Cruising Into the Weekend

We all know today will be pretty darned quiet as no one is doing much investment wise–except some of us that are addicted to some sort of market adrenalin fix.

Today we have to search a little harder for that ‘fix’. Maybe one of the most interesting items today is the B. Riley (RILY) baby bond ‘call’. The company is calling the RILYL 7.50% issue which is the only issue outstanding that is currently in the early redemption period.

B Riley has become a complicated company that operates in traditional financial markets as well as having ownership (or partial ownership) of various operating companies–sometimes to take advantage of operating losses. bebe Inc. , magicjack, themaven?? Do I smell an implosion if a recession ever comes??

We haven’t had the time to do a deep dive into B Rileys financials lately, but anytime I see a company that has debt of almost $800 million with total equity of $299 million I get highly suspicious – I am going to try to dissect this one sometime soon.

This weekend we will post the latest version of the Sortable Master Listing. Since we had originally posted an earlier version we have been tweaking some components and now will put out a version for readers to use if they so choose. This will require you make a copy for yourself–so you should have a google account if you want to use it.

I will then start working on the next version for everyone–I plan to post an updated version every month.

A Quick Look at Giant Cooperative CHS

Ag cooperative giant CHS (Cenex Harvest States) has now turned into a oil refining company masquerading as a ag company.

CHS was a darling of mine many years ago so I thought I should check in with them because of the 5 preferred issues they have outstanding.

CHS preferreds have always been good to investors–with coupons much higher than comparable corporations would offer.

Some may remember–and some may not know this–that the 1st issue from CHS was issued primarily to cooperative members way back in 2003–it was a whopping 8% coupon (CHSCP), which became redeemable in 2008. In 2013 the company changed the terms of the issue so that it would not be redeemable until 2023. During the years of 2003-2008 the company issued another 9 million (more or less) of these shares–even though they could have garnered a lower coupon–the ownership remained strongly in the hands of many of their members, thus it always remained a strongly traded issue and I have always surmised that the optional redemption period on this issue was extended simply as a bit of a concession to the members/owners.

After this initial issue (in 2013, 2015 and 2015) the company began to sell new issues of preferred stock–primarily to build a massive fertilizer plan in North Dakota. The new facility was never built and instead the company invested proceeds in giant fertilizer company CF Industries (CF)–quite honestly this investment has not provided much in the way of profits until recently.

So what is the company doing lately in this absolutely horrible ag economy? Actually they are making quite a bunch of money–but little of the profit comes from the ag end of the business.

The cooperative had net income of $819 million for the year ending 8/31/2019–$618 million was generated from the 2 refineries they own as well as 1,450 retail outlets. Ag contributed a measly $43 million of net income (off revenue of $24 billion), while the nitrogen investment in CF Industries kicked in $73 million. Investments in Ardent Mills (the nations largest flour miller–a venture with Cargill and and ConAgra) and Ventura Foods contributed $81 million.

So while the lions share of revenue comes from the ag segment it produces almost no profits right now.

The total revenues the company has produced during the last 3 years have all been in the $31-$32 billion area which actually is pretty respectable for operating in the ag segment of the economy. Of course, if you go further back you will see they had revenue of $44 billion at the peak for the year ending 8/31/2013. Energy has always been a pretty large chunk of earnings for the company–so right now the prime difference is the lack of contribution from the ag business.–now if this was a publicly owned company shareholders would be pounding the table to get rid of the ag business. Obviously this won’t happen.

So as a whole the company is performing well. Unfortunately energy at some point will perform poorly and one can only hope that the ag economy has straightened out by then. Looking further at the company’s debt situation–I always look closely at the debt–things look good. Most companies can perform relatively well–even in a recession, if their debt is under control. In this respect CHS runs a pretty tight ship. They have $1.8 billion in long term debt and $2.2 billion of notes outstanding–a total of $4 billion in debt against $16 billion in assets. Equity is around $8.6 billion. Interest rates on the debt run from 2.25% to 5.40%–the debt is all unsecured. So debt is really a small consideration for the coop.

The company’s 10-K filing for the year can be seen here.

Now going back to the preferred stock–

CHSCP, 8% perpetual is currently trading at $28.15 and is optionally redeemable starting 7/2023.

CHSCO, 7.875% perpetual is currently trading at $27.60 and is optionally redeemable starting 9/2023.

CHSCN 7.10% reset rate perpetual is currently trading at $27.83 and is optionally redeemable starting in 3/2024.

CHSCM 6.75% reset rate perpetual is currently trading at $26.40 and is optionally redeemable starting 9/2024.

CHSCL 7.50% perpetual is currently trading at $27.38 and is optionally redeemable staring 2/2025.

So as a new buyer (I haven’t had shares for a long time) these issues don’t look too attractive on a yield to worst basis. On the other hand knowing that the air won’t come out of the price until maybe 12 months before possible redemption and having 3.5 to 5 years before potential redemption maybe a tiny buy is in order?

Do I really like CHS enough to buy the CHSCL 7.50% issue at a current yield of 6.85%–and a yield to worst of 5-5.25%? I doubt it.

First Republic Prices Preferred Stock

The previously announced new preferred issue from private banker First Republic (FRC) has been priced.

The company will sell 14 million shares (with another 2 million available for overallotments) with a fixed rate coupon of 4.70%.

The issue will be non cumulative and qualified.

The issue is investment grade with a BBB- rating from Standand and Poors and Baa3 from Moodys.

The new issue will trade under permanent ticker FRC-J when it begins to trade on the permanent exchange.

The new issue will trade on the OTC Grey market starting immediately under the ticker FRCJL.

The company’s press release with the pricing can be found here.

Thanks to Jerry for having the coupon 1st–very early.

Private Banker First Republic to Sell Investment Grade Preferred

Private banker and investment firm First Republic (FRC) has announced the issuance of a new series of non cumulative preferred stock.

The coupon on this one will be low–5% or below–and will be qualified. The issue should be rated BBB- by Standard and Poors and Baa3 by Moodys

NOTE–for due diligence you should go to the company’s investor relations page here. Alternatively you can go to the FDIC website here and search for First Republic. The company is NOT under supervision of the SEC so filings will not be found there.

The preliminary paperwork can be found here.

Thanks to mcg for being on this one.

Monday Morning Kickoff

The Standard and Poors 500 moved in a range of 3091 to 3127, about a 1% range, before closing the week at 3110–around a 1/2% loss for the week.

Interest rates, as measured by the 10 year treasury, stayed pretty tame last week, moving in a range of 1.73% to 1.85 before closing the week at 1.77%.

The Fed balance sheet actually fell last week by $17 billion–this is the first fall in the balance sheet since 8/28/2019.

Last week we had the following new income issues announced.

Morgan Stanley (MS) announced a new preferred stock with a coupon of 4.875%. The issue is trading under OTC Ticker MSLQL and last traded at $24.98. Further details are here.

QVC Inc. sold a new issue of baby bonds that while investment grade rated carry a coupon of 6.25%. The issue will trade under ticker QVCC, but it is not yet trading on public exchanges. Further details are here.

Insurance company AXA Equitable (EQH) sold a new perpetual preferred with a coupon of 5.25%–not toop bad for a split rate investment grade issue. The shares are trading on the OTC Grey market under ticker AXQEL and last traded at $24.85. Further details are here.

REIT Global Net Lease (GNL) sold a new preferred with a 6.875% coupon. This is an unrated issue which is now trading under the OTC Grey market ticker of GBLNP–last trading at $24.64. Further details can be found here.

Insurer American Financial Group (AFG) priced an investment grade baby bond with a coupon of 5.125%. There is no OTC Grey market trading in the issue, but the issue will trade soon on the NYSE under ticker AFGC. Further details are here.

Lastly partnership Fortress Transportation and Infrastructure (FTAI) sold a fixed to floating rate preferred with an initial coupon of 8%. Being a partnership the shares will bring a K-1 at tax time and the issue, while cumulative, will not be a qualified distribution. Shares will trade today (Monday) on the OTC Grey market under ticker FTABP. Further details can be seen here.

Fortress Transportation and Infrastructure Prices Preferred

Fortress Transportation and Infrastructure (FTAI) priced their previously announced fixed to floating preferred stock with an initial fixed rate of 8%. The issue will float starting in 2024.

The company is a partnership and as such it will issue a K-1 at tax time. As a partnership it will not pay a qualified distribution.

The pricing term sheet can be read here.

Investment Grade Preferreds and Baby Bonds Now Callable-REPLAY

About 2 weeks ago I posted this spreadsheet which is Investment Grade Preferreds and Baby Bonds Now Callable.

I am reposting–I did not update the dates as little changes over a 2 week period (although since the original post 6 issues have been called for redemption), BUT prices do change and I see a couple I don’t own that are in the list which I may pick up.

Currently I own the following off the list–

Axis 5.50% preferred (AXS-D)

WR Berkley 5.625% baby bond (WRB-B).

Vornado Realty Trust 5.40% Preferred (VNO-L)

So I now see a couple others that I will look closer at for potential purchase.

1st is the DTE Energy 5.25% baby bond (DTQ).

2ndly is the Kimco Realty 5.50% preferred (KIM-J)

The idea is that if interest rates don’t move too violently up or down these issues should stay relatively closely tied to liquidation preference ($25) while providing high levels of safety. I don’t really want to deal with any issues under 5%, because the redemption likelihood is small thus exposing the issue to bigger share price moves (down).

Here is the list again.

Note that the yield to worst DOES NOT include accrued dividends so the actual yield to worst is slightly better than that listed.

For those wanting the full investment grade list of baby bonds and preferred stocks you can click here. You can toggle on the bottom for investment grade.

Dynagas LNG Partners LP Reports Earnings

It is always amazing how poorly these shipping companies are operated—or maybe it is just amazing that supposedly educated lenders will lend them money knowing odds are high that they will never get their cash back.

Dynagas LNG Partners (DLNG) is one of those shippers that one would think had an opportunity to make a decent profit–they are a small partnership–revenue in the $135 million/annually area. They have only 6 LNG carriers and their sponsor has been in business since 2004. 5 of the 6 LNG ships are ice rated–they can travel the northern seas–up near the Artic circle–in fact their sponsor was the 1st LNG carrier to do so back in 2012.

DLNG was formed in 2013 with an IPO in the 4th quarter. Reviewing the financials for the 9 months prior to the IPO we see a company with stellar numbers–in fact I can clearly remember reviewing these financials and thinking “maybe these LNG carriers have some real potential”. Take a look at the results for 3 months and 9 months ending 9/30/2013. The partnership operated only 3 ships at this time and they were contracted at $76,000/day each. This shows a net income of $1.59/share for 9 months.

Speed ahead to 2019–the company operates 6 LNG carriers now instead of 3. Below is their recently released earnings statement. They are contracted at an average daily rate of $62,000—and they can’t even bring a single damned cent to the bottom line!!

One can look at these income statements and clearly see that while revenue is up 50% in 6 years, interest expense is up 400%–easy money and stupid lenders. But I am sure the sponsor of the partnership is happy – they get their management fees year end and year out irrespective of their incompetence.

Of course there is much more to the story–I’m am sure the sponsors screwed the partnership on ‘drop down’ assets–financed with easy money–but the point really is–BE DARNED CAREFUL WITH THE 2 OUTSTANDING DYNAGAS LNG PARTNERS PREFERRED SHARES–which can be seen here. The shares had big jumps when the company was able to refinance their debt–so instead of a instant bankruptcy they will now go into ‘slow motion’ bankruptcy.

The company has now been restricted from paying any further common share distributions while their new loan is outstanding–BUT the next available source of funds will be the preferred dividends. The company has only a bit of cash, but no doubt they will survive for a few years (the cash you see on the balance sheet 9/30/2019 is already restricted for debt repayment)–lenders will be forced to keep them afloat for a while. Honestly there is a 50/50 chance they will be liquidated within 5 years and common and preferred holders will get ZIP.

For all practical purposes this is now a Zombie company.

Here is their earnings release.

Fortress Transportation and Infrastructure Announces Fixed to Floating Preferred-Corrected

Correction–FTAI is a LLC and thus Non-Qualified and will issue a K-1.

Transportation infrastructure company Fortress Transportation and Infrastructure (FTAI) has announced the issuance of a new issue of Fixed-to-Floating Rate preferred stock.

The company currently has 1 other fixed-to-floating rate coupon issue which was sold in September with a fixed rate of 8.25% which moves to floating on 9/15/2024 with a coupon of 3 month Libor plus a spread of 6.886%. This issue is currently at $25.79 after trading as high as the $26.40 area prior to the new issue announcement. You can see it here.

Obviously this issue is not investment grade, but will be cumulative, but NON qualified (K-1)

The preliminary prospectus is here.

Eugene was right on top of this one earlier this morning.

VEREIT Announces Partial Preferred Redemption

As we all knew was coming, REIT VEREIT (VER) has announced the redemption of 8 million shares of the VER-F 6.70% perpetual preferred.

The company had previously redeemed 4 million shares so now in total they have redeemed 12 million shares of almost 43 million outstanding–so we still have 31 million shares trading.

The shares being called represent about 20.58% of all shares outstanding and will be redeemed at $25.028/share which represents liquidation plus accrued. A full dividend of about 14 cents will be paid to holders on 12/15/2019.

So for those that were wondering – the shares will be redeemed on a pro rata basis, so you will see 20.58% of your shares get segregated in your account and on the call date (12/21) they will disappear and cash will be received.

VER-F shares are now trading at $25.26 after falling as low as $25.07 yesterday. I know many folks took the opportunity to buy more shares (I bought 300 more) since the call risk had left the price. My purchase came as one of the readers pointed out a partial call instead of a full redemption–initially I had missed the partial call note.

Thanks to Dave for posting the company press release late today. The press release can be read here.

American Financial Group Prices Subordinated Debentures

As noted earlier today insurance company American Financial Group (AFG) is offering a new baby bond.

The investment grade rated issue has been priced at 5.125% with a maturity date in 2059.

The issue carries a BBB- from Standard and Poors and a Baa2 from Moodys.

There is no OTC Grey Market trading, but it might be available to you before big board trading if you call your broker with the CUSIP.

The pricing term sheet is here.

American Financial Group to Offer Baby Bonds

Insurance company American Financial Group (AFG) has announced a new issuance of baby bonds.

The company has a number of issues already outstanding–3 baby bond issues to be exact.

The company intends to redeem the 6.25% baby bonds due in 2054 (AFGE), which have been redeemable since 9/30/2019.

The new issue will likely be investment grade (BBB- from S&P and Baa2 from Moodys) so the coupon will be fairly low. The permanent ticker will be AFGC when it begins to trade on the NYSE in a week or two.

The preliminary prospectus can be found here.

Ready Capital Reopens Baby Bonds

Multi strategy REIT Ready Capital (RC) will reopen (sell more shares in a currently outstanding issue) their 6.20% baby bonds (RCB).

This issue was originally sold in July, 2019 and was most recently trading in the $25.59 area.

Disclousre–I own this issue and may take this opportunity to add a little more.

The selling price of the new issue has not been announced yet.

The preliminary prospectus can be found here.

Global Net Lease Prices Preferred Issue-UPDATE – OTC Ticker

FINALLY the OTC Grey market ticker has been posted. It is GBLNP–of course now you have to wait on your broker to update their systems.

Diversified triple net lease REIT Global Net Lease (GNL) has priced their new preferred.

The issue comes with a coupon of 6.875% and it will be cumulative, but non qualified.

This is unrated–they will sell 3 million shares plus 450,000 more for over allotments.

The issue WILL trade on the OTC Grey market–likely tomorrow, but the temporary ticker has not been announced–likely one of the folks will post it here in the morning the minute it is announced.

I may/may not have a personal interest in the issue–probably only if it trades at $24.75 or at least below $25–then our interest might only be for a flip.

The pricing term sheet can be found here.

AXA Equitable Holdings Announces Preferred Pricing

Insurance company/asset manager AXA Equitable (EQH) has posted the pricing on the new preferred stock previously announced.

The issue has priced with a fixed rate coupon of 5.25%–slightly better than what I thought it might price.

The issue is non cumulative and qualified and is a fairly large issue with 29 million shares with 4.35 million more for an over allotment.

The shares will trade on the OTC Grey market immediately under ticker AXQEL.

The pricing term sheet can be found here.

Thank you Jerry for having the correct coupon hours ago.

AXA Equitable Holdings Announces New Preferred Stock

Insurance/asset manager AXA Equitable Holdings (EQH) has announced a new issue of non-cumulative, fixed rate, perpetual preferred stock.

No doubt this will be another low coupon issue–readers are guessing 4.75% to 5%.

The issue will be lower investment grade–S&P has the rating at BBB-.

This will be the 1st preferred for AXA (at least for many years).

The preliminary prospectus can be found here.

mcg had this one on the Reader Initiated Alert page a couple hours ago.

QVC Prices New Baby Bond

Online and television retailer QVC (owned by Qurate Retail:QRTEA) has priced the previously announced baby bond.

The issue will carry a coupon of 6.25% on 17.4 million shares (plus 2.6 million over allotment shares).

The issue is low investment grade per S&P and Fitch, but speculative per Moodys.

Being investment grade one would have expected a lower coupon, so this means that holders of the QVCD issue (the currently outstanding 6.375% baby bond), which carries a yield to worst around 5.5% would be a bit better off buying the new issue once it trades (sometime in the next week), assuming it trades in the $25 area.

There will be no OTC Grey market trading in this issue, but if one desires an early purchase a call to your broker might allow you to purchase before permanent market trading.

The pricing term sheet can be read here.

REIT Global Net Lease Announces New Preferred Issue

Triple net lease REIT Global Net Lease (GNL) has announced the sale of a new cumulative, fixed rate, perpetual preferred stock. Of course being a REIT preferred the dividends will be non qualified.

The issue will have an early redemption period in 2024.

The preliminary prospectus can be found here.

The company has 1 other preferred issue outstanding which has a 7.25% coupon (GNL-A) which trades fairly strongly and is at $26.35.

Thanks to Fabrib for being on this one right away this morning.

REIT VEREIT Prices Senior Notes

VEREIT has priced a new issue of Senior Notes–NOT baby bonds.

$600 million in investment grade notes were priced at 3.10%. The notes are expected to be rated Baa3 by Moodys, BBB- by S&P and BBB by Fitch.

I only mention this because the VEREIT 6.70% perpetual preferreds have been a favorite of many of us–and for good reason–where do you find this coupon of a quality REIT?

While I won’t go into detail VEREIT is the old American Realty Capital Properties, which almost fizzled out of existence 5 years ago because of accounting fraud.

VEREIT announced a settlement of about $740 million in September and now the company can move forward. This is no little company–they have $14 billion in assets and $7 Billion in equity, but the lack of a settlement in the American Realty Capital accounting fraud case had hindered the company from moving ahead with the normal course of business.

The VER-F preferred fell by 36 cents today as the filing on the above referenced senior notes stated they would be calling some number of the issue. With VER-F now trading at $25.12 it would seem that a partial call of the issue might leave some opportunity.

With a monthly dividend of almost 14 cents any shares left outstanding will garner a generous coupon.

There are currently 39 million shares of the VER-F issue outstanding (as they had previously redeemed 4 million) so it would require $1 billion for a full redemption, but in the prospectus for the notes they used an ‘assume’ $200 million for redemption–so this should leave around 30 million shares out.

The prospectus on the notes can be read here. The pricing document is here.

Model Portfolios

I have kept model portfolios (meaning they are not real, but educational ) for years–the ones on this site are just a few years old, but provide some insight, in particular to a newer investor.

The Enhanced High Yield Income Portfolio has worked fairly well–near the intent of the model. This model had an original goal of a 8.25% return, which we lowered to 7.50% a couple months ago as more and more high yield issues were redeemed. This portfolio began on 1/25/2018–so just short of 2 years old.

The portfolio is very rarely traded–and new purchases are primarily done to re-invest dividends. Occasionally issues with known problems are sold–but it is rare. I did unload the hated Spark Energy 8.75% Fixed-to-Floating Rate preferred because it is too volatile for my taste. This issue plunged as low as $17 last December/January and it took 8 months to get back near $25 where we took the opportunity to sell the issue.

The Enhanced portion of this portfolio was intended to hold a REIT or 2 which had some upside potential. The primary vehicles were to be issues like Whitestone REIT (WSR) and Independant Realty Trust (IRT), both issues that we had traded in and out of many times for short term profits. I simply have not had time to use this feature since the original profitable sale of WSR.

We had written before that this portfolio was too concentrated with energy related issues–which included some energy (LNG) shippers and in my opinion it is still too concentrated. Unfortunately just like real life decent high yield opportunities are few and far between.

So in spite of a high cash position of around 20% performance has been on target–14.77% in 22 months. So the portfolio should be right around 8% annually when the 2nd year ends. While not as great as it could be it is a lower stress 8%–no trading, no babysitting and no flipping.

The Medium Duration Income Portfolio, which should be the most steady portfolio of the 2 models, has performed poorly. These are shorter duration issues with maturities generally in 10 years or less–although we modified the ‘rules’ to allow up to 25% of the portfolio to have longer maturities as our choices became very limited.

This medium duration portfolio happened to hold a position in Atlas Financial 6.625% baby bonds until 5/2019 at which point the pain was great and the outlook for recovery was marginal so it was sold. The lesson here was that companies without longer histories can bring great pain as about a $5,500 loss was taken on this position–so about 5% of the portfolio evaporated.

So currently this more conservative (in duration) portfolio has a gain of about 6% in 21 months–which would be 11% without the Atlas issue–but it is what it is

It should always be expected that if you are buying issues with maturities in the near future you will be rewarded with a more meager coupon, but hopefully with a ‘date certain’ for return of your capital

Some of my most recent lessons are–

–even with a modest $100,000 portfolio you need diversification of issues. 10-12 is likely not enough to save you if 1 issues falls by 55%. I am thinking for $100,000 15-16 issues are probably better.

–sticking to rules that are not reasonable may well cost you in the end. For instance the Medium Duration Income Portfolio allowed for only issues with 10 years or less to maturity–because of this it held too much cash. Opening it up to allow 25% longer dated issues allows a much broader selection.

So while there are wild rides over a 2 year period in the end ‘buy and hold’ is not a terrible thing for those not wanting to be glued to the computer screen (or phone) like many of us are–unfortunately.

QVC Announces New Baby Bond Issuance

Retailer QVC (owned by Qurate Retail:QRTEA) has announced a new offering of $25/share baby bonds.

The Senior Secured Notes will have a maturity date way out in 2068.

The notes will trade under the ticker QVCC when they begin to trade.

The company has a 6.375% baby bond already outstanding (QVCD) which can be seen here. While we don’t see a new rating today the QVCD notes are low investment grade (BBB-) per S&P and a below investment grade per Moodys Ba2

The preliminary prospectus can be read here.

Ptrader and If you Prefer were on this on instantly.

Deutsche Bank Calling Trust Preferred

Ptrader has posted that Deutsche Bank is calling a 8.05% trust preferred (DKT) which should not be a real surprise.

The SEC filing is here.

The issue is trading at $25.70 right now–it has been callable since 6/30/2018.

Looks like a busy week for more higher yielding issues getting called–we hate it–but we simply have to deal with it.

VEREIT to Call 6.70% Preferred–Update

UPDATE–This will be just a partial redemption of the issue–amount yet to be determined.

REIT VEREIT (VER) has announced a new senior note offering with the intent to call the 6.70% perpetual VER-F, monthly paying preferred.

This has been a favorite of mine–another one gone. It looks like a small loss of capital this morning as the shares are trading at $25.48–the monthly dividend is about 14 cents. This is a case where I have held a small position knowing the call risk was there–but which I chose to incur for the 6.70% coupon–I have held it for a fairly long time.

The preliminary prospectus on the notes can be seen here.

Morgan Stanley Prices New Preferred

Morgan Stanley has priced their previously announced new fixed rate preferred.

The issue is non-cumulative, qualified, NON investment grade and 20 million shares priced at 4.875%.

With all the substandard coupons we have seen I should be used to being disappointed in these meager coupons–but I’m not!! If it was investment grade–then maybe 4.875% would be right–but they fall short of investment grade.

Oh well–it is what it is and my simple answer is –NO I won’t buy any.

The pricing term sheet is here.

Thanks SteveA for being on top of this one.

Replay–Snoozers are Losers–Gabelli Comes a Calling

Reader JDubs has just pointed out the trading halt and subsequent confirmation that numerous Gabelli CEF preferreds are being redeemed.

This is hopefully not a big surprise to readers as we covered this a month ago—here. Everyone had ample time to review their holdings and unload them.

Here’s is the scoop–

Gabelli Dividend and Income 6% (GDV-D) will be redeemed on 12/26/2019.

The press release is here.

Gabelli Equity Trust 5.875% (GAB-D) will be redeemed on 12/26/2019.

The press release is here.

Gabelli Multimedia Fund 6% (GGT-B) will be redeemed on 12/26/2019.

The press release is here.

Since the announcement came at the end of the day there will be some blood letting in these issues tomorrow morning–assuming they trade. If they do not trade holders will have to wait 5 weeks to be spanked.