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

[brokrken]

Huge buying today in SPLP-A. I can't find any news. Anybody got any insight?

 

[Running_Man]

Huge buying today in SPLP-A. I can't find any news. Anybody got any insight?

I bought some

 

[brokrken]

I bought some

Wow, Running_Man, you're a big spender. Volume was about 370k shares vs the normal 20K. Must be nice to have $8 million you can throw at one low rated preferred!

 

[Born2Fish]

EPD

EPD closed ~25.15 on 11-19-2019. Been falling for a bit now.

I am down ~$3500 in EPD position but have done really well with the divs over past 3 years.

Thinking about adding. Currently about 3% of my holdings in EPD, would add to get to 3.5%.

I sold half of my BX on 9/16/19 for a big gain. Been sitting on the cash 60 days now. Everything looks high to me.

Sanity check. Is 3.5% too much in a single position?

 

[aja8888]

EPD closed ~25.15 on 11-19-2019. Been falling for a bit now.

I am down ~$3500 in EPD position but have done really well with the divs over past 3 years.

Thinking about adding. Currently about 3% of my holdings in EPD, would add to get to 3.5%.

I sold half of my BX on 9/16/19 for a big gain. Been sitting on the cash 60 days now. Everything looks high to me.

Sanity check. Is 3.5% too much in a single position?

Rule of thumb is 5% for the max position.

I have held EPD for many years and got out several years ago before oil prices fell. Even though it's a pipeline and gas liquids company, it seems to follow the crude prices. I'm waiting for a new EPD entry point to get back in for a spell.

 

[Born2Fish]

Rule of thumb is 5% for the max position.

I have held EPD for many years and got out several years ago before oil prices fell. Even though it's a pipeline and gas liquids company, it seems to follow the crude prices. I'm waiting for a new EPD entry point to get back in for a spell.

After quick gain at open, EPD is currently at my cost. Looking at $24 to add.

 

[Mulligan]

I jumped in on those LTS Baby bonds last week and made over 10% in 2 days! I only bought a modest amount though, and currently have 500 shares. GSLD is a newly offered shipping senior note that is just issued and still under par. Its an 8% par issue. S&P upgraded credit rating 2 weeks ago from B to B+.
Last few weeks have been exceptional trading weeks for me.

 

[Winemaker]

I got rid of my LTS baby bonds the last time they had a IPO for the last set they financed. Something didn't smell right to me, but I made some money.


The uptick in SLPLA may be the fact that early next year, 20% will be called at $25.00. Perhaps some arbitrage.

 

[Mulligan]

I got rid of my LTS baby bonds the last time they had a IPO for the last set they financed. Something didn't smell right to me, but I made some money.


The uptick in SLPLA may be the fact that early next year, 20% will be called at $25.00. Perhaps some arbitrage.

I dont like them at all either...In fact less, than before even, but this was a whore trade for a quick buck. They oversold on delistment statement from acquiring company.

 

[bobandsherry]

I jumped in on those LTS Baby bonds last week and made over 10% in 2 days! I only bought a modest amount though, and currently have 500 shares. GSLD is a newly offered shipping senior note that is just issued and still under par. Its an 8% par issue. S&P upgraded credit rating 2 weeks ago from B to B+.
Last few weeks have been exceptional trading weeks for me.

Nice play on LTS. Thanks for sharing about GSLD, but is there a reason you'd take that vs. GSL-B w/8.75%, QDI and trading at just a couple cents over par? Prefer the term dated of Sr. Note?

 

[Mulligan]

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

Nice play on LTS. Thanks for sharing about GSLD, but is there a reason you'd take that vs. GSL-B w/8.75%, QDI and trading at just a couple cents over par? Prefer the term dated of Sr. Note?

Good question Bob, I didnt explain. This is straight forward IPO out of the gate buy and flip. These notes were just issued and being shoveled out by underwriters to get their dough. Since these notes sit above in cap stack and once IPO is exhausted and share volume tightens up it should drift upwards and onwards. And then I will flip out...For a buy and hold and QDI benefits, one may prefer the preferred. Im not looking to hold here...Just a stinky flip like LTS issues. BTW, LTS may stall out here. The acquirer has weak credit profile.

 

[bobandsherry]

Mulli - got it, thanks. Sounds like with your week you can upsize up to waygu and
champagne?

 

[Mulligan]

Bob, If I dont tell my GF, I can stay cheap like I want to.

 

[brokrken]

The uptick in SLPLA may be the fact that early next year, 20% will be called at $25.00. Perhaps some arbitrage.

Wine, I thought the same thing and have been waiting for this to finally happen, just didn't expect it all in one day, which is why I questioned if there was something else that I missed.

 

[Winemaker]

Mully, I hope you're happy, I broke the bank today and bought 15 shares of SLMNP at $1015.75 today, although it did get down to $1014. I was in the hole for a short while, til it closed at my purchase price. Whew!

 

[Mulligan]

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

Mully, I hope you're happy, I broke the bank today and bought 15 shares of SLMNP at $1015.75 today, although it did get down to $1014. I was in the hole for a short while, til it closed at my purchase price. Whew!

Winemaker, you make me laugh...I sold off the rest of my LTS dirtbag preferreds for a quick $2 a share plus profit in a couple days.....And used part of proceeds to buy 10 shares at $1014.10 at near end of day. Brothers from another mother!!! I dont get this preferred at all... Its a bit confounding...High quality, uncallable QDI, and basically at 6% now halfway to next $15 divi. It trades like market thinks it will be redeemed in May at first call date...But there is no call date anymore... I have about 50 shares...And too be honest that is probably 25 more than I should have.

 

[Winemaker]

Mully, I make a lot of people laugh! And an equally number of people mad!

 

[Mulligan]

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

Its their fault...They misunderstand you! BTW, I just looked..I presented you “alternate facts” (what used to be known as a lie, back in the good old days). I actually paid $1015 not $1014 today. The ol memory isnt very good anymore...

 

[BrianB]

Another partial redemption by Vereit

I just saw that Vereit is redeeming another 20% of the Series "F" preferred. With the 10% redeemed in May, I've now lost almost a third of my shares.

VEREIT® Announces Partial Redemption of 6.70% Series F Cumulative Redeemable Preferred Stock
BY PR Newswire
— 4:15 PM ET 11/21/2019

announced today that it intends to redeem 8,000,000 shares of its 6.70% Series F Cumulative Redeemable Preferred Stock ("Series F Preferred Stock"), representing approximately 20.58% of its approximately 38.9 million shares of Series F Preferred Stock, on December 21, 2019 (the "Redemption Date"). The shares of Series F Preferred Stock will be redeemed at a redemption price of $25.00 per share, plus accrued and unpaid dividends from December 15, 2019 to, but not including, the Redemption Date in an amount equal to $0.0279167 per share, for total proceeds of $25.0279167 per share (the "Redemption Price"). Payment of the Redemption Price will be made on December 23, 2019, the first business day after the Redemption Date. As previously announced, VEREIT ( VER ) will pay the cash dividend on the Series F Preferred Stock of $0.1395833 for the period from November 15, 2019 through December 14, 2019 to holders of Series F Preferred Stock as of December 1, 2019, which is the record date for such dividend, on December 15, 2019.

 

[bobandsherry]

Good question Bob, I didnt explain. This is straight forward IPO out of the gate buy and flip. These notes were just issued and being shoveled out by underwriters to get their dough. Since these notes sit above in cap stack and once IPO is exhausted and share volume tightens up it should drift upwards and onwards. And then I will flip out...For a buy and hold and QDI benefits, one may prefer the preferred. Im not looking to hold here...Just a stinky flip like LTS issues. BTW, LTS may stall out here. The acquirer has weak credit profile.

Thanks for the tip, bought in under par, price bounce and end of day just said it was time to sell for 50 cents/share for a few quick bucks made. Saw one crazy purchase today of $25.94, knowing how lucky you are that was probably your trade that you sold off

 

[Mulligan]

Bob, I just noticed that...I wish I could impress you and say yes that was me! But sigh, I cant. Actually I still have mine. But Im way closer to selling than to buying more, I promise!!! I did do a couple of low rent purchases from my LTS cash...Bought TDJ today..Repurchased TDE last week. They look like they both are hanging on, so I am back in again. Have danced here before a few times for small change plays.

 

[Mulligan]

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

I just saw that Vereit is redeeming another 20% of the Series "F" preferred. With the 10% redeemed in May, I've now lost almost a third of my shares.

Brian, the word got out last week and if you may have noticed it sold off hard then. I went back in for 450 shares at 25.18 I think... I bought the extra 50 knowing a partial call would take some.

 

[Mulligan]

Thanks for the tip, bought in under par, price bounce and end of day just said it was time to sell for 50 cents/share for a few quick bucks made. Saw one crazy purchase today of $25.94, knowing how lucky you are that was probably your trade that you sold off

Bob, I basically follow what you just did. If I buy something there is no love or trust for, a 50 cent hit and run is good enough for me. I have been squeezing as much golf in as I could because weather is changing. So that actually helped me make more money with the LTS stink trades. The shipper issue I just didnt keep track of today as I was battling hard to stay under 80 today.

 

[BrianB]

Vereit Preferred "F" partial redemption

Brian, the word got out last week and if you may have noticed it sold off hard then. I went back in for 450 shares at 25.18 I think... I bought the extra 50 knowing a partial call would take some.

So if I buy another 100 shares before 12/15 will 20% of those new shares get redeemed? I'm not sure how this works with the dates they have given.

Fidelity already shows the redeemed shares as a separate holding. They show the current price ($25.36) but there is no option to sell that quantity, so it seems to be a "done deal", although the PR Newswire description refers to a 12/15 date.

 

[Mulligan]

So if I buy another 100 shares before 12/15 will 20% of those new shares get redeemed? I'm not sure how this works with the dates they have given.



Fidelity already shows the redeemed shares as a separate holding. They show the current price ($25.36) but there is no option to sell that quantity, so it seems to be a "done deal", although the PR Newswire description refers to a 12/15 date.

Brian, you pieced together info I didnt look for. I was out of VER-F completely at time and heard about the second partial call. I didnt research to know the segregation had already occurred. So this means none of mine will be redeemed. Yes, if you bought shares now then you would not have any shares impounded.