A Snoozer of a Day

Wow it is really quiet in the markets today–it almost seems too quiet.  Our giant ‘master list near new lows‘ (within 1% of new lows)  shows only 5 issues today–and 2 of those issues are baby bonds that mature this year–which will keep them in the $25 area.

The 10 year treasury has moved in a 3 basis point range and is unchanged.  The DJIA and the SP500 have moved in ranges of less than 1/2% and remains near unchanged.

In the preferred stock and baby bond arena there is little movement–the vast majority of issues are in the plus/minus 25 cent area with just the usual suspect of PG&E issues bouncing a buck higher–probably on the lawsuit which was filed contesting their upcoming Chapter 11 filing.

We always love ‘calm’ days–but this one ‘feels’ (a scientific term and method) different.  There are way too many potential market movers out there to not be leery of a ‘event’ occurring.  Of course I am guessing we have removed one event from the near term horizon – higher interest rates.  The fear of higher rates is gone–rightly or wrongly.

We continue to watch the markets for potential bargains–most of which have disappeared, BUT the Brookfield Property REIT issue (BPRAP) remains in the $22.75 area which is a 7% current yield and we will likely buy a little more yet this week.

4 thoughts on “A Snoozer of a Day”

  1. John K Cal

    I have a significant position in BEP and have been adding on dips. I have had a position for many years and have been pleased with my investment.

    A couple of points about their business.

    The TERP acquisition will make them a major player on wind energy and (surprising to me) utility based wind energy is very competitive with natural gas on a price basis.

    Hydro is best viewed as a source of power that is available when needed. BEP has managed to generate peak rates for their power transmission, even during seasons with drought conditions.

  2. I agree, Tim. Outside of adding a modest 13 shares of MTB- at $1003 yesterday to my bloated position, I havent done anything. And especially comparing MTB- in terms of credit quality and yield it is superior to the new JPM issue. And allowing for fact it goes exD in about 2 weeks its yield for my tax purposes is equivalent to a non QDI preferred of 7.02% with exceptional high credit quality. Of course I liked my pre Christmas steal purchase at $955 (thank you Inspbudget) but that was good fortune. I am very fine buying at par also here.

  3. Tim,
    Rida et. al. gave BUY BPR (common for the preferred all under the partnership BPY (K-1) around new year. This time, they got the timing correctly, it seems.
    I was waiting for the price to drop on BPR; it dropped only a little. I have a very difficult time to pull the trigger. Samuel Smith at SA suggested BEP, renewable energy, in the same play as PEGI. After some search, BEP was a BUY way back by RIda (worst time for BUY).
    I went through just the headings of Samuel Smith’s article, he seems to get the BUY point correctly on most of his picks. Bought 200 shares of BEP, unloved by FIDO analysts proforma yield of 6.9+%. Does require K-1 with increasing dividends yearly. Large cap with large debt load, debt was rated as IG according to the author. The Earnings Call, available at SA seems decent with long contracts, nice and boring.

    1. After turning 60 a year ago I must have hit some stark realization….”no time to let a crappy market environment work itself out.” I had bot PEGI, MIC, TEVA, T after their crash at the bottom and a few other issues. I have the learned demeanor to step in as a contrarian, but the work out time has been LONG. Many of these companies have continued to cram their balance sheets too. Luckily, some dividends were continued and for me selling and rolling short term covered calls over and over out just beyond the carrot has been very good in a sideways market. I am moving the carrot in closer now that there are some decent gains and will be happy to let all my straight equities be taken out to a satisfied option buyer. I consider the management time and lock-in risk too much for me now. An option premium is a lousy cup of coffee during a prolonged downturn.
      I think the moral of the story is to keep learning and feel your way into and master ‘new-tricks’. The Ring Master used to be the skilled trapeze artist who knew when to move on. The Myth of Stocks is a powerful story until you retire. I see people flooding into Tim’s (a Ring Master) arena here and elsewhere. I smell the usual over at other sites….mostly hope and a good story.

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