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

[Coolius]

Well, easy come easy go...

BGLEN was down $4.60 today.... over $1,000 lost...

I was thinking that it was going up and going to stay, but alas, not...


No big deal... I am still up a few dollars and I do not find anything saying it was called.... so just back to where I was when bought...

The last price of $106 was way too high to be realistic and cannot be sustained, so in a way I am relieved it has come down to a more reasonable level.

I doubt BGLEN will be called anytime soon; they have not yet disbursed the cash from the BGLEI/BGLEP call, and will need to replenish their coffers before calling the next tranche. If they had the money they would have called all 4 issues at the same time.

If I had to hazard a guess at when a call could come, I'd go for sometime in early 2017.

 

[Mulligan]

The last price of $106 was way too high to be realistic and cannot be sustained, so in a way I am relieved it has come down to a more reasonable level.

I doubt BGLEN will be called anytime soon; they have not yet disbursed the cash from the BGLEI/BGLEP call, and will need to replenish their coffers before calling the next tranche. If they had the money they would have called all 4 issues at the same time.

If I had to hazard a guess at when a call could come, I'd go for sometime in early 2017.

Im trying for one other issue... Gave me 15 shares on a 150 bid...Idiots..But Im trying again tomm. If not I will continue buying more of that at that price. No lose price... I wish it would drop a dollar more and I would sell everything I could get a fair price on load up solely on that issue.


Sent from my iPad using Tapatalk

 

[Slow But Steady]

Those doggone partial fills... I see that one share of CVB changed hands today at $10.93. I would hate to pay a commission on that trade.

 

[Mulligan]

Those doggone partial fills... I see that one share of CVB changed hands today at $10.93. I would hate to pay a commission on that trade.

Well I have been a proud owner of one share of HE-U myself for many months now! I have been rolling over my portfolio and emptying the cash vault... Will have to post what I have after I look at it all, ha!


Sent from my iPad using Tapatalk

 

[Golden sunsets]

Well I have been a proud owner of one share of HE-U myself for many months now! I have been rolling over my portfolio and emptying the cash vault... Will have to post what I have after I look at it all, ha! Sent from my iPad using Tapatalk

Mul-Are you a churner You need another hobby��

 

[Coolius]

If the vote for Brexit is to remain, the banks will likely benefit, as such WFC-L is still an attractive buy at a 5.95% yield with no call risk.

Especially compared to the yield of the other outstanding WFC preferreds, which are around the low 5% level.

However, as I bought most of my shares in the $1,195 range, it is difficult for me to buy more shares at present price - so I continue to struggle with indecision.

At the same time, there is no intention to sell what I have.

Wonder if other WFC-L owners on the board have similar thoughts?

 

[Golden sunsets]

Coolius - I bought WFC-L at 1164 for our account and 1170 for my Mom's. Small amounts - only 10 shares and 11 shares, respectively. I tend to wade in slowly. I don't intend to sell and might buy more at those levels. 1259 seems too high.

 

[jim584672]

I chased WFC-L at $1,205 when it was moving up. I thought that was way overpriced when I did it. You never can tell. Wish it would come down again.

 

[Coolius]

Coolius - I bought WFC-L at 1164 for our account and 1170 for my Mom's. Small amounts - only 10 shares and 11 shares, respectively. I tend to wade in slowly. I don't intend to sell and might buy more at those levels. 1259 seems too high.

Golden Sunsets, I, too, hope WFC-L will get back below $1,200. But that would be a 6.25% yield for a top quality bank preferred, especially with the ultra-low conversion call risk, and QDI dividends - and might not happen for a long time.

Congrats on buying your shares at a great price; my cost basis is high because I started buying at $1,200 in June 2015, and watched it go down, down, down to $1,140. That was a difficult time. On the other hand, I have enjoyed about 4 dividends since purchase.

Yeah, a tough decision whether to buy more or not, at these levels.

 

[capjak]

If the vote for Brexit is to remain, the banks will likely benefit, as such WFC-L is still an attractive buy at a 5.95% yield with no call risk.

Especially compared to the yield of the other outstanding WFC preferreds, which are around the low 5% level.

However, as I bought most of my shares in the $1,195 range, it is difficult for me to buy more shares at present price - so I continue to struggle with indecision.

At the same time, there is no intention to sell what I have.

Wonder if other WFC-L owners on the board have similar thoughts?

I have 25@ $1167 and can not force myself to buy more above 1200, I was thinking these preferred would go down slightly or stay even, had no idea they were growth stocks....

 

[Mulligan]

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

Mul-Are you a churner You need another hobby��

I think my hobbies are part of the problem, Golden. I get up early to play golf and tennis and am tired when I am done so I sit in my chair and rest and play with my stocks.
In fact I made an aggressive move yesterday and today...Bought 500 shares of PVTBP. A TRUP from PrivateBank (PVTB). A juicy 10% par yield. They called half of issue in 2013 and have left the rest... These TRUPs are very special to grandfathered banks under $15 Billion. They get to right off the interest debt and still count as Tier 1 capital. Their tax rate was around 37% so the savings is significant on the par yield. Management said last conference call they have no current plans to do anything with it. Looking at chart there appears opportunity to snag a few of those juicy 62.5 cent dividends and then dine and dash...
Also have been buying recently more of my biggest issue AILLL... Huge cap ex spending, highly profitable, cash flow negative....prefect recipe not to mess with a tiny insignificant issue. And calling and reissuing a new one is a ridiculous thought. Besides, they use collective yield of the entire preferred series when making rate case. They show collectively as under par and "cheap capital" so nothing is happening here... More 6% coming my way...
Did buy some HAWEL under call price also...and SSWN too recently.
Recently sold many that were some nice cap gains so my lineup is a bit different now...
AILLL/AILNP (huge) BGLEN (fairly huge, too), CTWSO, SIVBO, OSBCP, NGHCZ, SSWN, EGYKP, UEPCO, PVTBP, and HAWEL.


Sent from my iPad using Tapatalk

 

[Slow But Steady]

Bought 500 shares of PVTBP. A TRUP from PrivateBank (PVTB). A juicy 10% par yield. They called half of issue in 2013 and have left the rest... These TRUPs are very special to grandfathered banks under $15 Billion. They get to right off the interest debt and still count as Tier 1 capital.

I think you said that SIVBO is the same situation. Is that right?

How can you track down these kinds of situations?

 

[Mulligan]

I think you said that SIVBO is the same situation. Is that right?

How can you track down these kinds of situations?

Yes SIVBO, OSBCP, and PVTBP are in exact same situations with being able to allow trust preferreds to be treated as Tier 1 cap despite being in essence a bond. I dug deeply and slowly into the Quantumonline table format in a subsection of the website page. I looked under section of "trust preferreds".


Sent from my iPad using Tapatalk

 

[Slow But Steady]

Yes SIVBO, OSBCP, and PVTBP are in exact same situations with being able to allow trust preferreds to be treated as Tier 1 cap despite being in essence a bond. I dug deeply and slowly into the Quantumonline table format in a subsection of the website page. I looked under section of "trust preferreds".

Sent from my iPad using Tapatalk

Thanks!

I bought a few more SIVBO today. I will have to dig in to Quantumonline and see what else I can find. Probably after I retire, though. I have three more weeks.

 

[Running_Man]

I have 25@ $1167 and can not force myself to buy more above 1200, I was thinking these preferred would go down slightly or stay even, had no idea they were growth stocks....

You have in WFC-L a perpetual bond paying 6 percent but yet with a favorable 15% tax rate, long term the cap is 1300 on price if WFC were to ever take off and soar and that is the buyout price so under 1300 you get to keep the 6 percent more or less. In the present interest rate enviroment it is difficult to get a high quality corporation paying a dividend at such a rate. I am shocked it is not over 1300

 

[Golden sunsets]

What do you gurus expect today? I have a couple of limit orders in on Preferreds. Do you think that prices will actually increase, as rates will stay low even longer, or is there a possibility that prices will fall based on perceptions of the impacts of world economic turmoil?

 

[Running_Man]

I would suggest one keep an open mind, this is not a major panic at all it is an orderly panic and in general most of the talking is about what a great buy point this is. Andrew Sorkin on CNBC on one segment talked about how he personally thought this was going to be a big economic mistake and then the next segment said he thought this fall is a great buy point. In general the interest rates are less likely to be increased by Central banks so preferred should gain in price in general, some partially convertible will have price pressures if the underlying stocks drop.

 

[MooreBonds]

You have in WFC-L a perpetual bond paying 6 percent but yet with a favorable 15% tax rate, long term the cap is 1300 on price if WFC were to ever take off and soar and that is the buyout price so under 1300 you get to keep the 6 percent more or less. In the present interest rate enviroment it is difficult to get a high quality corporation paying a dividend at such a rate. I am shocked it is not over 1300

I agree. Put in a buy order for a piddly 2 shares at $1250 this morning. No action. Just decided to bite the bullet and move it up to hit the ask at $1258. Filled....at $1245!

Funny how my GTC order at $1250 sits there for 20 mins with nothing...then the millisecond I bump up my bid to equal the ask at $1258, it suddenly gets filled at $1245!?! Don't get it....

 

[Sunset]

It does seem odd, my only guess would be that changing the price caused the order to be sent to a different "place" where they had a sell order sitting.

 

[Coolius]

I bought back MH-PC, which I had sold last week, for a small gain round-trip.

As expected, little to zero movement in our Ute Preferreds. No panicky sellers dumping shares, for sure. That;s good, shows they are in strong hands.

A trifle disappointed that BGLEN did not move whatsoever - I was hoping this plus the call scare would convince nervous folks to dump. Was ready to scoop some up at $101 or less. Apparently BGLEN is also in strong hands.

 

[Texas Proud]

I bought back MH-PC, which I had sold last week, for a small gain round-trip.

As expected, little to zero movement in our Ute Preferreds. No panicky sellers dumping shares, for sure. That;s good, shows they are in strong hands.

A trifle disappointed that BGLEN did not move whatsoever - I was hoping this plus the call scare would convince nervous folks to dump. Was ready to scoop some up at $101 or less. Apparently BGLEN is also in strong hands.

Heck, it was trading up yesterday.... so I put in a sell order at 105 hoping to sell a few.... then buy back at $101 when it drops again...


So far, no takers...

 

[Mulligan]

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

Guys, this is why I am in what I own... A total snoozefest...In fact I have made money today...When you buy safe illiquids you keep the idiots out, the fund managers who have to sell, and the "hot and cold" money flippers... The last outpost left of the "Widows and Orphans" securities... I have 5 issues that have had a CUMULATIVE TOTAL amount of 34 shares traded... Boring day...


Sent from my iPad using Tapatalk

 

[Mulligan]

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

Well, I did buy something.... 300 shares of PFK... Punishment for buying 500 shares of PVTBP yesterday and day before. Although it has made me over $250 in past 2 days, I like "balance".


Sent from my iPad using Tapatalk

 

[Slow But Steady]

Well, I did buy something.... 300 shares of PFK... Punishment for buying 500 shares of PVTBP yesterday and day before. Although it has made me over $250 in past 2 days, I like "balance".

Sent from my iPad using Tapatalk

For a floating rate issue, how about C-N?

It's not rated like PFK, but isn't C "too big to fail?"

The divi is quite a bit fatter than PFK.

 

[Mulligan]

Personally, I do not buy everything based on yield alone, thus why I got a 1000 shares of CTWSO a few weeks back... I have my fill of banks...No more... I have 3 TRUPs already. The key here on PFK for me, is safety and more important it is a mandatory call in 2018, but not callable until then either.....This is a very safe infield single.


Sent from my iPad using Tapatalk