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

[Mulligan]

Picked up some GLP-A today, still debating that PBI-B

I have owned GLP-A a few times and presently do own it buying around par again about 6 weeks ago. Feel pretty comfortable owning it. Trying to play a little future price spike on KTBA buying at $26.70 today. Have traded bounces on it a few times for modest flip gains. It cranks out a 6 month interest payment next month.
Notice IPWLO hadnt traded in 6 months so I bought 100 shares at $88 today. $8 lower than last trade in Oct. Just having a little fun buying a dark OTC grey. Funny thing was 130 more shares traded at same price after I did after being dormant so long.

 

[brokrken]

I have owned GLP-A a few times and presently do own it buying around par again about 6 weeks ago. Feel pretty comfortable owning it. Trying to play a little future price spike on KTBA buying at $26.70 today. Have traded bounces on it a few times for modest flip gains. It cranks out a 6 month interest payment next month.
Notice IPWLO hadnt traded in 6 months so I bought 100 shares at $88 today. $8 lower than last trade in Oct. Just having a little fun buying a dark OTC grey. Funny thing was 130 more shares traded at same price after I did after being dormant so long.

You're a trailblazer!

 

[bobandsherry]

My biggest holding is now EBGEF which will roll into over 6..7% yield on my recent purchase price of about $19.80 for this BBB- issue. Over a third of my shares now in various Canadian resets though a lot is still US currency based despite trading on TSX.

Thanks for the heads up on EBGEF, got in just a few cents more than you. As I'm sure you know, Enbridge now officially announced div at the higher rate, right where you said it would be. Based on the 6.7% yield, with this being qualified and investment grade I'm thinking this should trade closer to 6%, so I'm expecting this to trade around $22.50 or so, a possible run-up of a couple bucks from today's price.

 

[Mulligan]

Thanks for the heads up on EBGEF, got in just a few cents more than you. As I'm sure you know, Enbridge now officially announced div at the higher rate, right where you said it would be. Based on the 6.7% yield, with this being qualified and investment grade I'm thinking this should trade closer to 6%, so I'm expecting this to trade around $22.50 or so, a possible run-up of a couple bucks from today's price.

Bob, normally if I have a preferred that pops a buck, I start eying a sell and flip. Even if this goes up a buck I would have no desire to sell. Quality wise in relation to yield there just wouldnt be a suitable replacement even if it did pop some. So it looks like a long term hold.

 

[Mulligan]

Picked up some GLP-A today, still debating that PBI-B

PBI keeps dropping with interest payment approaching....Ken its your destiny to buy! That yield is going to look too tempting!!
I would be interest maybe for a smaller play, but no money in my high risk bucket. Dont want to sell what I have to buy any.

 

[bobandsherry]

Bob, normally if I have a preferred that pops a buck, I start eying a sell and flip. Even if this goes up a buck I would have no desire to sell. Quality wise in relation to yield there just wouldnt be a suitable replacement even if it did pop some. So it looks like a long term hold.

Yeah, this looks like a long hold for me too.

 

[brokrken]

PBI keeps dropping with interest payment approaching....Ken its your destiny to buy! That yield is going to look too tempting!!
I would be interest maybe for a smaller play, but no money in my high risk bucket. Dont want to sell what I have to buy any.

You're right. I bought a little (200 shares). Funny thing is I forgot to make all or none. So, I got 1 share 4 times, then 196 finally.

 

[Sunset]

Thanks for the heads up on EBGEF, got in just a few cents more than you. As I'm sure you know, Enbridge now officially announced div at the higher rate, right where you said it would be. Based on the 6.7% yield, with this being qualified and investment grade I'm thinking this should trade closer to 6%, so I'm expecting this to trade around $22.50 or so, a possible run-up of a couple bucks from today's price.

Well I hope so, I just picked up 200 shares.

 

[MooreBonds]

PBI keeps dropping with interest payment approaching....Ken its your destiny to buy! That yield is going to look too tempting!!
I would be interest maybe for a smaller play, but no money in my high risk bucket. Dont want to sell what I have to buy any.

I haven't looked too closely at it - their cash flow statements look fairly strong...what are they doing with all of that cash flow? I see them calling in a 4% convertible - but yet they leave the debt that has a 67% higher interest rate?

 

[bobandsherry]

I haven't looked too closely at it - their cash flow statements look fairly strong...what are they doing with all of that cash flow? I see them calling in a 4% convertible - but yet they leave the debt that has a 67% higher interest rate?

Both of the issues they are redeeming are convertible shares. Look at the redemption details, highly doubtful any cash will be paid out.

 

[Mulligan]

Both of the issues they are redeeming are convertible shares. Look at the redemption details, highly doubtful any cash will be paid out.

Yes, I agree...And notice when they announced the redemptions...Right after they recently cut the divi of the common stock to where it pays less than those preferreds did, lol..
The trouble is their whip and buggy business segment is still the cash cow and they are trying to wean off it into other segments.
This one may be different but I have avoided all sorts of pain staying out of these types of businesses and sectors...IE retail dogs, mall reits etc. If the forest looks diseased I am not one to usually go in and look for the prettiest tree in that forest.

 

[brokrken]

Yes, I agree...And notice when they announced the redemptions...Right after they recently cut the divi of the common stock to where it pays less than those preferreds did, lol..
The trouble is their whip and buggy business segment is still the cash cow and they are trying to wean off it into other segments.
This one may be different but I have avoided all sorts of pain staying out of these types of businesses and sectors...IE retail dogs, mall reits etc. If the forest looks diseased I am not one to usually go in and look for the prettiest tree in that forest.

I’ll keep you guys updated on how it plays out

 

[Mulligan]

I’ll keep you guys updated on how it plays out

I think u will get to report back with a positive report!

 

[MooreBonds]

Enbridge Series 1 - Got in at about 6.87% yield

Looking around at the various Enbridge preferreds, I saw their Series 1 with a little higher yield. It pays out in US$, with a fixed 3.14%+5 year US Treasury. Rate reset was in 2018. Currently pays $.37182/quarter (US$) until 6/1/2023. I called TD Ameritrade. They had to create an internal symbol of ENB(space) PRVCN, so if you have an account w/ TD Ameritrade, they should be able to quote you that, since there's no official gray market symbol like some of the other Enbridge preferreds. Another broker would have to likely create their own symbol

Underlying stock on the Toronto exchange is ENB.PR.V
web.tmxmoney.com

What confused the hell out of me at first is that both the prospectus and Enbridge's site say they pay the dividend in US$. When I get a quote on the above Toronto exchange site, I could have sworn it said the quote was in CAD$. Which is currently about $21.60-something. So if it's paying $1.49/year in US$, that should mean the Toronto security has a dividend (when converting the dividend from US$ to CAD$) of about CAD$1.94/year - which would be a sky-high yield of 9%! At first I thought I found a secret, but my hopes were dashed when TDA quoted the ENB PRV at the same $21.60s in US$ that the Toronto site quoted in CAD$! I asked TDA to verify and double check that they were quoting me US$, since I told them I am seeing a quote on the Toronto exchange clearly listing it as CAD$. But they said the $21.60 was US$.

I reluctantly placed an order for 300 shares, having to be content with a 6.87% yield and not the 9% that I was fantasizing about. But still not bad for a decent quality payer.

 

[brokrken]

I reluctantly placed an order for 300 shares, having to be content with a 6.87% yield and not the 9% that I was fantasizing about. But still not bad for a decent quality payer.

Not bad, at all!

 

[Mulligan]

Ken, PBI-B had a bit of a spill caught up in poor earnings announcement. Did you kick the tires more or just letting it play out?

 

[brokrken]

Ken, PBI-B had a bit of a spill caught up in poor earnings announcement. Did you kick the tires more or just letting it play out?

Just letting it play out. Of course, I wish I would have waited a few days to buy, but no biggie. While their main business is shrinking, it won't go away over night and they generate nice cash flow. So, I'll clip a nice divvy until they decide to call this one.

 

[Mulligan]

Made almost $3 a share on my Power Reit preferreds, cashing in today after holding maybe a month...Crazy spike happened.

 

[Mulligan]

Just letting it play out. Of course, I wish I would have waited a few days to buy, but no biggie. While their main business is shrinking, it won't go away over night and they generate nice cash flow. So, I'll clip a nice divvy until they decide to call this one.

Looks like its appears to have found its footing again and stabilizing. I thought about a flip when it went below $23 but never quite had the nerve to pull the trigger. Have only tweaked some. Bought another 100 of IPWLO at $85. Someone bought right after me at $88.50. The life of an illiquid. Funny its previous trade was last Oct. at $94, and I have bought 2 different dates with someone buying behind me both days and that has been all its trading.

 

[brokrken]

Looks like its appears to have found its footing again and stabilizing. I thought about a flip when it went below $23 but never quite had the nerve to pull the trigger. Have only tweaked some. Bought another 100 of IPWLO at $85. Someone bought right after me at $88.50. The life of an illiquid. Funny its previous trade was last Oct. at $94, and I have bought 2 different dates with someone buying behind me both days and that has been all its trading.

Yep, minor knee jerk reaction. Speaking of tweaking, I just can't find any deals out there. I am sitting on some cap gains in SSW-G and RILYZ that I wouldn't mind realizing, but there's no where else to put that money...

 

[Mulligan]

Yep, minor knee jerk reaction. Speaking of tweaking, I just can't find any deals out there. I am sitting on some cap gains in SSW-G and RILYZ that I wouldn't mind realizing, but there's no where else to put that money...

Ken, I bought 30 more shares of SLMNP yesterday. It doesnt trade often but 500 came out yesterday. Selling at 1035. Its a 6% $1000 par perpetual uncallable...However it has an owner put at any time to company for $1000. An amazing feature that is unheard of in preferred stock land. As the entire concept of preferreds is the owner assuming asymmetric risk. Here its flipped completely with the company assuming the asymmetric risk.
LYB is BBB+ debt rated, so the preferred is BBB-. When LYB acquired Schulmann it couldnt redeem the preferred but they could cancel the convertible provision and allow tendering at any time going forward. About 115,000 shares exist. About 10k have been tendered. I assume those were at merger last fall.

 

[Mulligan]

Very solid gas ute Spire issued a 5.9% QDI preferred that is temp ticker SIPRY. Hot naturally out of gate. Looking like DUK-A redux again. I bought 2000 total at 25.50 and 25.55. What can you do, hold ur nose and buy.

 

[bobandsherry]

Very solid gas ute Spire issued a 5.9% QDI preferred that is temp ticker SIPRY. Hot naturally out of gate. Looking like DUK-A redux again. I bought 2000 total at 25.50 and 25.55. What can you do, hold ur nose and buy.

Looks interesting for high quality QDI, though Moody's is slightly lower than DUK-A so may not have the same path as DUK-A. So, did you break open your piggy bank or what did you decide to unload for the $50K? Just curious what you thought had reached the end of the road for you.

 

[Mulligan]

Looks interesting for high quality QDI, though Moody's is slightly lower than DUK-A so may not have the same path as DUK-A. So, did you break open your piggy bank or what did you decide to unload for the $50K? Just curious what you thought had reached the end of the road for you.

Bob, one rarely gets a bit of the ute preferred apple. Only 4 were issued from late 2012 to late 2018. Three have been issued in past 6 months...DUK-A and NI-B, and they shot up also.
Plus Spire is my local ute I pay monthly too. Know them well and trust them. Was thrilled to have a backyard issuance come my way at a very decent ute preferred yield.

 

[Mr._Graybeard]

This is such a great thread.