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

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I usually buy only $5000 worth to limit exposure. When rates started to rise or were supposed to rise I added to the position because this was a floater.

The $5k +/- self-imposed limit is also what I typically try to follow for preferred issues - I might pick up a $3,000-$3,500 position in the common if I think it's a decent risk-adjusted yield play (mainly for BDCs). I did own ISM/OSM in the past, way back when they were first discussed on the forum, but sold before the plunge a few years ago. I was too afraid of all of the uncertainty surrounding if student loans would be detached from gov't oversight, if they would kick Sallie to the curb from the gov't halfway house and make her fend for herself (and not have near the value without the gov't backstop on the loans), so I didn't want to touch it with a 20ft pole.

Of course, given some of the other crazy risk decisions I've made (damn shipping companies....ahem), you'd probably ask why I didn't try a encore attempt with ISM/OSM. But, one of those many investing regrets.
 
I have been reading articles and am connecting the dots on what they are trying to do by acquiring the Pa utility and creating the part ownership subsidiary of Leatherstocking which pipes the gas out of shale country.
As other parts of the nation protest a pipe being built... CNIG is going opposite way stirring the restless natives to protest why the pipeline HASNT been built yet. Accretive bolt ons to service unserviced populations will really boost returns on a company servicing only 15,000 now.
Crouch: "Cuomo Needs to Snap on a Pair and Approve Constitution Pipeline"Natural Gas Now

You do have an interesting idea....if it weren't for the massive ownership by 2 intelligent people and possible growth, I would laugh off a 3% ute at 20-25x earnings with a microcosm service area - but if our new house bids somehow come in at budget (a true impossibility, given the interior designer's whims), I might scare up a few grand to throw at the roulette wheel.
 
RunningMan, I forgot to mention, but the PE is a little artificially distorted due to the Pike utility transaction...They clearly got a deal on this.
In 2016, our consolidated net income was approximately $3.1 million, an increase of approximately $1.3 million from 2015, mainly due to the bargain purchase adjustment for the stock acquisition of Pike of $1.2 million. This is a one-time transaction related to the acquisition of Pike in August.

I have been reading articles and am connecting the dots on what they are trying to do by acquiring the Pa utility and creating the part ownership subsidiary of Leatherstocking which pipes the gas out of shale country.
As other parts of the nation protest a pipe being built... CNIG is going opposite way stirring the restless natives to protest why the pipeline HASNT been built yet. Accretive bolt ons to service unserviced populations will really boost returns on a company servicing only 15,000 now.
Crouch: "Cuomo Needs to Snap on a Pair and Approve Constitution Pipeline"Natural Gas Now
They also only had one month’s worth of margin from operation of the Pike acquisition and that income was over $300,000.
 
They also only had one month’s worth of margin from operation of the Pike acquisition and that income was over $300,000.



In the scheme of things this is one tiny pimple on a rear company. It would have to get bigger to be eaten by a big player as their earnings wouldnt even make a footnote on a big player, lol. They are wanting to get nat gas to bolt on areas and a few big corps that I am sure is wanting the service.
The small companies can be so incestuous it would be hard to tell whether a peon outside investor like me would be the windshield or the bug until after the event, lol. I do see why companies issue preferred stock offerings only to existing shareholders (besides keeping the goodies themselves). They save a boatload avoiding underwriting costs. It only cost them $1100 in SEC filings to issue the CNIGO and CNIGP issues.
 
And with a few hawkish comments Yellen is running interest rates back up towards the top of the recent trading range. This is interesting, companies reporting declining sales, FED talking about economy running too hot. Next interest rate hike should be a doozy
 
And with a few hawkish comments Yellen is running interest rates back up towards the top of the recent trading range. This is interesting, companies reporting declining sales, FED talking about economy running too hot. Next interest rate hike should be a doozy



Inflation number a bit hot today, but the trend will be hard to keep at this pace. Rates crept up more today, yet preferreds kept snoozing today.
 
Picked up 200 shares KIMPRJ at $23.65, yielding 5.85%. I can stomach this for a while.



Was you partaking of the wine early yesterday? That purchase isnt what I know you to buy. I thought you were "Give me adjustables or give me death". :)
 
Pleased to snag 100 shares of AILNP today at $109. 75 came early and 25 were tossed in right before market close. Getting a nice little collection through the years of this bad boy.
 
Was you partaking of the wine early yesterday? That purchase isnt what I know you to buy. I thought you were "Give me adjustables or give me death". :)
No, I only had a Goldman, a Morgan Stanley, and the OSM as a floater to protect against rising rates. The OSM, as you know was called. I will opt to increase my $5000 issue limit, and dollar cost down if rates rise enough to decrease my initial cost/ increase yield. It's been 8 years in this preferred market investment world, and feel fairly calm about it's direction.
 
Did some moving around the other day. Bought 200 shares of MHO-A. Juicy yield of close to 10% QDI, and doing fine now. But keeping an eye on it. Shameless yield grab of over 10% JCPenny debt (JBN) of 400 shares on Monday, also. Bought back 400 shares of CFC-B at $25.61 after sell them last week at $25.68 to free up quick cash for the AILNP trade that I was caught short cash handed at the time.
 
Here my list...hoping to hold steady

AILLL 2525 shares
CNLPL 800 shares
CNTHP 650 shares
CHS 100 shares
KTH 500 shares


PFF 750 shares

Milestone: Have reached $300,000+ in Mulligan preferred Funds....getting a little concerned

AILLL 2525
CNPL 800
CNTHP 650
CHSCM 899
KTH 500
WFC+J 500
WFC+L 50
AHTPRA 470
PFF 1500
 
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I do not recognize the symbol CNPL.

Could you have meant CNLPL ?
 
I do not recognize the symbol CNPL.

Could you have meant CNLPL ?



If I was a betting man (and I am) I would push all the chips in on it being CNLPL. It appears to me Capjack likes issues that will pay without fear. Solid lot, there Cap!
Going by memory my current roster is AILLL, AILNP, CNIG, CNTHP, CNLPL, FIISO, CFC-B, JBN, UBP-F, CTWSO, and MHO-A.
Currently getting nowhere, but got bids out on two bombed out ultra safe issues that are uncallable. One of them only has 800 shares left outstanding...But with 175 times dividend coverage, I aint going to give up quickly. But last 10k I read from a few years back said only 4 owners were left so my hopes arent too high on that one.
 
If I was a betting man (and I am) I would push all the chips in on it being CNLPL. It appears to me Capjack likes issues that will pay without fear. Solid lot, there Cap!
Going by memory my current roster is AILLL, AILNP, CNIG, CNTHP, CNLPL, FIISO, CFC-B, JBN, UBP-F, CTWSO, and MHO-A.
Currently getting nowhere, but got bids out on two bombed out ultra safe issues that are uncallable. One of them only has 800 shares left outstanding...But with 175 times dividend coverage, I aint going to give up quickly. But last 10k I read from a few years back said only 4 owners were left so my hopes arent too high on that one.

Correct.....CNLPL......
 
My largest positions are CNLPL, CNTHP, WFC-L, HE-U and AILLL. Several smaller holdings to round off the Big Boys.

Plus a couple of high yield, high risk preferreds to add the element of excitement and sleepless nights....:LOL:

With increasing likelihood of slow rising rates for a while yet, I think our Mulligan Stock Picks will do just fine going forward.
 
My "big 4", making up 12% of the preferreds: FIISO, GWSVP, WFC-L, OSBCP.
The next 13 tier, making up 19%: CNTHP, BRG-A, SIVBO, ALLY-a, JMPB, IPWLK, LTS-a, CRLKP, MDLX, AES-c, GLFPN, PFX, BKEPP.

From there, another 85 securities make up the remaining 69% of the preferred stash. Like Winemaker, I try to limit my preferreds to no more than $5,000 per parent company (many holdings are just $2,500 per issuer), but I do make a few exceptions.
 
My "big 4", making up 12% of the preferreds: FIISO, GWSVP, WFC-L, OSBCP.
The next 13 tier, making up 19%: CNTHP, BRG-A, SIVBO, ALLY-a, JMPB, IPWLK, LTS-a, CRLKP, MDLX, AES-c, GLFPN, PFX, BKEPP.

From there, another 85 securities make up the remaining 69% of the preferred stash. Like Winemaker, I try to limit my preferreds to no more than $5,000 per parent company (many holdings are just $2,500 per issuer), but I do make a few exceptions.



Im not saying Moorebonds preferred portfolio is too big. But when I went over to his house to see the list of his preferreds, he pulled out a ledger dedicated only to preferreds. It accidentally fell out of my hands and broke my big toe.
 
Im not saying Moorebonds preferred portfolio is too big. But when I went over to his house to see the list of his preferreds, he pulled out a ledger dedicated only to preferreds. It accidentally fell out of my hands and broke my big toe.

My buy-and-hold list may be extensive...but if you look at your trading history over the past 12 months, you'll have far more transactions in more ticker symbols than my spreadsheet has holdings! :)
 
My buy-and-hold list may be extensive...but if you look at your trading history over the past 12 months, you'll have far more transactions in more ticker symbols than my spreadsheet has holdings! :)



Well, you being a young whippersnapper, do not know the sad tear of trails us fixed income pensioners have to face. I have to do these crumb picking trades just to keep food on the table and electricity flowing to my house!
 
Well, you being a young whippersnapper, do not know the sad tear of trails us fixed income pensioners have to face. I have to do these crumb picking trades just to keep food on the table and electricity flowing to my house!

You have electricity :confused: ..... ;)

I sold 150 shares of CBB-B @ %50.24 yesterday, only because I had too much of it.
 
You have electricity :confused: ..... ;)

I sold 150 shares of CBB-B @ %50.24 yesterday, only because I had too much of it.



Barely, ha! CBB preferred has been bouncing around a bit hasnt it. I bought an interesting quirky one today. 500 shares of SPLP-A at $22.60. A $25 par 6% cumulative. 20% of your shares get a mandatory $25 put on them in 3 years or less. The remaining 80% are mandatory callable in 9 years. This was issued to owners of a company they already owned 70% in and were buying them out with this preferred. Gabelli was the big majority owner of the remaining shares and gave this his blessing to take in lieu of the commons being confiscated. So its a 6.67% yield with $2.40 given back in 3 years and 9. Company is a K-1 issue. The shares going to market are the ones being sold by the people who got them on the buyout. There was no public offering.
For the curious only....
http://otcadventures.com/?p=1878
 
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