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

[Texas Proud]

I am going to keep my GWSVP.... it pays a high divi compared to others with a B rating...

And since the company said they plan to keep it out until maturity, that takes the call penalty away...

 

[Slow But Steady]

Should we turn in our light sabers and farm medical marijuana for a living?

I'm saying that the agricultural endeavor you suggest would be more lucrative than these preferred stock issues.

 

[MooreBonds]

Sorry, Moorebonds...I tried and failed. I just sold that flea bag outfit at $25.50.... I have owned that issue twice and maybe have held it a week in total. I swear I am through with it!

You.....there's....[flustered sigh] I just don't even know what to say.

I am going to keep my GWSVP.... it pays a high divi compared to others with a B rating...

And since the company said they plan to keep it out until maturity, that takes the call penalty away...

That's my view TP. Sure, the press release is not legally-binding...but at the coupon, it's worth holding! And in the press release Primo said they are focused on paying down debt and becoming a more financially strong company. Can't beat it for a 10-year TRUPS of a reasonably sound company.

 

[Mulligan]

You.....there's....[flustered sigh] I just don't even know what to say.




That's my view TP. Sure, the press release is not legally-binding...but at the coupon, it's worth holding! And in the press release Primo said they are focused on paying down debt and becoming a more financially strong company. Can't beat it for a 10-year TRUPS of a reasonably sound company.

It may be reasonable compared to a shipper. Check the book value of the shares of Glacier common... It was like negative $25 last time I checked. Their accounting is way beyond me... Im a simpleton...I like real profits after interest payments are met and taxes paid, along with retained income. I dont think they had any of that! But it may be just fine like always... I past the test, Moorebonds. I bought, you didn't say how long I had to hold, lol.

 

[Coolius]

... I past the test, Moorebonds. I bought, you didn't say how long I had to hold, lol.

Now, THAT'S a spin worthy of Capitol Hill's finest Politicians !!

 

[Mulligan]

Now, THAT'S a spin worthy of Capitol Hill's finest Politicians !!

I should have waited an hour longer and then sold...That thing about went round trip... I just dont understand the finances...And I have tried before and just cant grasp the idea of depreciation and non cash charges making this company tick. And any company leaving a big slug of this yield out without being called is just highly suspicious. But, profitable to the people who own. Know matter what types of preferreds one owns, one should have some sort of philosophy and try to stick with it.....Im trying!

 

[Running_Man]

It may be reasonable compared to a shipper. Check the book value of the shares of Glacier common... It was like negative $25 last time I checked. Their accounting is way beyond me... Im a simpleton...I like real profits after interest payments are met and taxes paid, along with retained income. I dont think they had any of that! But it may be just fine like always... I past the test, Moorebonds. I bought, you didn't say how long I had to hold, lol.

Looking at Glaciers financial statements they have been losing about 7 million dollars per year from 2012 about 24 million dollars subtracts from shareholder equity as of the end of July 2016 because of this.

This has been accounted/accomplished by:

1) 12.0 million by increasing their line of credit which has increased from 41.5 million in 2012 to 53.5 million in July,

2) 2.0 million - a decrease of 2 million in deferred assets (non-cash amortization)

3) 2.4 million contingent liability - not sure what this is

4) 8.0 million - decrease in net fixed assets of 8 million dollars (not buying new machines letting old ones age in place).

This is an untenable situation which is probably why Primo has chosen to take them over. The business is primarily unprofitable because of the huge interest expense of 10-11 million per year and that prevents any reinvestment in fixed assets. If a company such as GE or the like could take them over and refinance 120 million of debt with some of that 3 percent debt they would instantly be profitable. But overall the finances are painting a bleak outlook for this business. Haven’t looked at Primo’s yet….There has been little danger of a call of the preferred primarily because there is no way to fund such a call and I don’t think they would find a welcome reception to a new round of funding. This appears to be a company at the end of it’s options depending on what the terms are for it’s revolver credit line.

 

[Mulligan]

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

RM, I just think something fishy is going on there. It may work out, but it doesnt operate in an accounting sense the way normal profitable entities do. But like a kid told not to touch the stove, I have twice even though I knew I shouldnt. I have probably made $40 in total owning it a week both times I could not keep my finger off the buy button. Then I get immediate buyers remorse because I knew better and still did it anyways.

 

[Mulligan]

Well that Glacier trade money freed up today, and I bought 200 more MER-K today at $25.48. High call risk, nice interest rate hike buffer if it doesnt get called. The 40 cent divi has been declared. Trying to stay in the yield trapped past call issues fairly close to par with new purchases.

 

[Slow But Steady]

Well that Glacier trade money freed up today, and I bought 200 more MER-K today at $25.48. High call risk, nice interest rate hike buffer if it doesnt get called. The 40 cent divi has been declared. Trying to stay in the yield trapped past call issues fairly close to par with new purchases.

Meanwhile, the extra half a bite of GWSVP I took at $25.42 closed at $26 today. Maybe I'll look to flip them at $26.42 or so. In any case, by mid-December, I'll be at break-even if the issue gets called.

The last thing I would presume to do is to say anybody's wrong. Just that everybody has to sleep at night, so it becomes a funny world.

 

[Mulligan]

Meanwhile, the extra half a bite of GWSVP I took at $25.42 closed at $26 today. Maybe I'll look to flip them at $26.42 or so. In any case, by mid-December, I'll be at break-even if the issue gets called.



The last thing I would presume to do is to say anybody's wrong. Just that everybody has to sleep at night, so it becomes a funny world.

Good Trade Slow! No, I am definitely not about maximizing income. I would need to go back to school for 2 years to learn fully accounting before I started investing in companies that are not easy marks to profitability and relative safety. I try to stick within my boundaries of safety and stick to my initial strategy. But, financially weak, poor capitalized companies can and do make excellent investments. Actually better, for income investing as their yields are higher, as long as they dont blow up.

 

[Running_Man]

BGEPF is up 4 today as BG earnings come out and revenues were expected to be around 8.2 billion and came in at 11.4 billion BG up 4 as well to 68+ even though earnings did not follow the same surprise.

 

[Mulligan]

BGEPF is up 4 today as BG earnings come out and revenues were expected to be around 8.2 billion and came in at 11.4 billion BG up 4 as well to 68+ even though earnings did not follow the same surprise.

Easily my biggest mistake of the year, not just continuing to hold BG or its preferred. Too intent to lock down gains instead of just holding long term.

 

[Running_Man]

Easily my biggest mistake of the year, not just continuing to hold BG or its preferred. Too intent to lock down gains instead of just holding long term.

I do not know I would call buying BG at 33 back in February and subsequently selling at whatever price a mistake. Look at the chart and I would call that one of your best moves of the year.

The identifying of the purchase price as a great value is huge, I know that your input in getting me into BGEPF @ 78 was very insightful, I have to consider now that if the price rises to 110 and yield falls below 4.5% I will sell and switch to another preferred because at that price it will be trading mostly for the conversion.

The diversification that BG provides in the preferred arena is going to be hard to replace, this dividend is far more secure in bad times than most companies and investors really know, looking at financials you look at the balance sheet ratios which aren’t great, but soybeans and vegetable oil will always sell and provide boring income, making the preferred dividend extremely reliable. But how many years dividends in advance does it take for me to sell a preferred like this? right now sitting at about 5 years……………….

 

[Slow But Steady]

I had an order in from the other day to sell 500 GWSVP at $26.42. Today someone took 5 out of 500. I was getting excited when I saw the confirmation email from Schwab. Oh, well.

Edit: I just remembered that I have 300 free trades on this account, so the $5 profit I made on the sale of 5 shares won't be totally eaten up on commissions. Still, it uses up one of my free trades.

 

[Coolius]

A seller has emerged for CNLPL - a rare event. Ask is $53.82, bid $53.53.

I bought 100 shares at $53.84, and now have a full position, so not adding more at this time.

Note that a call for CNLPL will result in a $51.84 payment - NOT par value of $50. That helps reduce exposure to cap loss in case of call.

 

[Running_Man]

And right at the close BGPFE fell 5 points on 5K volume,

 

[Mulligan]

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

And right at the close BGPFE fell 5 points on 5K volume,

You are still doing very fine YTD on this, RM.
Last 2 weeks I have settled on a plan and sticking to it...The drooping of prices has begun. I flipped my way to bonus profitability, on the way up. I will not do this on the way down. I decided a "circle the wagons" approach. I am staying fully invested. Always reinvest dividends and left over monthly pension proceeds. So if prices drop I want it in quality companies knowing its just rate hike fears, not any impending financials with a poorly capitalized company. Probably over time beneficial to me if they drop as these proceeds will then be reinvested at a higher yield. So my cowboys that will be called on to circle the wagon are... AILLL, AILNP, RNR-C, UEPCO, CTWSO, FIISO, CNLPL, KCC, PVTBP (small 100 lot here I forgot about to sell months ago with the others), HE-U, UBP-F.
Stepped up and bought 1000 shares of HE-U on a rare opportunity past 2 days. Doubled down yesterday on UPB-F, and reentered KCC 2 weeks or so ago. Just going to let these ride.... Now if market goes crazy and one has a huge sell off and others are stable, I may rotate more into the one with a sell off if it happens.
Slow, I hope you got your shares sold at the price you wanted. Funny how you notice things that were unnoticeable before...The company that bought out Glacier, offers big water jugs for sale at my local grocery store I noticed this week. Never paid attention to them before despite walking by them once or twice every week.

 

[Slow But Steady]

Somebody (or rather two somebodies) took another 16 of my GWSVP shares at $26.42. Ten in one transaction and 6 in another. I believe it's ex-div today, so I get the $0.19 per share.

These don't show on the high for the day. Is it because it's an odd lot?

I'm sure glad I'm trading free on this account.

 

[Mulligan]

Somebody (or rather two somebodies) took another 16 of my GWSVP shares at $26.42. Ten in one transaction and 6 in another. I believe it's ex-div today, so I get the $0.19 per share.



These don't show on the high for the day. Is it because it's an odd lot?



I'm sure glad I'm trading free on this account.

Yes, it takes a 100 plus lot transaction to officially move price...Multiple transactions of same sell order throughout same day only result in one transaction cost per day...
Took advantage of MHNB sell off and bought 1000 shares at $25.28. BBB- investment grade insurance 8% note has two 50 cent divi's before it can be called..One is next month... Playing close to vest with near callable issues.

 

[Mulligan]

MHNB really sold off on 7 times daily volume. Has to be an institution. Common up 5% today and debt rating this fall upgraded and MHNB was already investment grade to begin with. Bought 500 more shares right at par at market close... Very pleased with that... Had to sell off UBP-F at a 20 cent profit bought last month and my RNR-C at cost to get them. But in return I got two 50 cent divis guaranteed before call in March. A great place to hide out next 4 months to see if yields move up.

 

[Freedom56]

MHNB really sold off on 7 times daily volume. Has to be an institution. Common up 5% today and debt rating this fall upgraded and MHNB was already investment grade to begin with. Bought 500 more shares right at par at market close... Very pleased with that... Had to sell off UBP-F at a 20 cent profit bought last month and my RNR-C at cost to get them. But in return I got two 50 cent divis guaranteed before call in March. A great place to hide out next 4 months to see if yields move up.

I 'm going to try pick some more MHNB tommorrow. I bought 500 last February at 24.85. I picked up CXW 5% notes at 92 this morning. It closed ar 96 at the end of the day. It should be a safe bet until maturity in 2022 or at least the next 4 years.

 

[Mulligan]

You were on your game buying these back in February, Freedom. I didnt even knew they existed back then. I am still narrow minded in what I buy, but was even worse back then.

 

[Freedom56]

You were on your game buying these back in February, Freedom. I didnt even knew they existed back then. I am still narrow minded in what I buy, but was even worse back then.

I also bought MHNC at 24.72 and MH-C at 22.50 back then. I tend to buy only BB+ and higher rated notes and preferred stocks. We are going to see some more selling pressure on income oriented investments as the 10 year note yield rises.

 

[Mulligan]

And after a few very quiet and upward creeping price movements, the downward spike could get unnerving to some not familiar. Calls wont bother me, but getting caught with a low yielder and getting hammered capital wise would. Thus the urge to hide out in these rare higher yielding ones staring at a call with some meat on the bone still.