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

[Mulligan]

Those thinly traded Ute Preferreds are, indeed, very hard to get. Putting a AON order, unfortunately, makes it even less likely to fill.

I have had bids on AILNP open for weeks on end, renewing the bid when it expires, no special instructions, without bites.

So, I'm as poor a fisherman as you are.....

Looks like only Mulligan knows the right kind of bait to use. Gotta pick his brains a little......

I agree with Coolius, Sunset. I would never use AoN for preferreds. Get what you can when you can... Most of the times I bid for 100 to 200 shares. But sometimes you can get the damnedest amounts filled, especially with the $100 par ones... 22, 73, 56, 30 are examples are various partial fills. Some are just not available because no one is willing to sell. Then some sell in bunches and dry up immediately. BGLEI was an example for Coolius and I. Probably 100,000 shares traded within a week a few months ago, and then a month goes by without a single transaction.


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[Coolius]

I agree with Coolius, Sunset. I would never use AoN for preferreds. Get what you can when you can... Most of the times I bid for 100 to 200 shares. But sometimes you can get the damnedest amounts filled, especially with the $100 par ones... 22, 73, 56, 30 are examples are various partial fills. Some are just not available because no one is willing to sell. Then some sell in bunches and dry up immediately. BGLEI was an example for Coolius and I. Probably 100,000 shares traded within a week a few months ago, and then a month goes by without a single transaction.


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But be forewarned that having no AON could result in being sold so few shares that your trading commission kills any profit for maybe a long time.

For example, I had a 200 share bid open on a Ute preferred; I was sold 1 ( yes - one !! ) share. And broker charged me the usual $7 commission !! ARGH !!

Fortunately, I have good relationships with a particular client services manager, called him and he graciously comped me the commission.

So, I now have a line item in my portfolio that is only 1 share. This particular issue is not thinly traded as the ones we've mentioned, so am confident I can buy another 199 later. Today it dropped along with everything else, and is now 4 cents below what I got it for.

 

[Mulligan]

But be forewarned that having no AON could result in being sold so few shares that your trading commission kills any profit for maybe a long time.

For example, I had a 200 share bid open on a Ute preferred; I was sold 1 ( yes - one !! ) share. And broker charged me the usual $7 commission !! ARGH !!

Fortunately, I have good relationships with a particular client services manager, called him and he graciously comped me the commission.

So, I now have a line item in my portfolio that is only 1 share. This particular issue is not thinly traded as the ones we've mentioned, so am confident I can buy another 199 later. Today it dropped along with everything else, and is now 4 cents below what I got it for.

Where is your sense of adventure, Coolius? Sometimes in life you just have to let it all out and go for bust risking that $7 transaction loss.


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[Coolius]

Where is your sense of adventure, Coolius? Sometimes in life you just have to let it all out and go for bust risking that $7 transaction loss.


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A little testy today, eh? Betcha you had a bad day on the golf course this morning.....

'Cause I know you did OK in the market today.....

Talking about golf.....

A preacher and his friend were playing golf. The friend had a bad habit of cussing whenever he missed or fumbled a shot. His usual outburst would be " Dammit, missed the **** !! "

This went on for 9 holes, and the preacher's ears were getting severely disturbed. Finally, he told his friend that he had heard from God, that his cussing was offensive, and the next time he cussed, God would shoot a lightning bolt from heaven and zap him dead on the spot.

Thoroughly scared, the friend determined to keep his mouth shut.

Things went well until the 18th, when the final shot, a 10 foot putt for the friend curved around the hole and stopped right at its edge without dropping in.

This proved too much for the friend. " Dammit !! Missed the ****!! " he yelled.

At once a lightning bolt flashed down from the sky and struck the preacher dead.

A voice was heard from on high: " Dammit! Missed the **** !! "

 

[Mulligan]

[emoji23]...Good one!


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[Mulligan]

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

Well, Coolius, your sale didn't last long as many of them popped back up today. Of course mine didn't participate in todays upswing because mine never dropped to begin with! I did catch a small break as last month my HSA shut down so I was forced to sell all my preferrds that was there which was mostly WFC-L since Vanguard has a pitiful brokerage. Forced to sell at $1191 (missed $18.75 dividend) and was not happy. Just got my money today finally in new account and waded back in with a 5 share purchase at $1147. Down $2 already! Oh well, robust yield of 6.5 plus is just fine with me... Probably add 5 more soon before I dig back into the safety mine of Ute preferreds.


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[Coolius]

Well, Coolius, your sale didn't last long as many of them popped back up today. Of course mine didn't participate in todays upswing because mine never dropped to begin with! I did catch a small break as last month my HSA shut down so I was forced to sell all my preferrds that was there which was mostly WFC-L since Vanguard has a pitiful brokerage. Forced to sell at $1191 (missed $18.75 dividend) and was not happy. Just got my money today finally in new account and waded back in with a 5 share purchase at $1147. Down $2 already! Oh well, robust yield of 6.5 plus is just fine with me... Probably add 5 more soon before I dig back into the safety mine of Ute preferreds.


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Unfortunately, the bounce today did not cover the drops of yesterday for the majority of my holdings. The PSA preferreds I held came back about 20 cents, but dropped by 60-70 cents yesterday - so I'm still very much behind the curve.

Oh well, as I've said many times before, just gotta focus on the income stream and not the day-to-day fluctuations. PSA, for example, can be considered totally reliable. As with many others I hold. So that allows to sleep well at night.

Will be watching & waiting for the knee jerk tomorrow. No matter what the decision, I feel the market will knee jerk down. Dry powder primed and ready to go....

 

[Mulligan]

Unfortunately, the bounce today did not cover the drops of yesterday for the majority of my holdings. The PSA preferreds I held came back about 20 cents, but dropped by 60-70 cents yesterday - so I'm still very much behind the curve.

Oh well, as I've said many times before, just gotta focus on the income stream and not the day-to-day fluctuations. PSA, for example, can be considered totally reliable. As with many others I hold. So that allows to sleep well at night.

Will be watching & waiting for the knee jerk tomorrow. No matter what the decision, I feel the market will knee jerk down. Dry powder primed and ready to go....

The only way Im going to get what I want is a mini crash margin call, so whoever, has to dig deep into the vault and sell some of these little critters to raise some cash....


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[Mulligan]

Stepped out of my comfort zone with a few additional purchases. 200 shares of MNR-A (at $25.42 yesterday) a small warehouse reit deeply in bed with Fed Ex. and growing quickly with them. Never missed a common divi since 1968 inception, so the preferred yielding 7.5% should be very safe, the only risk is a call as its almost 5 years past call.
Bought my first adjustable preferred, Winemaker would be proud of me. 500 shares of GJP (Dominion Resources, a utility) at $20.30. A protection purchase for my longs. A safe Baa2 investment grade issue. An odd one as its a 3 month treasury rate with a 1.15% kicker, and 3% floor at the $25 par, so my yield is higher with the $20.30 purchase. I will ride this out until 2035 and get my mandatory call bonus. Since Dominion has already bought back 700k of the initial 1 million shares, who knows, they may buy me out earlier.


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[Coolius]

Stepped out of my comfort zone with a few additional purchases. 200 shares of MNR-A (at $25.42 yesterday) a small warehouse reit deeply in bed with Fed Ex. and growing quickly with them. Never missed a common divi since 1968 inception, so the preferred yielding 7.5% should be very safe, the only risk is a call as its almost 5 years past call.
Bought my first adjustable preferred, Winemaker would be proud of me. 500 shares of GJP (Dominion Resources, a utility) at $20.30. A protection purchase for my longs. A safe Baa2 investment grade issue. An odd one as its a 3 month treasury rate with a 1.15% kicker, and 3% floor at the $25 par, so my yield is higher with the $20.30 purchase. I will ride this out until 2035 and get my mandatory call bonus. Since Dominion has already bought back 700k of the initial 1 million shares, who knows, they may buy me out earlier.


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Hey, what's this with GJP ?

I thought your cast-in-concrete rule was a 6%+ yield !!

Did you just violate your own rules and leave your devoted followers out on a limb ?? Pulling the rug out from under their feet, changing direction 180 degrees with no advance warning - is your real name Dennis Gartman ??

Oh, how the mighty have fallen !!

 

[Winemaker]

One can offer the wineglass, but one doesn't have to drink. Or something like that!

 

[Mulligan]

Hey, what's this with GJP ?

I thought your cast-in-concrete rule was a 6%+ yield !!

Did you just violate your own rules and leave your devoted followers out on a limb ?? Pulling the rug out from under their feet, changing direction 180 degrees with no advance warning - is your real name Dennis Gartman ??

Oh, how the mighty have fallen !!

Well, Like Gartman my actions greatly influence markets....So I gotta get mine first! But don't worry, Coolius, my core Ute preferreds are safely sealed away in my vault. They are like gold to me.


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[Mulligan]

One can offer the wineglass, but one doesn't have to drink. Or something like that!

Yes, but you are at least put on the pants when you buy the higher yielding bank adjustable. I put the skirt on and buy the lower yielding Ute adjustable.


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[Coolius]

Well, Like Gartman my actions greatly influence markets....So I gotta get mine first! But don't worry, Coolius, my core Ute preferreds are safely sealed away in my vault. They are like gold to me.


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Like Gold, eh ?

Seen the long term chart of Gold lately ?? bye-bye !

 

[Mulligan]

Like Gold, eh ?

Seen the long term chart of Gold lately ??

Oopps, forgot to put 2011 in front of gold....


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[Golden sunsets]

300 shares of CNTHP traded today for $50.00. I had an order in for 200 at 51.65. What do you experts think happened here?

 

[Mulligan]

300 shares of CNTHP traded today for $50.00. I had an order in for 200 at 51.65. What do you experts think happened here?

I saw it happen...It was a pure dark pool transaction "off the books". Official ask price of $54.75 from same exchanges never moved, nor did any of the bids.... Somebody slide these shares to somebody else... In fact highest bid has actually increased to $52.50... Weird isnt it?


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[Coolius]

300 shares of CNTHP traded today for $50.00. I had an order in for 200 at 51.65. What do you experts think happened here?

I had a bid for 200 shares as well, at $52 even. That trade blew right past me & you. It must have been a broker to broker transaction, that was never published on any exchange, but got reported as a trade. happened at 9:49:05 am EST.

Makes me upset at the tricks these brokers & market makers play among themselves. Nobody in their sane mind would sell at $50 - the redemption value is $51.44.

It's always the little guys who get screwed....

 

[jim584672]

I think because it is on the Pink Sheets it trades differently. Pink Sheets are a dealer to dealer market, no direct transactions, everything has a dealer in front of it.

 

[Mulligan]

I think because it is on the Pink Sheets it trades differently. Pink Sheets are a dealer to dealer market, no direct transactions, everything has a dealer in front of it.

It just seems so odd....300 shares is not trying to push through a big transaction... Plenty of bids above $51.. Why push it through at $50? A slip up of market order would have made more money than this. I just dont understand why this would occur unless both sides (dealer to dealer or whoever) were in bed on it.


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[jim584672]

Makes no sense to me.

 

[Mulligan]

Makes no sense to me.

I wish I was offered the opportunity to buy them at $50 par. 6.58% yield investment grade and call price at $51.44... I would have taken another serving of that dish!


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[jim584672]

I had a 200 share bid in as well. Time to call the NASD?

 

[Mulligan]

I had a 200 share bid in as well. Time to call the NASD?

Ya, like they worry about us. Thank God for the limit button or we would just get bent over the table every time. You just got to get lucky. I was lucky, about 3 months ago while studying utilities I decided that this little utility (EDE) would get bought out by a big fish. So I bought 500 shares at $20.70 that yielded a 5.05% divi and just wait until it happens. Well Friday they announced they are looking for someone to buy them and stock keeps climbing everyday. Up 82 cents today on a down market and now trading at $27.50. Just got lucky...for time being.


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[RE2Boys]

Had a bid on CNTHP as well at $52. When I saw the trade I thought this was my lucky day but no execution.