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

[youbet]

Quote:

Originally Posted by capjak Friday after the market was closed so no opportunity to get out.

Thanks capjak. My irritation with Schwab has somewhat subsided since their lack of notification didn't actually cost me any money. But there still is nothing at Schwab.com when I go to the "research" page for AILLL. Nothing on Quantum either for that matter.

Well..... sigh..... I was hoping AILLL would go on forever. But, again, can't complain. It was a good 4+ year run for me.

[Winemaker]

Quote:

Originally Posted by Mulligan Winemaker, Thanks for update on price. I thought about buying 8 more but too embarrassed to call bond desk for a sub 10k purchase. I bought 12 under $1000 first day out. Should have bought 20. Oh well. $1023 with 5 yr call protection doesnt expose you too much to a loss, lol.. Come to think of it I shouldnt have been embarrassed to call in 8 if you did 5. And I am pretty sure you could buy me out and sell me into slavery. AILLL dropped hard quickly. I went opposite way for nickel stacking. Bought 1000 at $25.05 and 1000 at $25.06 on margin. Aint that crazy, huh...Should pay out about $25.27 March 29.

I don't like to go more than $5000 on any one issue. Yeah, I have more issues, but if something goes south, I'm not out much. However, I did vacuum up a bunch of of Hospitality type preferreds in my speculation account last spring, and I'm sitting pretty good there.

I rolled the dice with the Pennsylvania Real Estate Trust Preferred and the jury is out on that issue. I sold all my Ashford when they started south, and put my "moneyies" into PREIT-D. It has languished/floundered a bit, but the Ashford has come back nicely, if it is still the same issue, after the reorganization.

[Mulligan]

Quote:

Originally Posted by Winemaker I don't like to go more than $5000 on any one issue. Yeah, I have more issues, but if something goes south, I'm not out much. However, I did vacuum up a bunch of of Hospitality type preferreds in my speculation account last spring, and I'm sitting pretty good there. I rolled the dice with the Pennsylvania Real Estate Trust Preferred and the jury is out on that issue. I sold all my Ashford when they started south, and put my "moneyies" into PREIT-D. It has languished/floundered a bit, but the Ashford has come back nicely, if it is still the same issue, after the reorganization.

Yes...I remember now, makes sense...That is why it was 5 shares, and not just busting the piggy bank to buy. You will stick to $5k per issue even if your net worth passed Bezo’s.

[Winemaker]

Quote:

Originally Posted by Mulligan Yes...I remember now, makes sense...That is why it was 5 shares, and not just busting the piggy bank to buy. You will stick to $5k per issue even if your net worth passed Bezo’s.

You mean Bozo's, don't you?

[capjak]

Am I missing something why would someone pay 25.75 for AILLL today?

[aja8888]

Quote:

Originally Posted by capjak Am I missing something why would someone pay 25.75 for AILLL today?

I had a friend of mine call me yesterday asking if he should buy some @$25.26. He didn't know the call was announced. He is a pretty savvy investor. He thought there might have been some bad news, power wise and knew I had followed the issues.

[pb4uski]

Quote:

Originally Posted by capjak Am I missing something why would someone pay 25.75 for AILLL today?

Clueless? Not paying attention?

If not for this forum and innovativeincomeinvestor if I held AILLL I would have never known. Sounds like only Fidelity sent a call notice to holders of AILLL and that was long after that one sentence "announcement" buried in another filing.

I can see someone who has had it on their watchlist for a long time getting a notification that it has slipped below their target price and acting on it without thinking about whether it has been called. No mention of the call as of right now on quantumonline or innovativeincomeinvestor. I could see that I would be fooled... price is below target and check those two and no mention of a call.

[pb4uski]

Quote:

Originally Posted by Mulligan ... Aint that crazy, huh...Should pay out about $25.27 March 29.

So why would someone bid $25.38? or ask $25.45... trying to snag a sucker?

[bobandsherry]

Guess lesson learned on thinly traded issues trading well over par, you have to count on your own ability to stay up on SEC filings and read through them when they are published. AILNP is still trading at $105 today. Maybe $1.25 in dividend to be paid. I'd guess some people had a GTC that they forgot about and this is now buying up the "discounted" shares.

[youbet]

Neither Quantum or Schwab gives a clue about the "special div" that splp-a paid yesterday along with the regular div. Anyone know what that was?

[brokrken]

Quote:

Originally Posted by youbet Neither Quantum or Schwab gives a clue about the "special div" that splp-a paid yesterday along with the regular div. Anyone know what that was?

Not sure why, but they split the divy into two parts, but if you add them up, it equals the 6% coupon due that quarter.

[youbet]

Quote:

Originally Posted by brokrken Not sure why, but they split the divy into two parts, but if you add them up, it equals the 6% coupon due that quarter.

Thanks brokrken. That's what it looked like to me. But after this AILLL surprise (at least to me), when I saw the words "Special Dividend" attached to the SPLP-A payout I figured maybe I'd forgotten how to pay attention and am gettin' too old for this investin' stuff..........

[youbet]

This is the only mention of the AILLL call on Seeking Alpha I could find.

Quote:

AILLL is defunct

[Mulligan]

Quote:

Originally Posted by brokrken Not sure why, but they split the divy into two parts, but if you add them up, it equals the 6% coupon due that quarter.

Duh, I didnt even notice. Mine was unequally split up also. No mention of special though. Just partnership distribution. Remember this is not a QDI but K-1 income.
I bought 2000 shares of AILLL at $25.05 and .06. Sold half today at $25.38. Didnt get best price but more than I was planning on..
Yes, people have got screwed up...This is the “good old days” and I forgot dangit...See 7-8 years ago more of these old illiquids were redeemed just like this one was. No one knew what was going on, sometimes even selling the wrong sister issues. Those were lovely free money plays that was stealing candy from a baby... Maybe I can do better on my last 1000 to sell.

[pb4uski]

Well done Mulligan! Easy money for you!

[Mulligan]

Quote:

Originally Posted by pb4uski Well done Mulligan! Easy money for you!

PB, you wanna know how crazy I was? 1000 of those shares I bought on margin. Never done that before, lol.
I was thinking about that SPLP two payments. There actually was an SPLP-A and SPLP-T for a short period before T was folded into A. Maybe they are still segregated in the backroom still.

[brokrken]

Quote:

Originally Posted by Mulligan I was thinking about that SPLP two payments. There actually was an SPLP-A and SPLP-T for a short period before T was folded into A. Maybe they are still segregated in the backroom still.

I was thinking the same thing, but back in 2019 (after the A/T combo), Q1 was split, but Q2-Q4 were not. I can't figure out the rhyme or reason.

[Winemaker]

Quote:

Originally Posted by youbet Neither Quantum or Schwab gives a clue about the "special div" that splp-a paid yesterday along with the regular div. Anyone know what that was?

My Fidelity Account shows just ordinary dividend paid, nothing special.

[Sunset]

Quote:

Originally Posted by Winemaker My Fidelity Account shows just ordinary dividend paid, nothing special.

For me, it's 2 separate payments amounting to 37.5 cents per share in total.

[youbet]

Finally! This morning my Schwab account shows AILLL as being called.

Quote:

AMEREN ILLIN 6.625% PFD **CALLED** @PAR EFF: 03/29/2021

Picked my 800 shares up in Feb, 2016 around a buck over PAR, so not a bad run. Still, disappointed to see it called.