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

[Sunset]

In preparation for rolling over a 401k, I had on open order to sell all my CNTHP at $54.20. Got a partial execution today, and leaving me with 27 shares, and thereby, another transaction fee.

At least I wasn't left with just 1 share. (Though that could still happen.)

You could always do an all or none order.

 

[Sunset]

In preparation for rolling over a 401k, I had on open order to sell all my CNTHP at $54.20. Got a partial execution today, and leaving me with 27 shares, and thereby, another transaction fee.

At least I wasn't left with just 1 share. (Though that could still happen.)

And why sell just to rollover instead of rollover "in kind" ?
Is there something about preferreds that is special to rollovers ?

 

[Mulligan]

You could always do an all or none order.

Just my personal opinion, but I will not use AON with illiquid preferreds and will just complain when I get the bad execution. They trade so infrequently and low volume, you risk getting no shares sold at wanted price. Then you get passed over and may have to sell at a lot lower price. Also one can just keep the odd lots left over, too.
When I first started buying and selling illiquids it seemed like I was getting passed over a lot.

 

[Coolius]

Just my personal opinion, but I will not use AON with illiquid preferreds and will just complain when I get the bad execution. They trade so infrequently and low volume, you risk getting no shares sold at wanted price. Then you get passed over and may have to sell at a lot lower price. Also one can just keep the odd lots left over, too.
When I first started buying and selling illiquids it seemed like I was getting passed over a lot.

Agree with Mulligan; for illiquid Preferreds, I do not use AON. I have been passed over too many times to keep count.

Stopped AON for illiquids some time back. But for liquid stocks, yes, it's a great tool under the proper circumstances.

 

[Texas Proud]

Just a comment about AON....

If you get free or cheap trades you can break your order up into smaller lots, say 100 share each...


I have thought about doing that, but so far I have only been caught once and it cost me $2...

 

[Slow But Steady]

And why sell just to rollover instead of rollover "in kind" ?
Is there something about preferreds that is special to rollovers ?

I'm advised that while it's possible to poll over an IRA in kind, that's not as easily done with a 401K. I'm not sure whether that's true, but it seemed prudent to sell these few shares at my price.

Regarding AON orders, I learned from you folks here that they are not likely to fill. Indeed, this one wouldn't have.

 

[Mulligan]

I was back at it today. Content to lock in small profits on some of my flippers... Sold all 700 shares of MNR-B for a quick 30 cent profit for 2 weeks. Used it to buy 700 shares of high quality ARE-E at $25.82 that will undoubtably be called next year. Same strategy as before...Buying issue with above market yield with some meat on the bone left and flip to a fool. ARE-E was down today and going exD tomm so this was no a brainer... Be selling to some fool here in a few weeks. MNR-C went below 6% today so I flipped out all mu shares today at a 65 cent profit. May regret this but I will look to buy lower or buy more past call under call price flippers to steal some easy money without being chained to a low yielding issue not callable yet.

 

[Running_Man]

Government is smelling blood with Wells Fargo and looks like they want a bank to make an example of Wells Fargo leading into the elections, WFC-PL is feeling the strain and dropped 17 bucks today. I do not see how the CEO manages to hold on to his job but losing the CFO would be more troublesome as he has been the brains for Wells Fargo from the conference calls I have been listening to, CNBC is bringing guests on to wonder why government has not brought the hammer down on WFC before now. along with the very large problems at Deutsche Bank from their penalties---- expect weaker prices for the next month. I am continuing to hold as I expect pressure will lessen after November but there is the chance WFC is seriously impaired for profitability going forward

 

[Coolius]

The banking sector, including preferreds, is taking it on the chin today. Lots of big declines.

Even extremely thinly traded issues, like SIVBO, got dumped today - recovered, then dumped again.

 

[Texas Proud]

Government is smelling blood with Wells Fargo and looks like they want a bank to make an example of Wells Fargo leading into the elections, WFC-PL is feeling the strain and dropped 17 bucks today. I do not see how the CEO manages to hold on to his job but losing the CFO would be more troublesome as he has been the brains for Wells Fargo from the conference calls I have been listening to, CNBC is bringing guests on to wonder why government has not brought the hammer down on WFC before now. along with the very large problems at Deutsche Bank from their penalties---- expect weaker prices for the next month. I am continuing to hold as I expect pressure will lessen after November but there is the chance WFC is seriously impaired for profitability going forward

Just as an FYI, it is almost always the CFO who does those qtrly calls... does not mean he/she is calling the shots...

 

[Running_Man]

Just as an FYI, it is almost always the CFO who does those qtrly calls... does not mean he/she is calling the shots...

It totally depends on the company, also I go by how competent I feel the executives are, anyone that listened to a Valeant Call should have realized they had no understanding of their financials, the same held true when I listened to a Citibanks call in 2007 on the off balance sheet transactions. The Wells Fargo CFO is light years ahead of the average CFO and much better than the CEO as recent testimony to Congress is proving, I think the CFO is a much bigger loss

 

[Mulligan]

The banking sector, including preferreds, is taking it on the chin today. Lots of big declines.

Even extremely thinly traded issues, like SIVBO, got dumped today - recovered, then dumped again.

I watched that.... I was tempted but SIVBO is in the danger zone now...Just went exD, way past call and high yielding TRUP debt. Its call risk must be respected and no dividend declaration is on horizon for a while. I dabbled buying a pre market issue of a small reit CIO... The 6.6% preferred temp ticker is CYORP. Not recommending, I just 200 for the fun of it. I found a reit preferred I liked mentioned by someone on another forum that I bought. Then I found out Coolius has owned for couple years and never told me...Thanks a lot, Coolius! [emoji3] . Wouldnt have mattered, I only recently have learned to trust them anyways.

 

[Slow But Steady]

The last 27 shares of my CNTHP were taken at $54.25.

In other news, I took a big bite of AHT-A. I also own the common and the D preferred. It's really too much AHT, so I may pull a Mulligan and flip some of it. Of course, if you believe in the common, then by definition, you have to believe in the preferreds.

 

[Coolius]

Bought some shares of NNN-E, National Retail Properties 5.7% E series preferred. YTFC is a low 2.9%, assuming a call in May 2018.

However, this is a worst case, so I'm taking it as a 1.5 year 2.9% CD.

Strong company, diversified tenant base, and reasonable debt ratios.

 

[Mulligan]

The last 27 shares of my CNTHP were taken at $54.25.



In other news, I took a big bite of AHT-A. I also own the common and the D preferred. It's really too much AHT, so I may pull a Mulligan and flip some of it. Of course, if you believe in the common, then by definition, you have to believe in the preferreds.

Somebody here loves AHT. Slow you a corporate insider, ha! Good luck. They certainly have juicy dividends that are nice to receive quarterly. I finished out my UBP-F purchase today at $26.04. Have 490 shares, ten short of my 500 wanted, but that is close enough. Same strategy as last weeks 1000 shares of ARE-E purchase. Looking to flip or hold until call next year with a profit. Just playing the short term side of market with recent purchases.

 

[MooreBonds]

I watched that.... I was tempted but SIVBO is in the danger zone now...Just went exD, way past call and high yielding TRUP debt. Its call risk must be respected and no dividend declaration is on horizon for a while.

So what happened to your feeling that replacing this with other debt/preferred stock would have had a negative net impact to their balance sheet and/or bottom line?

I dabbled buying a pre market issue of a small reit CIO... The 6.6% preferred temp ticker is CYORP. Not recommending, I just 200 for the fun of it. I found a reit preferred I liked mentioned by someone on another forum that I bought. Then I found out Coolius has owned for couple years and never told me...Thanks a lot, Coolius! [emoji3] . Wouldnt have mattered, I only recently have learned to trust them anyways.

I picked up 100 CYORP at 24.90 today. Not too excited about it...but at least a 6.6% YTC isn't the end of the world. Also picked up 100 CUBI-F, a new issue. Just a 6% coupon (non-callable), but it's a qualified dividend for those holding in taxable accounts.

 

[Mulligan]

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

So what happened to your feeling that replacing this with other debt/preferred stock would have had a negative net impact to their balance sheet and/or bottom line?




I picked up 100 CYORP at 24.90 today. Not too excited about it...but at least a 6.6% YTC isn't the end of the world. Also picked up 100 CUBI-F, a new issue. Just a 6% coupon (non-callable), but it's a qualified dividend for those holding in taxable accounts.

Its just risk/reward...When I bought at $26 the 40 plus divi had already been declared... but when somebody offered me $26.60 I was out the door... After PJS clipped my wings with a call, it ticked me off. So I have been staying with buying 6% plus issues under a divi over par. Also heavily interested in issues near certain to be called next year. Ready to flip or ride until call. Looking at more capital preservation in some purchases than maximizing yield...
I wont ever initiate a new position in anything that is over a divi above par, past call, and no next dividend declared yet...Call fever is heating up!

 

[RE2Boys]

This thread has been quiet for several days so thought I'd add a confirmation that EYMXP will be called sometime in near future. Here's an article on a new Entergy issue that mentions EYMXP:
Utility Entergy Mississippi Sells First Mortgage Baby Bonds | The Yield Hunter

 

[Mulligan]

Yep, RE, another 6% er gone..... I havent done anything in over a week. I largely have thrown a huge chunk of my flip money tied up into 1000 share purchases of ARE-E, UBP-F, and a lesser amount in AES-C. I may lighten my load in AES-C but not until I snag that divi next week. Im just hiding out in those former 2 as they are higher yielders and will be called next year, so there is price support there.

 

[Mulligan]

Well you cant get a good flipper down for long. Im down to rubbing nickels now as squeezing extra juice out is getting harder. Sold out all my ARE-E for about 35 cent gain for 2 weeks. Since it will be called in Feb most likely I took the quick profits and bought UBF-G at $26.40. It is about to kick out a nice juicy divi with its sister issue I own UBP-F here in a couple weeks. Had to sell 100 shares of AES-C also to scrap up enough money to cover additional purchases of AILLL/AILNP today. Only was given 63 shares of the former but landed a juicy 100 share lot of the latter. Its only traded about 1000 shares the past 3.5 years and I have snagged 400.... Of course there are only 4500 shares outstanding. Buying at $104 will be a swift kick in nards if its called, but so be it. To add more 7.5 % juicy ultra safe pay forever yield is worth it. I was shocked I got more, but since my brokerage was giving me an unapproved $10,400 loan, I had to sell something to pay and stay in good graces and not get my account suspended.

 

[Texas Proud]

Well Mulligan....

I have decided to do some flipping on my own... starting to look for some issues that pay a good divi.... buy before record date, take the divi and then sell a week or so later... so far it looks like most of the ones I have looked at recover within two weeks...


I am doing it small right now, about $11K...


Got my first one a couple of weeks ago, sold it and am onto my second one right now...

 

[Mulligan]

Texas, for the right stocks, I think your thoughts are correct. And based on my last two transactions like you did with MNR-B and ARE-E it works pretty smoothly with issues that will be called. Get them with a little meat on the bone and right price you are protected on your back side if the appreciation would happen not to occur for a while.

 

[aja8888]

Anybody have any info on why CHSCM took a dive today?

 

[Mulligan]

Anybody have any info on why CHSCM took a dive today?

Maybe finally catching up to CHSCL's recent fall? They both are up about 6% on the year. Some preferreds especially the more liquid ones that appreciated alot are just giving up some of the mania buying gains from earlier in year. Some rate hike scare talk. My core issues have largely slept recently though I took advantage of some decent issues that prices sagged and bought and flipped.
I would like to get back into CHSCL or CHSCM but they both have to drop $1.50 more or so before I can feel comfortable about buying.

 

[Mulligan]

Anybody have any info on why CHSCM took a dive today?

Ok, Aja, from now on you have someone to cry with on future CHS losses... I reentered CHSCL at $28.20 today for 200 and also 200 of CHSCO at $28.80. I wanted 400 of O but it started heading back up and L kept going down so I bought L.