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

[pb4uski]

Wow! This was the headline:

Altera Infrastructure GP LLC Announces Series of Measures Which Are Expected to Result in More Than $80 Million in Annual Cashflow Savings, Including Suspension of Quarterly Cash Distributions on the Preferred Units of Altera Infrastructure L.P. and Commitment from Brookfield to Extend Approximately $700 million in Indebtedness to 2026

Luckily, I don't have any.

https://finance.yahoo.com/news/altera-infrastructure-gp-llc-announces-064600488.html

 

[pb4uski]

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

Quantum indicates that it was called 7/15 and that last interest payment was 4/30... so I would think you would be due ~$25.31. What does your broker say?

 

[tizod]

Alin-e

I do have some. But I see a call for them to trade in. But it’s gobbledygook so I need to read it later. Seems like they are forcing it and taking it private. @gridbird didn’t you have some? Have a summary of it yet?

 

[brokrken]

Quantum indicates that it was called 7/15 and that last interest payment was 4/30... so I would think you would be due ~$25.31. What does your broker say?

Strange indeed. Broker says it's coming tomorrow. We shall see

 

[Hamster]

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.

Anyone interested in gambling on a few shares?

 

[Mulligan]

I do have some. But I see a call for them to trade in. But it’s gobbledygook so I need to read it later. Seems like they are forcing it and taking it private. @gridbird didn’t you have some? Have a summary of it yet?

Tizod, I havent owned it in quite some time as I bounced in and out based on price and call loss risk exposure. I have read on call from another forum, but no one has mentioned getting stiffed on any interest payment. There would definitely be accrued interest up to redemption notice date.

 

[pb4uski]

Anyone interested in gambling on a few shares?

Not if they have supended dividends. I already have one of those... PCG-D.

 

[bobandsherry]

Not if they have supended dividends. I already have one of those... PCG-D.

I did ok on those. Traded the heck out of the PCG issues, flipped them many times over a few months and did well. But that's a totally different beast. PCG was due to fires/bankruptcy and a utility. ALIN is financial/credit and no one will really care if it goes bust. Not exciting me based on what I've read.

BTW, I read that PGE may have been cause of fire last month, now going to bury 10,000 miles of power lines to avoid future fires, $10 to $20 billion cost. So who knows when they'll get back to paying that dividend, especially with the arrearage to catch up.

 

[Mulligan]

I did ok on those. Traded the heck out of the PCG issues, flipped them many times over a few months and did well. But that's a totally different beast. PCG was due to fires/bankruptcy and a utility. ALIN is financial/credit and no one will really care if it goes bust. Not exciting me based on what I've read.

BTW, I read that PGE may have been cause of fire last month, now going to bury 10,000 miles of power lines to avoid future fires, $10 to $20 billion cost. So who knows when they'll get back to paying that dividend, especially with the arrearage to catch up.

Bob, the ol PCG preferreds have just got literally too hot to play with for me now. I have been out for past couple months. I need a big drop now to play in the sandbox again.

 

[bobandsherry]

Bob, the ol PCG preferreds have just got literally too hot to play with for me now. I have been out for past couple months. I need a big drop now to play in the sandbox again.

Heh - American Greed did a piece earlier this month on PG&E, not a very flattering piece.

https://www.nbc.com/american-greed/video/burned-by-greed/4389865

 

[tizod]

What are folks doing with ALIN? I was planning to hold, even with the held divvy, and assume after they buy many they will have to reitre, at par, the rest with accumulated divvys. THe market does not seem to agree, but there would be the transition folks that have to get out, but what about those that take a chance to hold? Seems unlikely they can just table this forever??

 

[Winemaker]

What are folks doing with ALIN? I was planning to hold, even with the held divvy, and assume after they buy many they will have to reitre, at par, the rest with accumulated divvys. THe market does not seem to agree, but there would be the transition folks that have to get out, but what about those that take a chance to hold? Seems unlikely they can just table this forever??

I'm holding at the moment.

 

[Mulligan]

What are folks doing with ALIN? I was planning to hold, even with the held divvy, and assume after they buy many they will have to reitre, at par, the rest with accumulated divvys. THe market does not seem to agree, but there would be the transition folks that have to get out, but what about those that take a chance to hold? Seems unlikely they can just table this forever??

Thats a tough call. Market pricing doesnt always dictate possiibilities though, so it could bounce up from these lows to some degree just on selling pressure subsiding. But from what I have read the balance sheet is a wreck.
Preferreds can suspend for a long time.. DTLA which is controlled by Brookfield has been suspended for better part of 10-11 years and isnt paying yet.
So whether they pay or go into reorganization, there is that third option.. Just not paying… Sometimes after a period of time, the company can offer lower priced offers to buy. This happens at times too. Above what its priced at now, but well below par. Some people tender on those offers also.

 

[bobandsherry]

Anyone see dividend declared for GMLPF or what the ExDiv date is? Found nothing on the New Fortress Engergy Investor relations page. Distribution date is 8/15. ETrade still showing ExDiv of 5/7.

 

[Mulligan]

Anyone see dividend declared for GMLPF or what the ExDiv date is? Found nothing on the New Fortress Engergy Investor relations page. Distribution date is 8/15. ETrade still showing ExDiv of 5/7.

Bob, welcome to the world of delisted preferreds when the new Ahole parent doesnt feel obligated to give notice. It just happens, and then you get paid typically a few days late. Im sure it has went exD already. I sold out at 24.60 just to lighten up in this sector in general as I own both SB preferreds and GSL-B.
I own a couple like this.. No exD is ever posted. But the money will show up.

 

[bobandsherry]

Bob, welcome to the world of delisted preferreds when the new Ahole parent doesnt feel obligated to give notice. It just happens, and then you get paid typically a few days late. Im sure it has went exD already. I sold out at 24.60 just to lighten up in this sector in general as I own both SB preferreds and GSL-B.
I own a couple like this.. No exD is ever posted. But the money will show up.

Heh - I thought brokerages would have some insight, nothing even on NFE's site. It's like an ugly albatross they want to keep hidden Based on the recent dip those "in the know" already knew. I was thinking of cutting this lose before it gave up the full div....

 

[bobandsherry]

Wow - EP-C hit $48.50 today, even the ask is slightly below par at $49.99. Ex-D in next month.

 

[Mulligan]

Bob, that is a trading toy for me. I love that issue. I bought a month ago around $50 and sold last week at $51. Then some entity went on a volume dump spree. I bought them right back at 50.20 and .10, then doubled down at $49.85 today.

 

[bobandsherry]

Bob, that is a trading toy for me. I love that issue. I bought a month ago around $50 and sold last week at $51. Then some entity went on a volume dump spree. I bought them right back at 50.20 and .10, then doubled down at $49.85 today.

I was thinking that was you buying it all up at the $48.50 It was strange to see the big drop, especially with ExD next month for roughly 60 cent div. I did a quick check for any news just to be sure I wasn't caught in a bad trade, by the time I got back it was already ticking back up.

 

[Mulligan]

I was thinking that was you buying it all up at the $48.50 It was strange to see the big drop, especially with ExD next month for roughly 60 cent div. I did a quick check for any news just to be sure I wasn't caught in a bad trade, by the time I got back it was already ticking back up.

Ha, Im a small fish! Its just a massive dump. KMI would have to be in trouble to cause this any stress. As they are the responsible party that must pay.

 

[pb4uski]

Just logged onto my Vanguard account and saw that I have yet another call:

GLADSTONE INVESTMENT CORP SER E CUML TERM PFD 6.375% 08/31/25, 376546602, in the brokerage account xxxxxxxx, is scheduled to be redeemed on 2021-08-19. A quantity of 500 will be redeemed at $25 for a total of $12,500.

Luckily, I bought it right so I will do ok... 4.93% annual yield so far and one more dividend to go. I sort of knew this one was coming as they had recently issued a lower rate instrument.

 

[Happyras]

Question;
Anyone own Scorpio Tankers SBBA? I am having a difficult time assessing the risk, and why the shares trade below par. It won't be ex div until next month, but shares are now trading 24.90 ish. Any thoughts? I wanted to invest more, but need to understand this one better.

 

[pb4uski]

I dunno... I tend to stay away from non-rated issues.

I did read that they did a 1-for-10 reverse stock split in Jan 2019 and analysts revised earnings estimates downward recently and the common has declined from a 1M high of $17.46 on July 21 to $14.41.

 

[bobandsherry]

Wow - EP-C hit $48.50 today, even the ask is slightly below par at $49.99. Ex-D in next month.

This continues to trade below par. I picked up some more at $49.05 today. It's trading at $49.68 currently and higher than average volume. Someone is selling off.

 

[Mulligan]

Question;
Anyone own Scorpio Tankers SBBA? I am having a difficult time assessing the risk, and why the shares trade below par. It won't be ex div until next month, but shares are now trading 24.90 ish. Any thoughts? I wanted to invest more, but need to understand this one better.

The container and bulk shipping industry is on fire and raking in cash. But the oil sector is not and is still shaky. And finances reflect it. I would consider this high risk and measured in purchases.