Preferred Stock Investing-The Good , The Bad and The In Between 2021

[bobandsherry]

Quote:

Originally Posted by Mulligan Hang on until 2031 Winemaker and if they are still in business you are guaranteed to get your $100 back!

As they say, a penny saved is a penny earned.

[Winemaker]

Quote:

Originally Posted by Mulligan Hang on until 2031 Winemaker and if they are still in business you are guaranteed to get your $100 back!

It's only money! And enough for a bottle of 2 buck Chuck, if I ever had to stoop that low!

[Mulligan]

Quote:

Originally Posted by Winemaker It's only money! And enough for a bottle of 2 buck Chuck, if I ever had to stoop that low!

Winemaker, as I type its crawled back to $100.00 even..Hurry quick...Sell! Sell!

[Winemaker]

Quote:

Originally Posted by Mulligan Winemaker, as I type its crawled back to $100.00 even..Hurry quick...Sell! Sell!

Yeah, I put another buy order in last night at $99.90 and it opened higher today, but they also announced the divvy today so it most likely caused a bump.

And you know that I'm a buy and hold guy, so even if it really pops, I'll have it to 2031. I don't have the patience to be a trader.

[Mulligan]

Quote:

Originally Posted by Winemaker Yeah, I put another buy order in last night at $99.90 and it opened higher today, but they also announced the divvy today so it most likely caused a bump. And you know that I'm a buy and hold guy, so even if it really pops, I'll have it to 2031. I don't have the patience to be a trader.

I have played with this one some, but I will always have at least 25k in this one..The terms and payout are too good. Now if QVC starts going into the crapper I will need to reconsider the plan!

[youbet]

I'm a few days late with this, but here are my current holdings......

CHCSM
CHSCL
CNLPL
CNTHP
AILLL
SLMNP
MNR-C
SPLP-A

Any thoughts?

[Winemaker]

Quote:

Originally Posted by Mulligan Winemaker, as I type its crawled back to $100.00 even..Hurry quick...Sell! Sell!

It was up to $100.43 today! Now, for each lot, I'm up $45, now that's my entry point for a decent red wine, if I would ever have the urge to buy one.

[aja8888]

Quote:

Originally Posted by Winemaker It was up to $100.43 today! Now, for each lot, I'm up $45, now that's my entry point for a decent red wine, if I would ever have the urge to buy one.

Winemaker.....think about this....just annualize the % gain you just made over the short period of holding. I'll bet it's pretty high! That alone should be the driving force for the sale of the stock and then the expensive wine is totally justified!

[Coolius]

Quote:

Originally Posted by Winemaker It was up to $100.43 today! Now, for each lot, I'm up $45, now that's my entry point for a decent red wine, if I would ever have the urge to buy one.

Bought QRTEP at around the same time as Winemaker; paid $99.98. Doubled my holding.



Rising rates doing some gut punches to my portfolio. At least the income stream is not affected.

[Winemaker]

Quote:

Originally Posted by aja8888 Winemaker.....think about this....just annualize the % gain you just made over the short period of holding. I'll bet it's pretty high! That alone should be the driving force for the sale of the stock and then the expensive wine is totally justified!

I like your way of thinking, aja! Any justification to BTD on wine/booze is right up my alley!

[Mulligan]

Quote:

Originally Posted by youbet I'm a few days late with this, but here are my current holdings...... CHCSM CHSCL CNLPL CNTHP AILLL SLMNP MNR-C SPLP-A Any thoughts?

Those are solid plays, Youbet. Some may be a bit too solid being the CLP and AILLL are way over par. But as you know as long as they dont get called they will trade at a solid premium in this interest rate environment. SPLP-A is the weak link in safety but its certainly reasonable risk and a nice counter balance to the ones will over par

[Mulligan]

Quote:

Originally Posted by Winemaker It was up to $100.43 today! Now, for each lot, I'm up $45, now that's my entry point for a decent red wine, if I would ever have the urge to buy one.

Now since a few of us have this issue. Give your wives a credit card, turn the tv to the QVC channel and tell them to go to work!

[brokrken]

Quote:

Originally Posted by Mulligan SPLP-A is the weak link in safety but its certainly reasonable risk and a nice counter balance to the ones will over par

Unless they go back to paying the divy in shares

[Mulligan]

Quote:

Originally Posted by brokrken Unless they go back to paying the divy in shares

Yes, but didnt they just do that one quarter last year during Covid peak?
Bottom line they are not as safe as the others, but none of his others have a YTM (or YTC) at 10.50% plus like this one has with a 5 year term duration.
I just saw yesterday a SPLP board member was buying them last week, and owns 30,000k of the preferred now plus 70k of the common. Interesting he was buying the preferred.
I decided yesterday to get in at $20.71 for my high risk bucket.

[Freedom56]

It looks like we are at the beginning of another sell-off of bonds and preferred stocks. Bond funds such as BND and LQD are trading below pre-pandemic levels despite the current vs past treasury yields and lower current distributions from those funds. My individual bonds are trading well above pre-pandemic levels. So much for the theory that bond funds adjust for interest rates just like individual bonds.

I'm looking to scoop up some JPM-G and JPM-H (both past their call dates) if they drop below par and JPM-C, JPM-D, COF-H when they drop well below par.

[Sunset]

Quote:

Originally Posted by Freedom56 It looks like we are at the beginning of another sell-off of bonds and preferred. Bond funds such as BND and LQD are trading below pre-pandemic levels despite the current vs past treasury yields and lower current distributions from those funds. My individual bonds are trading well above pre-pandemic levels. So much for the theory that bond funds adjust for interest rates just like individual bonds. I'm looking to scop up some JPM-G and JPM-H (both past their call dates) if they drop below par and JPM-C, JPM-D, COF-H when they drop well below par.

Yes, VERY ANNOYING.... not such a safe choice..

[Mulligan]

Quote:

Originally Posted by Freedom56 It looks like we are at the beginning of another sell-off of bonds and preferred stocks. Bond funds such as BND and LQD are trading below pre-pandemic levels despite the current vs past treasury yields and lower current distributions from those funds. My individual bonds are trading well above pre-pandemic levels. So much for the theory that bond funds adjust for interest rates just like individual bonds. I'm looking to scoop up some JPM-G and JPM-H (both past their call dates) if they drop below par and JPM-C, JPM-D, COF-H when they drop well below par.

If your in cash waiting may bring some deals. I keep fighting and moving around. Buying heavily into past call anchored issues from 2% 10 year era, and some term preferreds. They arent as exposed and acting better. The low yield IG liquids are the ones most exposed now.

[Freedom56]

Quote:

Originally Posted by Mulligan If your in cash waiting may bring some deals. I keep fighting and moving around. Buying heavily into past call anchored issues from 2% 10 year era, and some term preferreds. They arent as exposed and acting better. The low yield IG liquids are the ones most exposed now.

I have a lot of cash waiting on the sidelines. I am looking at corporate notes with 1- 3 years remaining such as some of the one's I picked up last March:

Seagate Technology March 2022 4.25% notes CUSIP 81180WAV3 (bought at $96.21 last March)

Seagate Technology March 2024 4.875 Notes CUSIP 81180WAT8 (bought at $93.70 last March).

Centurylink April 2024 7.5% Notes CUSIP 156700BA3 (bought at $96.61 average cost last March and prior to)

Qwest Dec 2021 6.875 Notes CUSIP 74913GAX3 (bought at 97.30 last March)


The market has become too irrational. We have nearly bankrupt companies rallying to absurd market capitalization based on some promoters on Reddit. It was bad prior to the Dotcom bubble, but this is far worse. I will start putting limit orders below par on the corporate notes above if the market gets into a panic sell mode.

[brokrken]

Quote:

Originally Posted by Mulligan Yes, but didnt they just do that one quarter last year during Covid peak? Bottom line they are not as safe as the others, but none of his others have a YTM (or YTC) at 10.50% plus like this one has with a 5 year term duration. I just saw yesterday a SPLP board member was buying them last week, and owns 30,000k of the preferred now plus 70k of the common. Interesting he was buying the preferred. I decided yesterday to get in at $20.71 for my high risk bucket.

Yep, they only did it that once.

[Winemaker]

I cannot find the article I read, but recently Steel Partners was increasing their stake in a company that had great forward carryover tax losses, perhaps even a complete takeover. The last acquisition they made was with the SPLP shares instead of cash, and that created a buying opportunity when those stockholders dumped their newly acquired shares. I was a buyer then and still hold them.