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

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Need to state that, no, I was not, and am not, p*ssed. :LOL:


I posted in SI as I tend to frequent it and the Innovative site more often than this one.


I bought only 5 shares on the dip, I have a full position already and didn't want too heavy a weighting despite its stellar attributes.


Many of my Preferreds are still being hit, guess it's Ma & Pa year end tax loss selling, perhaps. Hate to see a stock go down by 1.5% the day before its XD of 1.5% - what in the world prompts folks to sell at such times ? :facepalm:
 
Coolius said:
Need to state that, no, I was not, and am not, p*ssed. :LOL:


I posted in SI as I tend to frequent it and the Innovative site more often than this one.


I bought only 5 shares on the dip, I have a full position already and didn't want too heavy a weighting despite its stellar attributes.


Many of my Preferreds are still being hit, guess it's Ma & Pa year end tax loss selling, perhaps. Hate to see a stock go down by 1.5% the day before its XD of 1.5% - what in the world prompts folks to sell at such times ? :facepalm:
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I hope ya know I was just joking, didn't really think you were P'd. I actually had one preferred that held it's high for the Ex-D date. I was like, OK, sold it off. Got the div and gain. It actually held there for another day. It's down now back at par. So perhaps time to rinse and repeat.

NSS is Ex-D tomorrow. It's been beat up and it didn't even move today. OK, it did, down a penny despite the market up. Guess I'll pocket the 48cents/sh for the few shares I kept and see where it goes from here. As Mulligan has mentioned several times, AILLL just seems to hold steady regardless of what's happening, thought it's off it's 52 week high of almost $28 (and that def isn't where I got in - LOL). ALLY-A is holding pretty good too. In hind sight, glad I sold off the NSS and dumped into ALLY-A. While initially I was trading for a slight drop in the return, it's paid off so far. Now the question is, is NSS worth the gamble at $23.50 w/11.7% yield.

Def hasn't been boring lately.
 
Now that I am setting my investments for INCOME after selling quite a bit of my ETF's and mutual funds over the last 45 days, I loaded up on preferreds with Muls's recommendations.

I bought about 7 or so and all are from the one's talked about here. These are not for flipping, but to generate a slice of the income I will need going forward. I just can't take a high percentage of equity risks at my age (75). So it looks like I am one of the members of this thread, like it or not! :D
 
aja8888 said:
Now that I am setting my investments for INCOME after selling quite a bit of my ETF's and mutual funds over the last 45 days, I loaded up on preferreds with Muls's recommendations.

I bought about 7 or so and all are from the one's talked about here. These are not for flipping, but to generate a slice of the income I will need going forward. I just can't take a high percentage of equity risks at my age (75). So it looks like I am one of the members of this thread, like it or not! :D
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Hey, welcome aj8888 ! Now you are a fully accredited, card carrying member of the Preferred Stock thread. Congratulations!! :greetings10:


I suspect you'll find it to be more pleasant here than expected, and steady income in our later years counts for a lot of comfort food.


My portfolio NAV has suffered some grievous blows since October 1st, but income has not changed; in fact since I picked up some stuff at good prices ( like MTB-, AILLL etc ) income is now higher going into the new year.


Here's wishing everyone on the thread the best of success and gain in 2019.
 
bobandsherry said:
I hope ya know I was just joking, didn't really think you were P'd. I actually had one preferred that held it's high for the Ex-D date. I was like, OK, sold it off. Got the div and gain. It actually held there for another day. It's down now back at par. So perhaps time to rinse and repeat.



NSS is Ex-D tomorrow. It's been beat up and it didn't even move today. OK, it did, down a penny despite the market up. Guess I'll pocket the 48cents/sh for the few shares I kept and see where it goes from here. As Mulligan has mentioned several times, AILLL just seems to hold steady regardless of what's happening, thought it's off it's 52 week high of almost $28 (and that def isn't where I got in - LOL). ALLY-A is holding pretty good too. In hind sight, glad I sold off the NSS and dumped into ALLY-A. While initially I was trading for a slight drop in the return, it's paid off so far. Now the question is, is NSS worth the gamble at $23.50 w/11.7% yield.



Def hasn't been boring lately.
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Bob, you and Aja should join those two forums with Coolius and I. Good people just like here.... All with various styles and experiences ranging from grizzled veterans to newbees wanting to learn more...
I just lost my nerve with NSS. More disappointed in not being disciplined to sell when oil broke $50 than the actual loss itself. Trading history showed conclusively it would drop at sub $50...I tried to buy the old IEH that now trades on bond market since it got delisted. But they were trying to rip me off. I saw last trade at $23.25 and bond desk said I would have to pay close to par...I wasnt falling for that.
No trades today and its going to get harder to as I have wormed myself into issues at price points I dont want to let go of, as reentry would be too hard... HE-U took a nice slug of trading money out of commission and now MTB- purchase and IPL-D purchases last week around $21.80 make it even harder.
Probably will leave a few low ball trade every blue moon illiquids out each day and if it hits good, if not so be it.
 
I joined SI a year or two ago but never posted anything. I went back today and got back in. On the other site, I just poked around to get a feel for it and will joil that one too.
 
RicDee said:
Mulligan Thanks, that site is a good resource for term dated issues.
Do any of you reading this now own any on the list at https://innovativeincomeinvestor.com/short-medium-maturity-income-issues/ ?
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Nice list to browse through. I did a quick run through issues coming due in the next few years and found some issues I want to look at further. I focused mostly on those that were trading below par as they'll get the biggest bump up at maturity.


  • GFNSL matures mid 2021 and has XIRR of 10.7%, so like where else would I find a return like that?

  • RILYL has XIRR of 9.1% with with late 2021 maturity.

  • AIW has XIRR of 9.4% wtih maturity mid-2023.

  • RILYI is about 9.2% with a late-2023 maturity as well.

So time to due some due diligence to understand the risks on each of these.
 
That where I fall short and fell compelled to avoid even though they may be excellent entry points...I dont understand their finances enough or understand what they are doing to trust them. Or to know if they can roll over the debt when needed...Like RILY. I have owned before and love the durations, but didnt understand all this new debt being issued for odd things like MagicJack and Juno. So 1990s stuff. i dont get the plan. Hell I assumed Magicjack disappeared a decade ago.
 
Mulligan said:
That where I fall short and fell compelled to avoid even though they may be excellent entry points...I dont understand their finances enough or understand what they are doing to trust them. Or to know if they can roll over the debt when needed...Like RILY. I have owned before and love the durations, but didnt understand all this new debt being issued for odd things like MagicJack and Juno. So 1990s stuff. i dont get the plan. Hell I assumed Magicjack disappeared a decade ago.
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Yup, it was interesting to see those pop up as I ran through analysis off the list, but had me taking long pause to digest just what the heck those companies are all about.

Strange acquisitions by RILY, but sometimes companies are acquired for the value of the patents they hold. I just did a quick look and found nothing specific on why those acquisitions but off the top of my head it could be for the value in their underlying communication technology. Sometimes cheaper to buy it than build it. Kind of funny to even think people today would pay $30/mo for dial-up service through Juno.
 
Did my math tonight...Backed out withdrawals and contributions and had a positive 9.8% return this year very pleased, at least until tax time. Largely past few years all cap gains were easy and controlled through tax free accounts so taxes were minimal but the QDI dividends...Had to trade my ass off this year and got caught with “keepers” in tax free so most trades of gains were short term and in taxable.
Due to my extra witholdings I havent owed govt on returns maybe ever. Going to be cutting a check to them this year. Had several big trades like 40% flips on several issues and an unexpected near 40% cap gain on an unsuspecting redemption by CTWS that I had a decent amount of cash in also...Plus Im just a lower mid 6 figure guy, no where near 7 figures so outsized gains on trades bring about a better portfolio return than one with a larger stash...Im just a pensioner making trades.
 
bobandsherry said:
Nice list to browse through. I did a quick run through issues coming due in the next few years and found some issues I want to look at further. I focused mostly on those that were trading below par as they'll get the biggest bump up at maturity.


  • GFNSL matures mid 2021 and has XIRR of 10.7%, so like where else would I find a return like that?

  • RILYL has XIRR of 9.1% with with late 2021 maturity.

  • AIW has XIRR of 9.4% wtih maturity mid-2023.

  • RILYI is about 9.2% with a late-2023 maturity as well.

So time to due some due diligence to understand the risks on each of these.
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I took a quick look at GFNSL (the company) and saw that they are an acquirer of companies that lease equipment. One of their three acquired outfits builds and leases frac tanks for the oilfield. With crude prices dropping, leasing frac tanks may be a loser as drillers and operators will slow down. I didn't look any closer than that at the others.

I peeked at their P&L and Balance Sheet and they are not coining money at this time. Just thinking out loud, and not really doing much more in depth due diligence on this, I wonder how they will raise cash to manage the preferred payouts and eventual call?

Anyone else look at any other the ones above?
 
Aja, you arent getting any help from me...I look at the balance sheet and numbers but know my knowledge is not strong enough for all the pretzel twisting companies can do to get themselves into trouble and out of it...So my fallback is ...Owning utes where any screw up (outside of maybe burning down California where inverse condemnation is law of the land) results in rate payers covering the mistake with a bill increase.
Or a “dumb” company like LAND that has real liquidation value and coverage ratio to pay preferreds in liquidation...Or banks like MTB that wont let you borrow $50 from them unless you first put $100 in a CD as collateral for the $50 loan, lol.
 
Mulligan said:
Aja, you arent getting any help from me...I look at the balance sheet and numbers but know my knowledge is not strong enough for all the pretzel twisting companies can do to get themselves into trouble and out of it...So my fallback is ...Owning utes where any screw up (outside of maybe burning down California where inverse condemnation is law of the land) results in rate payers covering the mistake with a bill increase.
Or a “dumb” company like LAND that has real liquidation value and coverage ratio to pay preferreds in liquidation...Or banks like MTB that wont let you borrow $50 from them unless you first put $100 in a CD as collateral for the $50 loan, lol.
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Agreed, as I see that selecting and buying these preferreds will require more in depth due diligence before hand as the company needs to be funded to actually call the issue at some point in time, let alone pay the high dividend along the way. And just looking at the Balance Sheet is not nearly enough. You need to analyze the business and its potential for longevity. Pretty detailed stuff.
 
Kudos to Mulligan for his very timely purchase of an "assload" of HE-U shares a few days ago, while on his way to the John. I believe he bought them at $24.50. :greetings10:



I was also able to buy some at the same price, but got only 100 shares.


HE-U went XD for $0.40, and today it sits at $25.76, completely recovering yesterday's dividend. :dance:
 
Coolius said:
Kudos to Mulligan for his very timely purchase of an "assload" of HE-U shares a few days ago, while on his way to the John. I believe he bought them at $24.50. :greetings10:



I was also able to buy some at the same price, but got only 100 shares.


HE-U went XD for $0.40, and today it sits at $25.76, completely recovering yesterday's dividend. :dance:
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Well as the saying goes....When ya gotta go, ya gotta go....Your MTB- tip has really jumped...Up $75 since you put out the buy signal earlier this week... I assume that price wont hold though. Its been a great year for me...Took some luck, some tips, and some digging but it proved one can “fight the Fed” and make money.
Beats the hell out of being a door greeter. Ebbnf went up a buck today and MTB- jumped, plus I got divis coming, so I am easily over 10.0% now...But I will start next year early and add them to next year....I may need it! :)
 
AJ
RE: I bought about 7 or so and all are from the one's talked about here.
I’m in a similar situation. What are the 7 you bought?
 
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RicDee said:
AJ
RE: I bought about 7 or so and all are from the one's talked about here.
I’m in a similar situation. What are the 7 you bought?
Click to expand...

RicDee, here are the ones I have now.

Equity Shares owned

CHSCM 600
AILLL 200
KTN 200
NISOP 100
EBBNF 200

Still in the market for a few more to spread the risk. I had the CHSCM for a while and picked up another 100 of AILLL.
 
Preferred Stock Investing-The Good , The Bad and The In Between

Had interesting trade yesterday, sold 500 of my 1400 EBBNF shares after seeing it spike a $1 on one trade. Mine sold at 18.86. Then for heck of it I put an immediate bid to buy back 500 at 18.20 and it hit too. I like those easy money trades. Then right after that 400 shares traded at 18.88, so it bounced right back 68 cents on next trade.
 
Mulligan said:
Had interesting trade yesterday, sold 500 of my 1400 EBBNF shares after seeing it spike a $1 on one trade. Mine sold at 18.86. Then for heck of it I put an immediate bid to buy back 500 at 18.20 and it hit too. I like those easy money trades. Then right after that 400 shares traded at 18.88, so it bounced right back 68 cents on next trade.
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Well done! I never seem to have your impeccable timing
 
brokrken said:
Well done! I never seem to have your impeccable timing
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I actually found the answer to how this happened...A poster from SI explained...

That money you made is courtesy of me.

I placed a phone limit to buy at the international desk (won’t let me enter it myself at Fidelity) and they executed it instead as a market order on the pink sheets - double mistake.

I told them I wouldn’t take the shares so they had to sell back into the market at a loss. Luckily they had the read back with my instructions, so I was in the clear,
 
Mulligan is really raking it in!! His "assload" of HE-U bought at $24.50 is now not only XD ( $0.40 ), but last trade @ $26.88. :cool:


Way to go, Mulligan!!


Of course, the poor sap who paid $26.88 for the 225 shares will probably not see it go any higher, but he/she will own a quality preferred stock with ( I hope ) many more years of steady and reliable income.


:dance:
 
Coolius, I suspect that was a dumb one time trade...Poor sap, lol..Unfortunately it wasnt my shares he bought either, lol.
 
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