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

[jriemerm]

Thanks for your replies!

I'm interested in connection with recent news regarding a new, apparently much safer safer type of nuclear power plant Bill Gates and Warren Buffet are going to be building in Wyoming, which involves Pacificorp.

 

[Mulligan]

Thanks for your replies!



I'm interested in connection with recent news regarding a new, apparently much safer safer type of nuclear power plant Bill Gates and Warren Buffet are going to be building in Wyoming, which involves Pacificorp.

Keep in mind any benefits that may occur to the company over time will not show up in either of these illiquid preferreds. They already have IG credit rating. Also be aware PacifiCorp has some major legal issues involving Oregon fires.

 

[Born2Fish]

QRTEP...flip or hold?

Priced pretty high now.

 

[Born2Fish]

QRTEP...flip or hold?

Priced pretty high now.

Too late - I flipped. Recently went ex-div, was up almost 10% from cost basis.

 

[Sunset]

Too late - I flipped. Recently went ex-div, was up almost 10% from cost basis.

Well that was quick !!

 

[aja8888]

I'm holding...

 

[Coolius]

I'm holding onto QTREP as well. Bought just under par. If it gets down to the low 100's I may add more.

 

[Born2Fish]

Well that was quick !!

I sold 3/4 of my QRTEP holdings. Will add if it falls back near 100.

 

[brokrken]

There are so few opportunities out there, so I'm holding QRTEP. I've had a few flips get away from recently, so I'm not taking any chances

 

[Born2Fish]

There are so few opportunities out there, so I'm holding QRTEP. I've had a few flips get away from recently, so I'm not taking any chances

I'm holding preferreds in my tIRA. I figure if I shave $2/share with a GTC Buy order it's worth it.

I like QRTEP.

(Hopefully I don't get stuck.)

 

[Winemaker]

New York Mortgage Trust PRD-C (NYMTO) full call 7/30/21!

 

[bobandsherry]

Watford Intends to De-List and De-Register its Cumulative Redeemable Preference Shares (Nasdaq: WTREP) Following Merger

https://www.globenewswire.com/news-...nce-Shares-Nasdaq-WTREP-Following-Merger.html

 

[DR1959]

At what price would you consider selling a high preferred.
I own PMT-PR-B, bought in at $24.75, trading at $27.46.
Trying to decide if I should take the almost 3 points and run or keep collecting the div.
Call date is still 3 years out, but dividend is $2 a year now.

Thx

 

[aja8888]

At what price would you consider selling a high preferred.
I own PMT-PR-B, bought in at $24.75, trading at $27.46.
Trying to decide if I should take the almost 3 points and run or keep collecting the div.
Call date is still 3 years out, but dividend is $2 a year now.

Thx

That's a hard one to guess at. But we know the price will start to fall towards it's par price ($25?) as time goes on. I have a few just like that.

If you sold now, what would you do with the funds is really the question as you will be giving up the dividend?

 

[DR1959]

That's a hard one to guess at. But we know the price will start to fall towards it's par price ($25?) as time goes on. I have a few just like that.

If you sold now, what would you do with the funds is really the question as you will be giving up the dividend?

Throw it into something else, or even buy it back on a dip.
Hard decision because you know it can't keep going up and eventually slips to $25, but so hard to know when that drop starts. I have high yield bonds in the same boat, I know they will drop to par, but right now paying 7% is nice to collect.

 

[pb4uski]

At what price would you consider selling a high preferred.
I own PMT-PR-B, bought in at $24.75, trading at $27.46.
Trying to decide if I should take the almost 3 points and run or keep collecting the div.
Call date is still 3 years out, but dividend is $2 a year now.

Thx

If you didn't already own it would you be interested in buying it at $27.46... 7.25% yield and ~4.48% YTC by my calculations?

I'm getting called out so often these days and am so busy trying to find suitable replacements that I don't have time to assess whether I should sell or swap out my highly appreciated positions... besides, what would I reinvest in?

 

[DR1959]

I would never pay over $26 for a $25 par prefrered.
But if I applied that logic to most of my stocks I would be selling.
Preferreds are different than common as they have a finite life with a set value.
Price appreciation is a rare treat, just noone knows why it appreciates or why it will suddenly start to drop. Has to be a formula in there.

 

[brokrken]

I would never pay over $26 for a $25 par prefrered.
But if I applied that logic to most of my stocks I would be selling.
Preferreds are different than common as they have a finite life with a set value.
Price appreciation is a rare treat, just noone knows why it appreciates or why it will suddenly start to drop. Has to be a formula in there.

Some preferreds are perpetual or have extremely long maturities, so being over par wouldn’t matter much unless they were near call. Also, YTW is really all that matters when evaluating them, the price is irrelevant. And price appreciation typically, though not always, will react the same as bonds do when interest rates move.

 

[Mulligan]

Some preferreds are perpetual or have extremely long maturities, so being over par wouldn’t matter much unless they were near call. Also, YTW is really all that matters when evaluating them, the price is irrelevant. And price appreciation typically, though not always, will react the same as bonds do when interest rates move.

I bought SRSCF a few days ago at $26.95 and more at $27.05 and already flipped most for a quick buck a share gain. Market has gone crazy and been some great quick spike flips in many issues. If you are looking for some yield chase and near par, consider researching debt SBBA right at par for 7% yield, and TECTP for 9% QDI yield just under $10 par.

 

[bobandsherry]

I don't know how many holding MDLY and it's Sr Notes, but while it's been expected but according to Quantum it's official that distribution suspended on MDLQ and MDLX. Both have taken a beating since it was announced yesterday. Both are now down 50% from Monday's open. By comparison, the common shares down only 15%.

View attachment 37959

It was just a matter of time..... MDLY now filed for bankruptcy. NYSE reacted immediately to delist along with the unsecured senior notes (MDLQ and MDLX). Those left holding the bag can get in line to pick up some possible crumbs.

https://seekingalpha.com/news/37136...t-stock-after-medley-llc-files-for-chapter-11

https://app.quotemedia.com/data/dow...&formType=8-K&dateFiled=2021-07-07&CK=1611110

 

[Mulligan]

It was just a matter of time..... MDLY now filed for bankruptcy. NYSE reacted immediately to delist along with the unsecured senior notes (MDLQ and MDLX). Those left holding the bag can get in line to pick up some possible crumbs.

https://seekingalpha.com/news/37136...t-stock-after-medley-llc-files-for-chapter-11

https://app.quotemedia.com/data/dow...&formType=8-K&dateFiled=2021-07-07&CK=1611110

Glad I never got invited to that party. Some Seeking Alpha pumper writers liked it though back in the day.

 

[brokrken]

PPX got called yesterday. I somehow missed that announcement. That's 3 in the last 2 weeks, along with DTJ and ATCO-G.

Cash pile is growing

 

[DR1959]

VER.PR.F is being called.

 

[brokrken]

Did anyone else have PPX called? I received the par value, but not the accrued interest. Anyone else have this happen?

 

[bobandsherry]

Hopefully no one holding ALIN-A, ALIN-B or ALIN-E, saw these had a trading halt earlier today. I took a look and saw these drop 60%, from $25 to under $10.