paying its dividend.

 

[bobandsherry]

Caught ALLY-A on the dip early yesterday, bought in another 500 shares @$25.42. Even if there is a call, and I'm not expecting one, the 52 cent dividend still above the premium above call paid. Also had a buy sitting out there for CDMOP $23.99 and snagged a couple hundred on the dip there too.

 

[Mulligan]

Caught ALLY-A on the dip early yesterday, bought in another 500 shares @$25.42. Even if there is a call, and I'm not expecting one, the 52 cent dividend still above the premium above call paid. Also had a buy sitting out there for CDMOP $23.99 and snagged a couple hundred on the dip there too.

Good trade pick up price on ALLY-A, Bob! I was watching on level 2 and saw it hit $25.40...I wanted so bad to buy more...But I made my bed of 1300 total shares at 25.65 and 67 and was going to lay in it. I just couldnt break my rule to overexpose myself even more. I certainly wish my price point was yours!

 

[Texas Proud]

Well, I got to give the bad with the good... this is updating my flipping I have been doing all year.. I went in a lot more this year than last, but have slowed down a LOT lately as the shares just are not recovering at all or are very slow to do so...


I currently have 2 lots, both underwater a bit... but one ex yesterday... with my projection I will have made almost as much as I did all of last year but with more money invested.. YTD annualized return is 18%... if you go with all money all the time (as one person said I need to do) then it is 12%... still better than buy and hold but not as high as I was doing before Aug.. I was in the 30% range then... since Aug I have actually lost $1400 to bring YTD income down to $2700....


Still something that is interesting to do, but I was hoping for a much better year... I was going at a $6900 pace but will probably be around $3000...

 

[Mulligan]

Well, I got to give the bad with the good... this is updating my flipping I have been doing all year.. I went in a lot more this year than last, but have slowed down a LOT lately as the shares just are not recovering at all or are very slow to do so...


I currently have 2 lots, both underwater a bit... but one ex yesterday... with my projection I will have made almost as much as I did all of last year but with more money invested.. YTD annualized return is 18%... if you go with all money all the time (as one person said I need to do) then it is 12%... still better than buy and hold but not as high as I was doing before Aug.. I was in the 30% range then... since Aug I have actually lost $1400 to bring YTD income down to $2700....


Still something that is interesting to do, but I was hoping for a much better year... I was going at a $6900 pace but will probably be around $3000...

Well I doubt it had anything to do with you Texas doing anything wrong, as many of the liquid preferreds have dropped a lot lately. I have rotated so much, I keep making money but small amounts...Like my SBNCM for example...I bought 800 shares at $11 and $11.50 about 2 weeks ago...Sold 300 at $15. No not only did I book a small but large percentage cap gain, it currently has the other 500 showing a probable unsustainable inflatable NAV.
My KTH is climbing up nicely....I booked $100 profit, lol, holding SCE-D a week. Only had 100 shares on a partial fill so I flipped. I still got the bigger SCE-G but its up only 30 cents or so.
I bought a few hundred of AHL-C the other day at around $24.80. It dropped like 50 cents, but largely recovered today.
Other than that the rest are not trading or about where they have been largely....I did by a 100 more shares of CNIGO at $26, unchanged from last sell which was a month ago or so.

 

[Sunset]

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

 

[Mulligan]

I dont follow it closely but I suspect some of it is this...They sold off their profitable data storage unit and invested heavily into their core mediocre business. Plus they acquired a telecom outfit in Hawaii this year that was poorly received. And they arent really making any money either...I left the scene after they sold off their data unit a few years ago. That was their money maker.

 

[Texas Proud]

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

They are not the only one who is dropping like that... I bought PIY for my flipping and it is down about the same amount... cost me a good amount of money I had scrapped flipping this year...



Also, TNP-E is another flip that has dropped after I bought for a flip... down about half of CBB...


SOOO, I think it is a market thing and not company specific...


See if this chart works...


https://quotes.freerealtime.com/quotes/symbol/Chart?qm_page=85078&symbol=CBB.P.B

 

[Mulligan]

They are not the only one who is dropping like that... I bought PIY for my flipping and it is down about the same amount... cost me a good amount of money I had scrapped flipping this year...



Also, TNP-E is another flip that has dropped after I bought for a flip... down about half of CBB...


SOOO, I think it is a market thing and not company specific...


See if this chart works...


https://quotes.freerealtime.com/quotes/symbol/Chart?qm_page=85078&symbol=CBB.P.B

Some crap and poorly capitalized companies preferreds have taken some spills no doubt. Many have held strong such as the term preferreds, live adjustables, and of course that rock of Gibraltar better known as AILLL.

 

[bobandsherry]

They are not the only one who is dropping like that... I bought PIY for my flipping and it is down about the same amount... cost me a good amount of money I had scrapped flipping this year...



Also, TNP-E is another flip that has dropped after I bought for a flip... down about half of CBB...


SOOO, I think it is a market thing and not company specific...


See if this chart works...


https://quotes.freerealtime.com/quotes/symbol/Chart?qm_page=85078&symbol=CBB.P.B

Flight to quality, FTR (tied to PIY) is struggling for sure, posting losses. TNP as well. All my preferred are holding up pretty well, none tied to company with financial issues.

 

[Mulligan]

Flight to quality, FTR (tied to PIY) is struggling for sure, posting losses. TNP as well. All my preferred are holding up pretty well, none tied to company with financial issues.

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.