Common Stock Chat

This page is set up for those that want to chat about various common stocks.

There are no rules–other than the usual–no politics.

356 thoughts on “Common Stock Chat”

  1. HASI is down 8.5% today!
    Any news?

    HASI has been described on SA as a hybrid mREIT / BDC that finances renewable energy projects.

    1. HASI’s been in a tailspin for the last month or so losing almost 30%, so it’s just another day for HASI today….. just one of those way overbought in the greenie revolution stocks that now seems to be coming back down to earth….I’ve been following it, but not buying it……

    2. Greg–wow that one has been hammered down since Novembers high in the 64.00 area. Don’t know what is up.

  2. RILY down 9% today…. Anyone see any news???????? All I see is maybe in sympathy with Goldman Sachs worse than expected earnings out today

    1. And RILY continues down- had a feeling it might- could still go down to fill that gap-up around 65. Might add to yesterday’s buy- have done well trading this and gathering those big specials.

      1. Well- it blew thru the 65 this morning, a just over 64 ! Seems to be turning up
        for an hr in the 66+ range.
        Still no real neg news-

    2. Riley is buying m & a firm Focal Point for 175 million, which is less than 1/3 Riley’s quarterly revenue. Riley oversold? Still up a Hair from 6 months ago. Nibbling here.

      1. So far RILY has blown through its 200 day moving average and its 50 week moving average in this sharp sell off. If it closes the week below $68.64 there’s more room to go before reaching the 20 month moving average at $54.66.

        1. Again I need that crystal ball. RILY was below $50 last January so yes there is still room for it to drop. Notes are doing ok. RILYO only dropped dividend amount at ex-dividend Jan 12 and is up since then.

  3. My Top Stocks for 2022 –

    EOG EOG Resources Inc Energy

    Everyday WTI is above $45 the printing press goes Brrrr.. Shareholder friendly dividend raises and special dividend returning cash to share holders.

    MS Morgan Stanley Financial
    MKTX MarketAxess Holdings Inc. Financial

    Thesis is simple large dividend raises supported by cash flows. Two extremely powerful forces for stock appreciation.

    BMY Bristol-Myers Squibb Co Healthcare
    GILD Gilead Sciences, Inc. Healthcare

    Beaten up drug manufactures that have growing cash flows and dividend raises. These could potentially continue to trade flat.

    LHX L3Harris Technologies Inc Industrials

    Shares many traits with LMT.

    Z Zillow Real Estate

    Recent closing of the iBuyer platform has caused market to re-rate company. Overall my take was they de-risked removing capital/people intense process from the company that put them at odds with their primary clients relators.

    CMCSA Comcast Corporation Communications

    Streaming wars are ongoing with recent disposal of assets by AT&T industry is re-rating remaining competition potentially causing a buying opportunity.

    BAH Booz Allen Hamilton Holding Corporation Technology
    CTSH Cognizant Technology Solutions Corp Technology
    ACN Accenture Plc Technology

    Contractors make the IT business go round. With businesses choosing to explore cloud and cloud like technologies these providers will become part of their ongoing expenses.

    KLIC Kulicke and Soffa Industries Inc. Technology

    Thesis resolves around ongoing chip shortage. Supplier of fab products within the Asian area which is growing with government supplied support.

    COIN Coinbase Global Inc Technology

    Thesis is simple revenue resolves around trades. Trades occur due to volatility. No greater volatility occurs anywhere else than digital coin assets. Trade costs are unregulated.

    BLL Ball Corporation Consumer Discretionary

    Stable container business with space aspirations. New cheap reusable rocket technology will enable more space missions creating a demand for their mission capabilities. (Aggressive buy backs and dividend raises are a secondary value proposition)

    Personal account long term positions (BLL, ACN, CMCSA, MKTX, Z, CHTR)

    Arbitrage Plays:

    LBRDK – Holds Charter shares that are undervalued. Merger with Charter to release value.

    AMBC – Mortgage insurance provider that has an outstanding claim since 2008. Claim award worth 3x asset value of entire company. Will cause immediate accreditation. (recent development is court date booked. As it’s an in person court date this could get pushed to next year due to covid).

    1. I’ve had my eye on COIN. COIN (Coinbase Global, Inc) is an interesting company. It’s up over 5% today as NYC Mayor says he is converting his paycheck into crypto coins via Coinbase. Seems that the crypto fans think the mayor is a crypto expert. If it makes sense or not there is potential with COIN as long as cryptocurrencies remain volatile so COIN can collect there fees and as long as competition doesn’t get too bad.

  4. Franchise Group has a qualified 7.5% preferred FRGAP, trading above par at ~7% or so. The underlying common FRG has recently been rallying, up on a big dividend increase (+67%) , upped guidance and a projected 1/3 cut in debt by 2022 year end. Yielding about 4% forward even after its recent 10% one day jump. DYODD.

    1. Thanks Bear, took a look, think the opportunity in the commons may have left the station. In FRGAP since IPO and holding.

  5. DCRC a SPAC is going public today with its first acquisition of Solid Power.
    New symbol will be SLDP partnered with SK of Korea who is currently supplying Ford with EV batteries
    Both Ford and BMW are invested in SLDP

  6. FIZZ has announced a $3 special dividend. Stock is trading around $51-52.

    I bought puts at $50 and sold calls at $55 to fund most of the cost of the puts, and bought the stock to grab the dividend. Very rare to have a guaranteed profit regardless of what the stock price does. And another benefit is that while the special dividend will go to people who own FIZZ as of the 13th, it won’t be paid until early next year, so you get the expenses of the options you buy this year, vs the income from the dividend next year.

    You might be able to buy it clean without the options and come out better, but I am not familiar enough with the beverage business and you never know when the market will tank so I took the guarantee and just made it a larger position. Not bad for only having to hold the position a week.

    1. Sometimes options get adjusted down after a special dividend. Might that be the case here?

          1. Looks like I have learned something which — is odd since I had this same technique work out with no adjustment just last month with another company.

            Will the adjustment come after the announcement (which has passed) or after holders become eligible to be paid on the 13th?

            Judging by my purchase prices I might still come out OK, just have to do a little more trading if I want to maximize my return.

            1. It depends on the amount of the dividend, they are not always adjusted. I have played that game as well very successfully. I do now know the rules of when they adjust vs not. I used to do that with OKE, option expiration would be on ex-div date and it was easy money. I stopped as it took too much to find.

              That large of a div will probably be adjusted.

  7. Judging by the price action Friday its obvious to me my purchase doesn’t qualify since it doesn’t settle until after the 12/6/21 cut-off date. I like BSA too. With the likelyhood of a call in place its been holding up very well in this volatile market and assuming it is called there’s already 20 cents of accrued dividend so we’ll make a few steak dinners.

  8. Does anybody follow BSIG???? I don’t understand why it’s down 8% today to 27.75 when they have a tender going on for 42% of the outstanding shares that expires at 5 PM on Monday…. The tender is at 31.50. Anyone got a clue what’s going on? I own BSA but not BSIG.

    1. I took a “gambling” position @ 27.13. Analysts predict 2021 eps of 1.36 and 2.19 for 2022. The large increase is evidently due to the buyback. So, at 27.13 BSIG sells at a 12 1/2 forward PE – cheap. I’ll have this on a short leash. I’m encouraged that it closed above my purchase price and was over 27.60 in afterhour trading. Seems BSIG is overall “in favor” so I think its a fair bet it gets close to the tender price again.

      1. Thanks for your thoughts, Joel H – out of curiosity do you know whether or not you qualify to tender the shares you bot or do they not qualify for tender because they settle after the cutoff date? If they do not qualify, maybe that explains the large drop… and yes, I see where BSIG’s price pre-announcement was just about where it is now, so that does make sense.. RE: BSA- with its BA1/BB+ ratings (QOL has not updated) and 2031 maturity, it seems cheap at $25 especially given BSIG in the last CC implied they will announce a call sometime after the completion of the stock tender and before the end of the year.

    2. 2wh – another thought on BSIG. Seems to me that the very large buyback might be the first step in taking the company private? If it is, buying at 27.00 is a slam dunk. Your thoughts appreciated.

      1. GRj- you might appreciate my thoughts, but my expertise on a matter like this is pretty much meaningless, cause me no gots…. Having said that, yours is an interesting and logical thought given how they’re downsizing so drastically…. Your thought could also be confirmed by their expected call of BSA subsequent to the tender for BSIG. There is language in the BSA prospectus that would require them to make an offer to purchase BSA at 25.25 in a change of control event which includes “the consummation of a so-called “going private/Rule 13e-3 Transaction” that results in any of the effects described in paragraph (a)(3)(ii) of Rule 13e-3 under the Exchange Act (or any successor provision).” I have no idea what Rule 13e-3 actually is, but no reason to suspect going private doesn’t mean going private in the sense of tripping off this requirement… So using proceeds from the sales that are funding the tender to also call BSA in anticipation of going private does make sense as a precursor….

  9. HOOD
    Anyone watching this? Been steadily going down hitting lower lows for days/weeks on end now.

    What’s really interesting is Cathie Wood has been buying daily non-stop. At first in the $7M-10M range. But recently as HOOD crashed through the $30 handle into the $20’s; she is now buying in $20M/$25M daily chunks for at least two days straight.

    Remember when no one wanted TWTR, SNAP, etc. and the stocks plunged into what appeared to be oblivion? At some point we could see a similar setup with HOOD if it gets low enough.

  10. T
    Year-end selling pressure can some times present opportunity. Just wondering if anyone has AT&T on their nibble list soon? Clearly folks are extremely frustrated with the still lack of dividend visibility post spinoff. I don’t see any alarming trades with AT&T bonds.

  11. BSIG – Is anyone following the tender offer Brightsphere is doing for their own shares???? They are having a fixed price tender for up to 41.2% of their outstanding shares at $31.50. I noticed because they’ve also said “We also expect to fully deploy our excess capital in this fourth quarter which will likely involve paying down $125 million of our retail notes [aka BSA] and repurchasing more than $1 billion of our shares which will collectively generate significant earnings accretion while reducing leverage, The tender is somewhat complicated by the fact that in sense 25% of the shares they are going to buy are guaranteed to be tendered by Paulson & Co who owns 25% of the outstanding… With this tender ending on Dec 6, BSIG is still closed today 30.40….. Is that an opportunity or am I missing something? Buy BSIG and tender….. Worst case is you end up with shares after proration if any that should benefit greatly from the accretive effects of the tender itself….. Win win???

    BTW, the quote is from the quarterly CC

    1. The question is what does the stock do once the tender offer is over? Does it fall back, or soar ahead? The only formula I can find for offering a fair price on a tender says that those who hold the stock after the offer will come out ahead given this particular tender price. But if you look at the option pricing, everyone is betting it falls back some afterwards.

      I have zero experience at this so I looked at how to hedge my bets with option plays and they all come out about break even.

      I made money on the XLRN acquisition, but not a lot because I overbought downside protection thinking if the deal fell through the potential gain was worth more than than if it went through — but in either case I was guaranteed to make money. So I ate into my profits a little with two downside options for each 100 upside shares. Can’t complain. But I don’t see an equivalent play here from just a quick look. I will have to think about it some more.

  12. Southwest Gas (SWX). Icahn has offered to purchase shares for $75 and SWX management is against it. Stock is currently under $70 and my cost is in the $50’s. It sounds like Icahn can do better and he is fed up with mgt. Of course if I sell, I’m out but maybe that’s not a bad thing.

    Any words of wisdom would be appreciated.

    1. Kitti – Since I’m only here to help, I offer up these sage words of wisdom from Capt. Beefheart: “A carrot is as close as a rabbit gets to a diamond.” 😉

      1. Kitti – I bought IEP (Icahn Enterprises) about 6 months ago as I figure Icahn (or his son who is likely to take over eventually) have more savvy than I do and privy to a lot more information.

    2. Its pretty much impossible to find 5% IG (BBB+) on the street. Would ride it till you get taken out.

    1. Yuck… Just your imagery, let alone the content in the article, makes me gag. It reminds me of that part of rush night for my fraternity in the 60’s that I feared the most….2 or 3 pledges were to be put in a toilet room (not a full bathroom – just a toilet and sink with room for one person), door closed, each with a cigar not to be let out of the room until the cigars were butts… I could handle everything else planned for the night, but I absolutely dreaded even the thought of doing that one… Fortunately, I was out of town with the track team that night and never had to go thru rush… I never would have made it.. lol

  13. Anybody else involved with RIV’s rights offering???? I’m hearing shares showing up in broker accounts as early as 2 days ago at some firms, Has anyone had their shares alotted yet? I own RIV at TDA and so far, nothing except an isolated line identifying the awarded shares by a number.

  14. Looking at OHI, Omega Healthcare Investors Inc. Trading at a 52 week low, yielding over 9.3%, 6.82 B Market. and makes $$$. I owned some shares years ago and sold. Have not followed the company in a long time. Anyone care to share their thoughts?

    1. David, suggest you do a deep dive on OHI before buying. I owned it in the past, but sold all shares this summer. Covid issues have caused occupancy rates to drop to approximately 75%, several operators have stopped making payments, dividend not increased in 2021 (ended 18 year dividend increase streak). Unless things improve it will be difficult to maintain the current dividend and a reduction becomes a concern.

    2. Like Medical Properties Trust, Inc. (MPW) much better wait until trading above 5.59% yield.

    3. David — I agree with LarryL, the company has troubling issues: Guardian Healthcare makes up 3.7% of OHI’s portfolio, and has stopped paying rent; Agemo is 5.5% of the portfolio and didnt pay rent from August through October; Gulf Coast Healthcare, 3% of OHI’s total rent, hasn’t paid rent since June and has filed for bankruptcy. Verify that info for yourself but I’m avoiding this one right now.

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  16. Does anyone here have thoughts on FIS or FISV? Both look attractive to me after their recent price drops. Now that IPLDP and every other reasonably attractive preferred I own got called, I guess I’m being forced to add more commons. Thanks!

    1. Recent sell off in card / payment processors has occurred over the last month. Target price provided by Morningstar. Analyst Upside guestimates provided by yahoo finance.

      FISV Fiserv Inc Target: $119.00 Discount: 16.85% Analyst Upside: 31.75%
      FIS Fidelity National Information Servcs Target: $142.00 Discount: 22.76% Analyst Upside: 32.01%
      GPN Global Payments Inc Target: $179.00 Discount: 35.82% Analyst Upside: 52.43%
      V Visa Inc Target: $215.00 Discount: 1.27% Analyst Upside: 30.44%
      MA Mastercard Inc Target: $337.00 Discount: -6.74% Analyst Upside: 21.61%

  17. Major XLRN shareholder is not tendering shares for the buyout. They hold about 7% of the shares. >50% is needed to close the deal.

    I bought when it was back closer to $170 and bought a Put at the same time in case the deal does not go through. The outcome seems binary here with either the deal going through at the offer price of $180, in which case I make a little even after the option cost, or the Put protects me on the low end and I will make a lot if I can dump the shares before they bottom. There is a lot of room there for it to fall back to $120 or so. But I don’t expect it to go all the way if there is still hope of a deal on different terms.

    Anyone see a better way to play this?

    1. Noticed ORI popped c. 9% today, some of us were discussing it when they paid a special dividend recently. Pretty impressive.

      1. I made money around the special dividend time with the stock, dividend and some option plays. I still own my shares, but got caught carrying some covered calls when it popped today so I will not get the whole “pop” if it stays up until the strike date.

        Not complaining though. I have made very good money on ORI this year.

  18. DOW has hit a 5% Dividend Yield with the sell off today to 56. There is concern of natural gas supplies may hurt earnings. Seems like a good initial entry point. It goes ex-dividend 11/29.

  19. I own a full position in Verizon, and am happy with the 4.7% dividend ($2.56 per year). Recently added to my position with the common dropped to $52.16. Trying to determine if I will add more as the price continues to drop–currently at $51.05. But concerned as to why the price is dropping. Anyone have any insight as why the price has dropped approximately 6.5% in recent weeks. Target price is in the $56 range.

    1. Vz is a solid mature operation that is low growth ~1%. At $53-54 you should expect 15% return. It’s not a name I would expect anybody to pay up for given its predictable low growth.

      Not of high interest in an equity portfolio.

      1. If I expected a 15% return, I would consider the stock to be of very high interest in an equity portfolio.

        Micahc….given that you have little interest in an expected 15% equity return…what return do you expect from the S&P 500?

        1. S&P500 long term return has been ~10%. I’m expecting zero or negative real return on the S&P500 for the next year. Inside the 500 components are always bargains to be had.

          For equity I’m looking for 20-30% return rates as you are exposed to the highest amount of risk.

          For instance I really like (ATVI) Activision Blizzard, Inc. but at $65 based upon current 6% growth I will only receive 13% return (bit better than market). So I would need further discount of $48 (18% return) to purchase.

      2. Most of the investors on this website are looking for stable income. I have a portfolio mix of a variety of investment types, the vast majority of which provide a steady, recurring dividend (BB, preferreds, CEF’s, equity, MLP). A low growth, high quality stock (i.e. Vz), with a 4-5% dividend meets my criteria for investment. My target annual dividend return is 6 to 7%. As a retiree, I am not looking to hit 15% home runs. But, very satisfied with singles and doubles.

      1. Sold the rest at 11.65…could go higher, but market is weak. Should be some go replacement candidates.

  20. Z= Zillow
    One more week in NYC and we are driving back to FL.
    We were looking for a broker to cut his commission on our co-op sale.
    So, me and the missus spoke to my brother and his “Eccentric Genius” kid.
    The Genius said “Zillow will replace R.E Brokers in the future”
    Then my wifes ear perked up. Should I buy it now? Everyone answered “YES”.
    Does Genius own Z, yes at 30 something, Then my brother eviscerated his wife for letting Z go to the 200’s and not sell her shares.
    So my bitter half picked up 100 shares at 89.20 yesterday.
    What do you say?
    Is Zillow going to be replacing RE Brokers?
    Me, being cautious, hope to buy 500 shares on the next big drop in the market.

    1. You may be on to something there Newman. I get the sense the real estate industry is undergoing a sea change. It first became noticeable when I was working as marketing manager for Sotheby’s Real Estate brokerage in Santa Fe back in the ’90s. It appears to have snowballed since then. Why hassle with RE agents when Zillow, Redfin, Offerpad, et. al. will make competitive, as-is purchase offers with very little negotiation in a short time frame? Simply based on the innate laziness of humans in general it seems like a sure-fire business model to me.

      1. mikeo:
        Yeah, every high margin service is targeted by technology.
        Who remembers Travel Agents?
        It will take 10 years or more till 75% of brokers are no longer needed.
        In my case, our co-op is worth maybe 475, but with broker fees and co-op fees we would be losing 10-12%. Ouch.
        Intuit is another disruptor that disrupted bookkeeping and tax software.
        Electric cars and their components are obviously the future too.
        Good luck.

      2. Wall Street Journal had a good article on Sept. 20 about realtors fighting to protect their fees. I haven’t used a realtor in years to buy or sell. I use Redfin for my searches to buy and a real estate attorney for the contracts. If I’m buying and they’ve built in a partial commission the buyer has to pay (yes, that’s a thing now) I take that money as cash back from seller at closing or I don’t make the deal. You’d be amazed at home many realtors refuse to show you a home — or go to contract — unless you have a broker. (There’s a way around that, too). Realtors are obsolete. You can do your own research and hire an attorney for less than a grand and save a ton of money and hassle.

    2. The way Z butchers the description of my house and the inability to get it straighten out with them, I sure hope not….They identify 3 separate houses as being located on my 10 acres. They’re almost as bad as the appraiser (sorry, Tim) who couldn’t even properly identify my house’s nearest cross road or which side of the Tennessee River we’re on…And how you call a French Country house a Cape Cod is beyond me. So much for my copper gutters too – they’re vinyl now according to the appraiser and the slate roof is composite shingles. I could go on but it’s all off topic venting..

      1. Buyer beware, might be Zillow that my son and his wife just got scammed on. Person listed a rental that they said that they had to move out of state due to a job transfer, but wanted to keep the house as a rental. They went and looked and it was vacant and they got excited at seeing it as rentals are scarce around here. Person asked for a first, last and deposit to be sent to them and they would arrange to send the keys. Wife went to the bank to get the cashier’s check.
        Only thing that saved them from a unhappy ending was teller refused to do it. After hearing wife’s story the teller said she just lost about $2000 00 in similar scam. They contacted Zillow to get fake ad taken down don’t know if they ever did

    3. Zillow just started a home buying service in 2021. Why don’t you get them to buy your NYC co-op?

    4. Two things I noticed about Zillow, at least in the area I live. 1. The estimated home values on my block are highly inaccurate. My neighborhood has houses small to large, very different styles, age and condition. A difficult task for a computer to analyze. 2. To buy one of the houses up for sale you are directed to a Real Estate agent in most cases. In my town at the moment 53 Zillow sales are through agents while 3 are sell by owner. So for now most sellers here prefer the convenience of using an agent. Typical of our culture now – convenience rules.
      Also there are other services that do the same thing Zillow does like,, and others.

    5. RE market is typically very illiquid with some homes only getting bids every 90-100 days. With the introduction of iBuyer platforms (Zillow, Redfin, Offerpad) act as market makers providing liquidity. This creates a marketplace to bring in the flippers, agents, and eyeballs but it does not make profits with sub 2-3% margins.

      Marketplace is tantamount to creating network effects (think facebook) bringing in advertisers (marketing), data selling, and bolt on acquisitions or cross selling (think instant mortgages) creates future flywheel effects.

      Underlying this trend has been private equity which has been mopping up inventory and warehousing it since 2008. (American Homes for Rent, etc, etc)

      Larger network effects generate larger profits while keeping the maintenance capital flat to down (software companies do not require higher maintenance costs as computers and automation perform the work of new employee).

      Bullish Zillow.

    6. Be careful on Zillow. They own a ton of houses in a bunch of overpriced markets that they are taking a pretty good loss on when they eventually sell them.

  21. I picked up some shares of food branding giant Conagra (CAG) near the close yesterday ahead of their earnings announcement tomorrow morning. The current yield is 3.65% and the stock goes ex-div Oct 29th. The company raised its dividend last quarter and is expected to report good results. I’m playing the bounce up from earnings with the possibility of collecting a dividend payment if the momentum lasts and the market cooperates.

  22. I see my FPI preferred shares are now converted to common as per the redemption notice (208 common per 100 pref)
    Now question is do I keep common as inflation hedge (ie. higher farmland values) or look for another pref . Will likely do a little of both. Always remembered as a young banker a European farmer telling me that he only invested in farmland – reason being – Hitler’s tanks rolled thru his country and destroyed everything but at the end of the war farmland was still there.

  23. Good days for Williams WMB. It paid its quarterly part of 6.2% last week and today it is up 5%. News has been good recently but I don’t see anything regarding today’s jump in price

  24. IEP – 16% yield. What uniquely jumps out on this one is that Icahn owns 95% of the float and he takes his distribution in stock; so cash-wise, they have more than enough to cover the other 5%.

    If you look at technicals; thought I’d add some context:
    Stock price though interestingly telling a potential different story as it hovers near 52 week lows.

    Stock had two double tops in $77 handle; one in 2018 and one in 2019.

    The stock made a double bottom; one in 2016 and one in 2017 that lead to a big run. The current test here of the 52 week low could effectively be a double bottom being completed.

  25. Dutch Bros Coffee (BROS) opened at $32.50 this morning after being priced at $23. Its currently trading near $38. I tried placing a pre-market order with Merrill at $23 but didn’t get filled…their IPO club is small and I’m not even on the guest list.

    1. Step right up and pay 10 million per location. Even if they double in size next year that is 5 mil per! Starbucks is only approx 4 mil in 2020. Insanity. Wait 12 months and buy bros for 10.

    2. Citadel West: Not sure what they put in their coffee, but one opened up near me (Calif. coast) and the lines of cars are really long still. There is a Starbucks across the street with about 1/4 of the business. Lost on me though, I like Peet’s Coffee and sticking to it 🙂

      1. Dutch Bros sells a lot of energy drinks as well as coffee, and their drive thru business model has popular appeal. Their stock has energy as well, up 18%+ today alone.

        Peet’s is a good brand and it trades on the Amsterdam exchange.

  26. PCF – High Income Securities Fund announced Rights Offering – dated Sept 10th

    I suppose this should be in the CEF category but since it looks as though there hasn’t been a post there in 2 years, I’ll give a try here instead – anyone involved in this one??? They just announced the terms on a previously announced Rights Offering The rights are non-transferable and the ratio is 1 right for each share owned…. That means if all rights are executed the fund will double in size AND the day after the rights offering closes, they’ll essentially could have a fund that will be 50% in cash…. Owning the rights give you the ability to put in for an unlimited amount of additional shares if available from others not executing theirs. And if that’s not enough to cover all the demand, well, no problem, PCF has the right to issue up to 200% more shares above what”s offered in the RO….

    PCF is a Bulldog Investors, Phil Goldstein, managed fund… They do SPE as well…. Right now, PCF is trading at about a 6.50% PREMIUM to NAV. The subscription price for the shares to be issued will be equal to the LESSER [emphasis added] of 95% of (1) the net asset value per share (“NAV”) on the trading day after the Expiration Date or (2) the volume weighted average market price per share for the three consecutive trading days ending on the trading day after the Expiration Date, provided, however that such amount shall not be less than 85% of the NAV as of the close on the trading day after the Expiration Date.

    My question is shouldn’t PCF, in reaction to the RO trade down from here dramatically? When the RO has the potential to make the fund 50% cash when the post offering NAV is calculated, how can this one stay trading at such a high premium to NAV? They do offer a high managed income dividend that gets recalculated annually at end of the year based on its then NAV, but that’s going to be happening shortly after the rights offering closes (October 22) so the fund is almost guaranteed to have a high percentage of cash as part of its NAV…..

    I’m surprised the price held up today…. I feel like I have a full position on PCF right now, so I sold about half of what I own to make room for shares I expect to buy back thru the rights offering…. We’ll see how that works out…. In the meantime, I’ll lose 2 dividends of .078/share I think (maybe 3?) for the time I’ll be out – Any opinions anyone???

    1. Great plan. rights offerings are a way for the fund manager to shore up or grow the NAV but are often dilutive.

      Expect a share price decline after dust settles.

      Would say it’s also a warning sign if done too often in the case nhf or riv.

      1. Micahc:

        Seeing many rights offerings in the closed end fund space lately. Looks like closed end fund managers want their piece of the pie by increasing fund sizes and generating higher management fees, no matter how much it hurts current shareholders.

        I owned one (ticker FINS) from Angel Oak that was a great little fund that mostly invested in community bank debt that paid a 7%+ yield.

        FINS recently announced a dilutive rights offering and the fund’s price has already been hit by 7% in a week. Sold much of it before the hit. If it is a quality CEF, they usually bounce back after all the dust settles.

        1. They are broadening their charter to include a wide range of investable options also. Possible manager overreach just when the game is already a spec? More bang for the leverage?? See their site/announcement.

  27. I rarely venture into the IPO market, but the upcoming public offering of Dutch Bros Coffee has gotten me excited. As Peter Lynch famously said ‘invest in what you know’, and this Oregon based company has got great products, great service, an easily expandable drive-thru business model, and legions of hard core fans (known as the Dutch Mafia). Their offering date is Sept. 15th and they will trade under the symbol BROS on the NYSE.

    1. Their coffee isn’t very good, but the drones out here love the Dutch regardless. Kind of a Ben n Jerry’s thing before they got sold. They have a small drive up model like the really old In n’ Outs that had no dine in service. This is really annoying because the cars stack up and block access to the street and other stores. The land lots they operate on are too small for the number of cars that are waiting. It causes traffic problems and angry drivers.

      This isn’t the first coffee place around here to go public. The other one that had WAY better coffee was Coffee People. They went banko after going public. The founders still have a coffee shop in NE and still still sell the Black Tiger coffee. They make a milkshake with the Black Tiger beans that is soooo good.

      The other coffee franchises have been popular were Seattle’s Best that got bought by Starbucks. Another local yokel coffee company, Boyds, was recently sold to some conglomerate (terrible coffee).

      1. Lines of cars waiting to get served at Dutch Bros is a fairly common sight in the Portland metro area. They must be doing something right because they have a huge base of loyal customers, and the drive thru model seems to be quite popular.

        1. CW:

          Not to go too far off the topic of investing, but I will never underestimate the devotion of the citizenship to lousy coffee. Starbucks, Dutch Bros, Dunkin Donuts, etc. is all crap.

          I switched to an organic roaster many years ago that has dedicated his life to finding organically-grown beans in all parts of the world that support small family farms. Sells his product at very competitive prices. Check it out…incredible coffee.

          1. Rob…with all the extra stuff people put in their coffee nowadays I’m not sure the quality of the coffee even matters. But those added flavors and toppings turn a $1 dollar beverage into a $5 dollar beverage, so as an investor I’m not complaining. Dutch Bros has 13 locations currently in Las Vegas, and I’d expect that number to grow after they go public.

              1. Dutch Bros coffee is ok…my wife likes their flavored teas and chais. I’m not their best demographic (too old, too cheap) but I like their business model.

                1. Ha ha. Yeah, I’m too cheap too. You can buy Seattle’s Best and brew it yourself for $3.98 for 12/oz bag. It’ll last a week and I drink the stuff every day.

                  Sisters Coffee from Eastern Oregon sells their product at Grocery Outlet for $5/lb when they have it in. They make an excellent product, but retail is over $10 lb!

                  Selling coffee is BRUTAL in the NW. Many many many competitors with high quality product. There is a Bikini Barista right down the street from me. It’s kind of a Hooters of coffee, but I have never went or lOOked. Well maybe a quick lOOk. Ha ha.

                  Franchises from around here haven’t done so well going public. I mentioned Coffee People, but another favorite was Macheesmo Mouse. This was a Chipotle style fast food that was ten years ahead of it’s time. Lines out the door every time I went for lunch, but alas they want BANKO as well.

    2. I love Dutch Brothers, discovered first at a kiosk in a parking lot near my motel in Eugene some 20+ years ago. I am eternally grateful to Dutch Bros. for cluing me in on how to make good coffee at home. (I grew up on diner coffee.)

      My home brewing has been in crisis since Seattle’s Best Decaf Organic Twilight disappeared after the merger, with Whole Foods decaf Sumatra whole bean a current favorite. No more Starbucks, too burny. Seattle’s Best Portside 3 and Cafe Bustelo, with its Cuban / Miami flair, are my budget choices. When I sample, I cut with chicory if a coffee is so so.

      FWIW, I found some really good coffee in Portland around ’92, heard of an IPO and got the prospectus. It popped and I skipped thinking they’d drop. And so I missed Starbucks.

      For a more sublime experience, I use Celestial Seasonings decaf Green Tea softened with a delicate White tea, but this is a coffee post, isn’t it?

      1. BearNJ:

        Forget about those decafs you are consuming. Very harsh chemicals used to create those products.

        Dean’s Beans does it the right way. Their decafs are incredibly robust.
        Remember, drink deep!

        Decaf Coffees at Dean’s Beans:
        A note on Natural Water-Process Decaffeination.

        Instead of using harsh chemicals to remove the caffeine from the coffee beans, our coffee is decaffeinated simply using water, in a gentle eco-friendly process called the Natural Water Process. The beans are soaked in hot water for a designated period of time, and the caffeine leaches out.

        Then the solution is passed through a carbon filter that catches the caffeine particles, but leaves the water, oils, and flavors to be reabsorbed into the beans. You are left with a 99.9% caffeine free bean, without sacrificing great taste or adding unneeded chemicals to the environment and your body!

        1. Thanks for the link. I may take a bite if only because I missed Starbucks.
          A few observations. Nothing really alarming.

          – This is a kiosk-type retail business so it may be difficult to increase same-store sales. There is just so much demand for coffee to go in a trade area.

          — Over half their sales are in the 9 am to 4 pm time slot, which surprised me. Customer demographics: 72% age 16-35; 67% female.

          — A lot of DB’s growth seems to be coming from adding new stores.

          — Same store sales held up well in 2020, but can they hold on to that business post-pandemic. i.e., if you’re going to DB because its outdoors and safe like the bank drive up window what happens when the local Starbucks / bagel shop / pancake house opens up indoors full blast.

          — Coffee prices are volatile and currently up. Price / margin issues.

          — Their decaf is whole bean, making them a virtuous company.

          – – Adding stores in more densely populated states may be difficult. Nothing drives the local zoning board crazy like traffic stacking.

          — Mostly franchised, 264 to 200, but moving to company owned. Pretty weird looking numbers because of this, apples to oranges. More revenue out of the owned stores, but franchised stores look more profitable. (Owned stores have overhead. Franchise stores produce franchise fees. ) Franchisees are required to buy official supplies, like napkins and cups, a potential area for future disputes.

          — Company owned stores leased rather than owned,

          — Offering is dilutive, existing shareholders are in at ~$2.50, new buyers are in at ~19. They paid out a $200 million pre-IPO dividend and expect to get $140-190 million from the IPO. Nice work if you can get it, IMHO.

          — Multiple classes of stock. One has to swim through the family business verbiage to find this: “Our Sponsor is a leading private equity firm focused exclusively on the branded consumer sector.” And will own a chunk of our stock after the IPO.

          — Like every retailer, much talk about “Our people are our business.” There was one college kid in the kiosk I visited long ago. I suspect he’s long gone. IMHO, employee turnover is a big problem in retail. Great service is not unique to big chains with training programs. FWIW, the local bagel shop knows my order too. Sometimes they tease me by having my order ready on the counter before I park.

          Just my opinion.

          1. Thank you for confirming what I had thought. This is literally Coffee People 2.0. I found some articles about Coffee People when they thought they were going to be #2 behind Starbucks and they actually had GOOD A** coffee.

            “Jim and Patty Roberts founded Coffee People in 1983 in an old house on Westover Street in Northwest Portland—it was Coffee Man for 8 years before that—living upstairs above the cafe they founded.

            At its peak, Coffee People had more than 40 locations in town, serving up Black Tiger shakes and Velvet Hammer mochas, going public in 1996 with the goal of being No. 2 to Starbucks. But the business crumbled instead, and they were forced to sell.”

            “The Robertses sold their caffeine kingdom in 1997, after nearly 20 years of stoking Portland’s java junkies with Black Tiger Espresso and Jimbo’s Hippie Cookies. They made their coffee strong and kept their business mantra simple: “Good coffee. No backtalk.”

            At the top of their game, they were minority owners of 40 Coffee People stores and Motor Mokas in the Portland area. In their quest to become No. 2 to Starbucks, the Robertses went public with their company in 1996 (after a local offering in 1995), then expanded to Denver, Chicago and southern California. According to Jim, the empire collapsed when “business just didn’t ramp up fast enough.”



    1. Me like ENB and their staggered reset prefs. Then USD denominated CN prefs (four) are all below par and yielding well until reset, the V issue resets right after the midterm elections, 01-23, as a spec on a higher reset rate from today? Either way let it ride or called?
      The options stay cheap though. They have managed thru some recent issues well.
      Take a look at their foray into European wind. They are NOT thinking or a small start, but using their large scale expertise on large scale projects. Euro energy costs are already high. My niece in Italy will not even roast a turkey or run the dryer because of energy costs. That leaves a lot more room to compete with new, long lived wholesale projects. It nicks many green checkboxes too.
      I think 9 billion people are going to want electrons, even if it is just to get to their wallets,

      1. Joes, A – which are these CN Preferreds you mention for ENB? Are these Canadian preferreds? If so, what is tax implication for US taxpayers?

        I only see ENBA a fix to float 6.375% coup that is first callable Apr 2023.

  28. Any thoughts on QPFF American Century Quality Preferred ETF? Actively managed, 4.8% SEC yield, about seven months old but only 540,000 shares issued, low trading volume and only $22 million in investments. You can see the dilemma…is this ETF going to survive or be closed down eventually for lack of interest? Top ten holdings are reasonably good but like any ETF contains some holdings I wouldn’t personally buy. As an income investor this would be a buy and hold for me.
    Current share price is $41.69

    1. Preferred market typically has large mispricing which can be captured by an active manager more effectively. (FFC/FLC/PFD) One of the best managers has been Flaherty & Crumrine.

      ETF/Index wrapper is about purchasing the lowest fee. (PFFD)

      Own none of these products.

      1. I agree with micahc. FLC is my largest holding in both my trust account and my Roth Ira. It has a long history of being well managed. It is currently selling at a premium (+3%). But, current price is the lowest it has been in the last 3 months. FFC is pretty much a mirror image of FLC.

    2. On the plus side QPFF has a decent expense ratio (.32%), and holds a number of issues not readily available to retail investors. However, the ETF was just launched in 2021 and doesn’t have a market selloff track record to examine. If your objective is income, I’d say there are other choices including some term dated new issues.

      1. Richard, I like the research you have done here. Find out how much of that Dividend is return of capitol. If they are not able to invest the capitol to make the dividend then its basically the snake eating its tail.
        The capitol goes down then the dividend gets reduced. read some of the older articles by Stanford Chemist over on SA

  29. FAT Brands decides to buy Twin Peaks. This sports bar restaurant is much better known for its scantily-clad waitresses that all look like models instead of its “scratch-made food and signature beers.”

    Anyway, looks like $50 million more FATBP 8.25% preferred is going to be issued to close this deal. FAT seems to consistently issue new shares of this preferred – they treat it like a never-ending bank account.

  30. Hurricane Ida has affected the oil industry in the gulf causing major production shut downs, Any monkey throwing darts can pick a company that may profit from this.
    But considering Holly Frontier’s refineries are located farther inland they will not be affected. HEP
    Course 2 edged sword, higher crude prices affect margin but people need fuel and are willing to pay higher prices

  31. Clear Secure, Inc. (YOU) – re-opening speculative vaccine passports.

    No high conviction investment thesis developed.

    Government has an overwhelming need to put a vaccine passport system in place forcing the hand of the fence sitters and anti-vaxers.

    1. The government has an overwhelming need to fulfill its totalitarian agenda/mission.

      I think ticker (YOU) should focus on their work related to picking out the bad apples scurrying through the airports or deployments of buses in the cover of darkness, but that would counter the narrative and likely harm their eligibility for NIH grants.

  32. FEYE (software)and OSCR(health insurance) re: Insider buys
    I mentioned FEYE on 8-11 after an insider buy at 16.92.
    I made a bit and got out. FEYE dropped down again.
    Then more Insider buy on 8-20 at 16.94. I bought at 17.27 and got out near 18.00.
    Now there’s another insider buy on 8-27 at 18.64.
    I may sit this one out.
    The one that got away is OSCR. Huge insider buys ($7 million dollars worth) on the 24th. It had closed at 12.40 the day before but opened at 13.10 and didn’t move much higher.
    Another buy was filed 8-27 for $6 million
    Joshua Kushner was a big buyer,
    Something is in the wind. is where I get the info.
    I hope to buy OSCR pre market Monday.

    1. Newman, you might be making something on OSCR but I read past articles on SA and what I read didn’t sound good. It had backers like Google and Fidelity management Research etc. But I wonder if the lockup period for the original investors and employees ends or has ended.

    2. OSCR – If the largest (UNH/ANTM) most efficient operators are experiencing mid single digit operating margins. Technology does not fix industry profitability.

      Easier money riding the CVS price rollercoaster.

      1. In reply to Charles M. and micahc,
        I rarely get into due diligence on these companies.
        The Insider Buyer (officers only) knows more than we do.
        The buyer expects to be rewarded at a later time.
        My posting of Insider buys is to let you guys watch how I trade.
        Picking the wrong Insider Buy would upset me.
        But, I have my filters set up to determine candidates.

        1. I just bought 400 shs of each stock
          OSCR 14.60 and FEYE 18.80.
          I don’t like my buy in price, but it’s done.

        2. thank you Newman for your postings and continuing to post. Good luck to everyone this week

  33. GPN – global payments network

    Recently has had a fall from grace after ripping the cover off the earnings ball.

    Questions remain can the company grow revenue/cash flow without issuing debt and shares like it was 1999. Even in the ever crowded automatic payments marketplace.

    With an extremely high 20%+ long term growth rate you will be betting on this road runner out accelerating Wile E Coyote of the debt market.

    I’ve always like plumb crazy purple adding to my existing position.

  34. Redbox “IPO”
    Completely flying under the radar here but Redbox is going public again imminently via SPAC merger. You can buy in now at trust value “par” for $10 under ticker SGAM.

    Apparently they also launched Redbox TV with a whole bunch of streaming content that is retro programming and new.

    1. Theta…the only reference I’ve found to Redbox at SA shows its ticker will be RDBX. Does owning the spac SGAM give you rights to purchase Redbox at IPO?

      1. no, purchasing SGAM is the equivalent of owning RDBX shares when/if the merger is complete. Read up on SPACs to get an idea of how the mechanics work.

      2. Citadel – Upon merger completion / post-SPAC if you held an existing position in SGAM beforehand, the symbol will change to RDBX in your account. Same concept/logistics as to when you buy a newly issued preferred via OTC and then it gets listed shortly down the road under a different symbol.

        1. Theta, I see backers in the spac are LionsGate and Legendary Entertainment, and Thunder road films. All good production companies in the film business. A Lot Better than Chicken Soup for the Soul. Last picture they were part of had Bruce Willis and even with him it was a stinker.
          Used to rent a lot from Redbox but their content went downhill, always a bunch of slasher and horror flicks for rent,. Think of them as the Papa John’s or Papa Murphy’s of the rental business. Lot of discounts and 2 for 1 to get you to rent. Might be good for a quick flip, but I see its already dropped a couple times below IPO price in trading

  35. Started a position on Friday for BABA (alibaba) which is the Amazon of China after its precipitous drop. High regulatory risk exists as recent drop caused by new rules introduced just this week. This company firmly belongs in the high risk bucket as another 15-30% drop is not unthinkable.

    Have wanted to own Alibaba for a very long time its very hard to find companies with 30% annualized growth rates trading at over 25%+ return rates

    In my view it was inevitable for the industry to become regulated to protect consumers. Worst case scenario is nationalization. Reasons against it would kill the Chinese growth narrative (American dream equivalent) and the source of national pride it feeds.

    Instead of a single stock risk you can buy the industry under ETF KWEB.

    Not advice to buy or sell just my personal opinion own shares in BABA.

      1. Provided an employee an advance. She admittedly went long TSLA 700 calls.

        Box or Buggatti.

  36. CIO common is up ~ 30% in the after hours, based on news they are selling a large holding. They have one preferred outstanding CIO-A which is callable on 10/4/21. I assume this large infusion of cash increases the odds the preferred is called then. Possible action if you own the common and/or preferred. The preferred is trading with a negative yield to first call. If you owned it @ today’s close of 25.76, you would receive about 25.41, thus lose about 35 cents a share. Since the first infusion of cash does not occur until December, the preferred might not be called until then in which case it trades at close to break even. We do not own the common or preferred, but if we did I would be hitting the sell button ASAP.

    News release:

    City Office REIT, Inc. (NYSE: CIO) (“City Office” or the “Company”) announced today that it has entered into definitive agreements to sell all of its holdings in the Sorrento Mesa submarket of San Diego for $576 million. The transactions are expected to generate net proceeds, after estimated closing and transaction costs, of approximately $546 million, which equates to $12.38 per common share. The properties to be sold are unencumbered by debt.

    The sales will be completed pursuant to two separate agreements. The northern portion of the portfolio is scheduled to close in December 2021 for $395 million. The southern portion of the portfolio is scheduled to close in February 2023 for $181 million. City Office has the ability to accelerate either closing date to align with redeployment opportunities. Both sales are subject to customary closing conditions.

    1. On second thought, I just bought a few shares of the common. CIO claims their NAV is ~ 24.00, which if correct, it is a screaming buy @ 16.80-17.00. I am betting it will op higher Monday morning.

  37. NTDOY/NTDOF – Nintendo has no debt. As no one is in front of the common would equate it as a bond equivalent. Recent earnings show a post covid slowdown in hardware/software purchases. Given return to previous 5yr trend growth 6-7% with 1.5% buyback this is looking cheaper than BABA levels.

    Even when you take all alternative revenue streams and just zero them out to simplify it still looks grossly cheap. Is the market expecting a gaming winter post covid.

    Will be initiating a position and forgetting about it for 10yrs.

    1. Interesting idea. Any idea what happened on Tuesday? Single-day crater, then right back to where it had been (week chart looks like a gap-tooth smile).

      1. On Aug. 5 Nintendo released Q3 earnings which fell by 7% vs Q2. Dividend is variable based on 33% of consolidated operating profit of the six-month period by the total number of outstanding shares.

        So you have 2 things hitting at once but a 14% drop on an already inexpensive stock due to 7% Q on Q revenue decline seems excessive.

        Management also provided conservative guidance that revenue post covid would contract.

        In comparing market competitors that have debt:
        Nintendo 12 P/E
        Activision Blizzard (ATVI) 28.33 P/E
        Take-Two Interactive Software, Inc. (TTWO) 31.50 P/E
        Electronic Arts Inc. (EA) 34.28 P/E
        Tencent Holdings Limited (TCEHY) 21.46 P/E

        My conundrum Nintendo either is more cyclical than a chemical producers and riskier than Chinese companies or their competitors are priced for perfection.

        1. Household name that I have never looked at. One is the ADR I gather and the other an OTC ticker. Is one better than other and what accounts for the price difference?


            1. At TDA, the ADR shares show a dividend. The ordinary do not. Does one pay and the other does not, or is that just an oversight on TDA?

              Generally speaking, is one share class better than the other? I have watched Vestas Wind Systems (VWSYF / VWDRY) for a long time and they have a similar setup, although both show a dividend. ADR shares play at a slight discount to the ordinary and dividend is less.

              1. How could the ADR pay a dividend if the underlying shares do not? It is a flow through security after the depository takes its cut. Liquidity, taxation etc are all considerations when choosing one over the other

                1. Good question mcg. Fidelity and TDA both show the last dividend paid on the ordinary shares back in 2018.

                  I guess I need to do a little more research. does not have an investor relations page and Nintendo Japan is written in Japanese….

                    1. I have traded this many times over the years but recently stopped out and locked profits in low/mid $70’s on Nintendo. Couple quick caveats:

                      *Dividend is paid once a year and who knows what it will effectively be. So the current 4.34% I see populating on many platforms is not something by any means to factor into taking a position.

                      *This stock historically is a classical cyclical/predictable beast. I trade this in the same manner as I do say coffee. $55ish handle has a good amount of support hence why it got a nice bounce recently. Next strong support stop is $50.80ish and from there you would need a giant gap fill through entire $40s with $41 being the floor there.

                      Kudos to OP for a timely thread where many folks were pounding the table this stock was going to $100. However the charts and money flows told a much different story. Even ARK got this one right and was dumping millions of shares all through $70’s.

  38. ORI will pay a $1.50 special dividend in October, paid $1 last year IIRC. Record date is 9/15. Presently yields c. 3.5%, trading under recent highs.

    1. D, have owned ORI for a long time and it has proven a good, reliable dividend issue. Love those special dividends. Paid on 10/6.

      1. I’ve also been in and out over time in an IRA, thought of taking profits on half after ex-div end of the month but will hold for the special.
        Also opened a position in a non-qualified acct. last year when it dipped under $15, waiting till it hits cap gains status.
        Been making a little money trading TGT and WHR lately, if anybody has any suggestions.

    2. ORI has paid out $4.50 in special dividends since 2018. Including a total of $2.50 in 2021 CY. In April/May 2020 the price dropped as $14+ and has risen to $25.+ A SOCK drawer stock for me.

    3. I have been in and out of ORI for decades – mostly in. Great investment. I recently (as in this morning) exited above $26 (seemed wildly overvalued), but will be back in again.

    4. Thanks for this heads up.

      I bought some for the dividend, plus I sold calls on it thinking it would go down after the ex-dividend date and made about $0.30 extra per share that way. Would have potentially made more, but they were exercised early.

      Well over 7% from holding a couple of weeks is a decent score right now, so thanks again for the actionable info!

  39. FEYE
    Fireeye insider bought $439,868 worth of stock
    Filing was today at 5 PM and appeared at 7:09 PM on Fido.
    It closed at 17.64 today
    I haven’t played IB in a while so I bought a few hundred shares at 17.87 3 minutes ago.
    I don’t know the company’s products
    But it’s good to play these again. I am 8 out of 10 in gains when buying it right,

    1. FEYE,
      I just sold all.
      A steak dinner for 2
      But then, QOL emailed me for a donation.
      So, now it’s a steak dinner for 1.
      Being cautious, I only bought half what I would normally buy.

  40. Did anyone else trade the HOOD IPO?

    I picked some up at $38 and sold September $70 strike covered calls for $15 when it was going crazy. If I want to roll those to 2023 I can pick up another $13-$14/share if things open like they closed last week.

    I haven’t had a score this good since after the market tanked and we got to ride the elevator back up.

  41. NEWT – I wonder what this would mean to the notes? NEWT looking to convert to a bank holding company…. If it loses its BDC status, does that mean the preferreds no longer have the mandated coverage required for BDC preferreds???

    Newtek Business Services Corp. Signs Agreement to Acquire National Bank of New York City

    Acquisition will be Discussed during a Shareholder Conference Call Tuesday, August 3, 2021 at 7:30 am ET

    BOCA RATON, Fla., Aug. 02, 2021 (GLOBE NEWSWIRE) — Newtek Business Services Corp., (Nasdaq: NEWT), an internally managed business development company (“BDC”), today announced that it entered into an agreement to acquire National Bank of New York City (“NBNYC” or the “Bank”), a nationally chartered bank with approximately $204 million in total assets and $36.5 million in tier 1 capital (each as of June 30, 2021; does not reflect the impact of pre-closing dividends to selling NBNYC shareholders) for $20 million in cash (the “Acquisition”). The agreement requires that NBNYC have $20 million of tangible common equity as of the closing date of the Acquisition. The Acquisition is part of a plan to reposition Newtek as a bank holding company, and is subject to the approval of, among others, federal banking regulators and the U.S. Small Business Administration (SBA), and Newtek shareholders to withdraw Newtek’s election as a BDC. Upon shareholder and regulatory approvals, and other closing conditions, Newtek will become a bank holding company that will elect financial holding company (FHC) status. Newtek anticipates the Acquisition to close in approximately six to twelve months.

    1. Sorry – I meant NOTES, not preferreds.

      The obligation of the Company to consummate the Stock Purchase is further subject to additional conditions, including (a) NBNYC’s tangible common equity equaling or exceeding $20,000,000, (b) NBNYC’s equity-to-debt ratio as of the Closing equaling or exceeding 10%, (c) there having been no material adverse effect with respect to NBNYC since December 31, 2020, (d) the written resignation of all of the directors of NBNYC if requested by the Company, (e) the Company’s having obtained shareholder approval to withdraw its election as a business development company under the Investment Company Act of 1940, as amended, (f) the Company’s having completed a refinancing of its outstanding notes, including the elimination of any provisions relating to the Company’s election to be treated as a business development company under the Investment Company Act of 1940, as amended

  42. BMTX – Has anyone who acquired BMTX shares as a spinoff from CUBI successfully had the restricted status of their shares removed by your broker??? If so, which broker???? Both Fidelity and TDAmerica have so far refused to lift the restriction despite my confirmation from BMTX’ CFO and from their transfer agent, Continental Stock Transfer & Trust, that the restriction was removed on July 1. My phone calls to both Fidelity and TDA have so far amounted to nothing and even though I have given them the direct contact info at Continental, I cannot get either to tell me definitively that they have been in touch with her directly as Continental has requested they do.

    If this continues, is this an issue for FINRA? Surely there must be SOP for this to happen for all clients collectively at a broker all at once, yes? How can some brokers release the restricted shares while others have not?

  43. I’ve seen recommendation here of Pembina pipeline; their acquisition of inter line is being terminated. Pba up today.

    1. Pembina gets a termination fee equal to 65 cents/share.

      Beyond that, incredibly short sighted of the market. Pembina is close to a table pounding buy but requires patience. Most long lead time businesses do.

      In the short run the market is a voting machine. In the long run it’s a weighing machine. Graham said it in 1934 and it’s still true.

      1. Not interested in a pile of BipBamBum in a stock exchange for IPL at their inflated market prices. Money for nuthin’ and the cashflow for free.
        Remember poison pills?
        PS: Hold that PBA and other big CN oil is low priced too! Spin the wheel Vanna and take the prize.

        1. IPL management incredibly bad as they turned down a buy out years ago for a lot more than $20, just blew $350MM by gambling and with Heartland took on too much debt which lead to being bought out. I have both Pembina and BAM and at least with BAM much better management will wring out a lot more profits from IPL assets. CDN energy companies coming out with quarterly results over next few weeks and should be very positive news for most.

          1. I am sympathetic to IPL. The fickle finger of fate was unkind to them. Had I been their financial advisor I would have urged them to they lay off some part of the Heartland risk. It was a big fish to swallow.

            BAM can get blood from a stone. IPL is low hanging fruit in their eyes. They turned a bankrupt Brazilian utility into the foundation for an empire.

            Stay tuned. They are eyeing Pembina for the future.

            1. Bob I know you follow hockey so you will get my analogy. When I was working for a bank in the early 1990’s in rural southwest Ontario (outside of Sarnia) there was a common joke at the local farmer’s coffee shop that if the “Hunter brothers” were looking at bidding on a local farm you might as well put your cheque book away. Mark & Dale were both still playing in the NHL and their off season was spent farming their many many acres of cashcrop land around Lambton County. In this case BAM is the Hunter Brothers when it comes to any potential sale of a company in Canada.

  44. OMF declares $3.50 special dividend
    on top of the regular .7 dividend

    they announce these every 1st an 3rd quarter

  45. BMTX – For those who may have acquired BMTX shares via having owned CUBI and receiving them when it was spun off via SPAC, IR has told me that the trading restrictions were removed a/o July 1… The trouble is both Fidelity and TDA don’t seem to know it yet… I will try to get the ball rolling today..

    here’s IR’s response:

    “The restriction was lifted on July 1st.  You should be able to trade or transfer your shares freely.  If you have any issues I would start with your broker, and direct them to Continental as our transfer agent (Continental Shareholder Services, at, has been prepped for assisting, or if ready to transfer, you can reach out to Continental’s Transfer Department directly at



    Bob Ramsey
    Chief Financial Officer

    BM Technologies, Inc. (NYSE: BMTX)




    1. As a follow-up, I am getting nowhere with both Fidelity and TDAmeritrade in getting this restriction lifted on BMTX. I have given them both the information necessary, but apparently I have not found the right person at either place…. If anyone else can find a way, I have been given this information from BMT transfer agent as to whom the brokers need to contact:

      “If Fidelity and/or TDAmeritrade have questions on the process they can contact our Transfer Department directly at or myself and we will be happy to assist them in retrieving the shares held in their firm’s name.


      Continental Stock Transfer & Trust

      Erika Young
      Vice President & Account Administrator
                 P: 212.845.3218        M:  646.335.3493
                 A: 1 State Street 30th Floor
                      New York, NY 10004-1561

      Apologies for the frustration you are experiencing in regards to your shares.  As Mr. Ramsey indicated, upon the Company’s written instruction to Continental the restrictions have been removed.  Upon the removal of the restriction, unrestricted share statements were mailed to EACH of the Participant Level named holders making them aware that the shares were now unrestricted.   In many instances, statements were mailed to the main Brokerage HQ address on file, therefore, your individual Broker’s may not have received it directly.   Unfortunately, I can not speak to the notification process in place at TDAmeritrade or Fidelity, however, other Brokerage Firms have consistently reached out before the lock-up was lifted for updates as well as reached out to us upon receipt of their statement and requested that their shares be moved back through DTCC, for further distribution to their underlying holders.

    1. Not very common for preferred issues. My royalbank, cibc, and sunlife preferreds can drip reinvest into the common stock automatically if you have drip setup on your overall account.

  46. FWIW – I have been trying to buy DENI for about a month now. I had a limit order for $10.81 set to buy. I looked this morning and it was trading at $10.80. No limit order execution so had to do market order at Schwab that filled at $10.80.

  47. From the just too cheap to ignore category:
    I’m buying WHR here at 207. P/E under 10 (!!) and a yield of 2.7%. I like value stocks here, and this is now my favorite.

    1. Bought more WHR today at the same 207 price. Earnings out tomorrow after the close.

          1. Me too. Was watching WHR but didn’t pull the trigger Monday. Took profits on TGT last week but didn’t re-enter on Monday drop – been in and out twice this year for gains. Ditto AB, which actually has a serious dividend. Can’t catch every cab. Added pieces to a couple of banks instead. Keep posting, we are reading.

        1. Exited the remainder this morning with 5% profit. earnings were good, but Mr. Market is fickle.

      1. Nice earnings!. Market yawns AH.

        Whirlpool Corp. late Wednesday reported a 32% increase in quarterly sales and said it was raising its 2021 guidance on continued demand for its kitchen and laundry appliances.

        Whirlpool WHR, +1.91% said it earned $581 million, or $9.15 a share, in the second quarter, compared with $30 million, or 47 cents a share, in the year-ago period. Sales rose to $5.3 billion from $4 billion a year ago.

  48. Got a tiny bit lucky at the casino last night.
    Maybe my luck has changed for the better.
    I’m going to try to press my luck.
    I just bought 600 shares of REVG at 16.19 at 9AM today.
    It’s my usual Insider buy game.
    I better get a Chicken dinner out of this.

    1. Yay, I’m out and I squeezed a steak dinner out of this stock.
      I did look at the company news for 5 minutes and they seem like a rising star.
      A good start for this week.

  49. Got the tip 5 minutes ago
    AEI huge insider buy (possibly a SCAM stock)
    I bought 250 shs at 5.63 a minute ago
    What the hey?
    Let’s see if I get lucky today.
    Looking for a steak dinner for 2-3

    1. I see this on Big purchase by the CEO two days ago, two smaller purchases yesterday. $4.90 and $5.02.

      Good luck.

      1. I sold half at 5.43 for a$25 loss
        still holding the other 125,
        Chinese stock, say no more.
        Looks like I treated someone else to a Pho soup.
        When it started to go down, I started talking Chinese like words.

        1. All out. A $70 loss for my troubles.
          This was not a desired outcome.
          Boredom got the better of me.
          Well, It’s back to nickel stacking.
          My wife said stop griping, move on and check out Viking River Cruises.

    1. I was able to dump my remaining shares for a profit. Not really a steak dinner but more like a large pizza and a pitcher of beer.

  50. I was just calculating the return for the MSFT acquisition of NUAN. It is pretty impressive so I thought I would pass it on. I doubt any of us can move the market on this one! MSFT is paying $56 cash for NUAN. It is scheduled to close no later than 12/31/2021 per the latest press release (Q2 NUAN earnings). With NUAN trading at 52.9, that is a 10% IRR and a simple 5.8% return. Pretty nice and fairly low risk. I have been parking money in that.

    IMO pretty low risk, but check it out.

    1. NUAN is trading below Microsoft acquisition price. I am purchasing as better return than bank account interest.

  51. HTSC
    My kid said buy it and don’t ask questions.
    I bought 5,000 shares at .16

    I normally am very skeptical.

      1. I know.
        My Investment is 825 or so.
        With the bubble expanding rapidly, What me worry?
        I am the one who did not invest in Tesla pre IPO.
        So, culda wulda shulda could be my epitaph.
        My wife’s would be. “I’m with Stupid>>>>”

        Ironically there are 2 Human White Roses in my office.
        Just happy to be alive and kicking my friend.

      2. 2WR, You can laugh at me now.
        As I’ve mentioned in the past, We have a eccentric genius in our family.
        I was texted at 4:10 PM yesterday to buy CVCN.
        I was told their drug for Alzheimers was superior to Biogens drug.
        It closed at 3.15
        But in extended hours trading it climbed to 3.37 to 3.46 and I was told not to pay more than 3.35. I didn’t pull the trigger.
        Well, lah Dee Dah it’s 4.22 now. Anyways, I wuz only planning to buy 500 shs.
        The company has a stock offering and the officers bought a boatload of it. It may mean they are diluting the shareholders while enhancing their share.
        My family member then said “Wait for the next one they said”
        I feel like the sleeping old man in the 3 stooges pie fight episode who gets hit with a pie and sleeps through it.

        1. Not at you, Newman, with you… I’m still watching HTSC just for kicks to see how you do… loved your story there….

          1. I will not tell you about yesterdays new “missed opportunity”
            I feel like I was visited by what they call a “Cooler” in Las Vegas.

    1. Newman, A couple of steak dinners or HTSC. Rumor has it that too much red meat is bad for you…………..

      1. I still am not doing research on HTSC
        But, I prefer to lose $400-$600 rather than being pointed out as “Poor Dad missed out on the big bucks”
        Every kid needs a parent that has their back unconditionally.
        This was my way of saying. I respect your opinion.

        1. A quick look at the stock does not support a buy. Nickle mining might be a long play for auto batteries. But, with Reddit / Gamestop / AMC, and the fact that I am sitting on a lot of cash, what’s a few hundred dollar gamble.

    2. newman,
      I bot a thin sliver in Organigram with some IRA divs since it was supercheap and BTI had previously plopped funds and board members into it. Of course they are going to buy out the whole company…right? Was able to sell close in calls a few times, but even that can’t catch more than a nickel bid now. It is fun to go onto their site and follow the evolution of this market though after living thru the seventies!

      1. They make THC edibles?
        I don’t have a high opinion on Cannabis stocks.
        Too many Ma and Pot startups.
        TCNNF makes Truelieve Chocolate. Wink Wink
        But even their stock chart is a downer.
        That’s a hard PASS.
        Anyways, I’m here in NYC for 30 days, and already spotted John Bolton in Lenox Hill. (UN is in session) He walked into the Korean shop where I put my order in for Chicken spicy Ramen soup.
        What was the question again?

  52. Looking for “relatively” safe places to earn a decent return I took a look at some merger-arb ideas. Two interesting ones turned up:
    MSFT buying NUAN for $56 cash, currently trading at $53.18 gives a 5.30% return till expected 4th Qtr completion.
    LMT buying AJRD for $51 cash, currently trading at $48.50 gives a 5.00% return till expected 4th Qtr completion.
    Obviously there is always risk deal falls through or is extended, but these two looked attractive to me.

    1. Chris – In this area of pure arbitrage, if looking to participate while minimizing the specific issue risk of trying to pick individual situations on your own, have you looked at funds like MERFX or GABCX who focus specifically on this area? You won’t get 5% but then again, the risks of timing properly and avoiding individual deals falling apart is left in the hands of the pros.

        1. I just looked up MERFX on TDA. Under “trailing total returns”, if I am understanding the information correctly, (I am assuming the “TR” behind S&P 500 means total returns) then an S&P index fund would have vastly outperformed MERFX over all time periods. I think I’d just stash money in VOO or VTSAX or similar. In fact I do have some money there…..

          It seems a tough place to make money, even for the professionals, because once the info becomes public, the market has already reacted and all the arb value is gone. I just saw that with the O / VER merger. Someone’s probably making money on it…. Early investors and VC’s I guess, but even MERFX doesn’t seem to be knocking it out of the ballpark and this is what they do for a living.

          Or, am I missing something?

          1. Mark – Let me ask you a couple of rhetorical questions…. #1, Would you be willing to put your “safe” money into an index fund even though they have outperformed practically every other category of fund over the years? #2. Is there a place in this world for money market funds or alternatives to them? Certainly you won’t find a single money market fund competing performance wise with an S&P Index fund, yet there sure is a whole lot of money sloshing around in them… There must be a raison d’être for trillions hanging out in money market funds even though they too can’t hold up vis a vis your comparison standard.

            The point is MERFX is not designed to be a performance fund… It’s to provide steady, reliable gains that surpass what you can earn in a money market fund or its equivalent.. An Index fund is great and certainly outperforms so many other categories of funds as to be embarrassing to the fund industry as a whole, but still, if the market goes down 20% your Index fund will too… An MERFX will not…. some of we belts and suspenders types like that kind of thing…… The bottom line is a comparison of MERFX to an S&P Index fund is an apples to oranges one… They are not designed to do the same thing. it’s a Safety Joe Fund –

            1. Very funny…..I’m not sure what I was expecting Safety Joe to be but John Prine wasn’t even under consideration. I noticed he died of the CoronaVirus of all things.
              But back to your rhetorical question two….like many people I have a fair amount of cash sitting in Money Market accounts earning nothing. That I
              ‘m on this blog is also an indicator that I own Preferreds, ETFs, Dividend Paying Stocks, Canadian Rate Resets and Corporate Bonds. But I’m still 40% cash. I do it for safety because there is nothing about America that inspires confidence at any level. But I’m curious….is there any other possible reason that you’ve come across?

    2. Was just looking at the announcement and saw something that concerns me (although I may not properly understand it.

      “As part of the transaction, Aerojet Rocketdyne declared a $5.00 per share pre-closing special dividend to holders of its common shares and convertible senior notes, on an as-converted basis. The special dividend will be paid on March 24, 2021, to holders of record as of March 10, 2021. The payment of this special dividend, unless revoked, will adjust the consideration to be paid by Lockheed Martin to $51.00 per share at closing.”

      Does this mean if the special dividend is paid (which it was), that LMT will adjust their $51 offer? Again – I am probably misinterpreting this but wanted to raise it up.

  53. AGNC the big REIT has been making highs of late and just reported earlier today with a beat making further new highs in AH. It pays dividend monthly and goes ex-divd 4/29 and yields over 8%.

    Took a position in the common via a BuyWrite – this enhances the yield to over 10%. Perhaps a better buy to do this instead of buying its 6.125 or 6.5% coupon preferreds? Aim to keep selling in-the-money calls till assigned, especially around the monthly ex-dividend dates…

    1. mSquare – Seems like a lot of work as you need to write the call several times per mo for like $1-$2ea, with the risk that shares will either be assigned, or even worse, they aren’t assigned, and the underlying share price gradually deteriorates so the CC’s and divies are merely chasing your cost basis. Then you’re in the awkward position of having to write a covered call at a strike that is less than your cost basis for the shares. Furthermore, you’ve probably noticed that the bids tend to evaporate for a strike more than $0.50 above the current share price with the AGNC option chain.

      If you’re looking for 10% from commons in this sector, why not just buy NLY common?

  54. I opened a position recently in VERX. It’s a company that makes sales tax software who IPO’d last year. About half of the Fortune 500 use Vertex’s software. It’s quite an effort to change software providers so it’s rather sticky. Just curious if others here have looked into it.

  55. I recommended VIAC here last year in the mid 20s. It’s now approaching 100. No, I don’t hold it anymore….I sold way too soon. Believe it is roaring because of excitement over the new streaming service….Paramount Plus. I wouldn’t touch the stock here. I’m sure subscriptions are doing very well, but I believe that is due in large part because the service is being heavily discounted or even given away. Checking an entertainment board I frequent confirms this; also that customer service is difficult to reach.

    The tell on this stock will be when the company announces spectacular subscription growth but suspiciously low revenue and earnings.

  56. For those of us who are too stupid to realize that it’s different this time and stocks only move in one direction, here’s an interesting chart of historical P/E ratios for the S&P…… no reason for concern, though, everything’s as rosy as can be…

    1. I find it interesting, too, that all the wildest gyrations have been in the last 25 years.
      When did MMT / QE become the fashionable monetary theory? When did retail trading become popular? When did the internet really become ‘a thing’?
      Is it natural that the P/E should rise as the money supply increases?
      Should this be used as another gauge for inflation?
      Just thinking out loud.

      1. It’s pretty transparent: It’s a fact that this is a social democratic institutional maneuver, ALL parties and political minds have been complicit since Reagan…corporate is still seen as the method of management and distribution for the mechanism…the plebs just get an occasional check to feed corporate trickle down. Don’t worry, Everything is VERY EASY to manage.
        Since we are in the common stock area, I have had at least ten issues hit high sell limits and/or get called; one in Canada and I am thinking two more there soon. What to do with the cash? I had pivoted toward accenting cash on cash returns with cash covered puts on exhausted quality stocks (TOT, BMY here?) and this is getting tougher off the March lows, will end too and rolling close calls with managing divs on those owned. EPD is going to be interesting here since it goes xdiv Thursday and option expire on Friday….very close on my strike. Really, I DO NOT need the excitement or drama, but am just responding with tools I know. My Roth is crowded. and I DO NOT really like the risk. Seems this is like the 60’s?, grind off the residual debt from WW2 on a new generation, but at a much higher valuation and overall debt level.

      1. My guess is U2 WILL probably be next to sponsor a SPAC – if they haven’t already… lol

  57. Fastly (NYSE:FSLY) has priced $825M of 0% Convertible Senior Notes due 2026 in a private placement. The offering size was increased from $750M.

    The initial conversion rate is 9.7272 common shares per $1,000 principal amount of notes (~$102.80/share).

    FSLY currently trades at $67. Holders must be crazy bullish on this 0% note.

  58. NEE (Nextera) took a pretty big hit yesterday, at one point dropping just below $73. Part of the explanation is that now that the herd is risk on again that there is a sector rotation out of Utilities and into Finance and other areas. And then there is the issue of rising rates.
    I’m wondering if this rotation away from Utilities is a buying opportunity for Income Investors for solid, reasonably “Green” companies like NEE or AEP?

    1. I strictly follow the yields on my utility portfolio. As soon as the price drops enough to create an attractive yield I add. For example when DUK drops so that the yield heads above 4.5% I add. I have yield targets for DUK, SO, PPL, EIX etc.

      1. Don’t forget those higher short term yield convertables if you are cool holding the commons down the road. They are structured leap call options if held for non-trading. I had two snipped off with sell limits at recent highs after a couple divs: SO, D still have the AEP. I think there are a few more? They are being chased too.

  59. Anyone follow CRT, Cross Timbers Royalty Trust? It is purely a holder of oil and gas royalties. I’m thinking if oil and gas keep going up, this would be a direct beneficiary. Thanks!

    1. Want an interesting view on Am Royalties check out MNRL, decent management and focused on royalty sharing with equity. Best of the bunch in US in my opinion after researching them all. Do not own tho.
      I have owned two CNs royalty companies in my “sock-drawer” only payers for a very long time: FRHLF and PREKF, that are also available on US OTC. The fun part for me recently was that the confidence in their models and management (read: no hot rods) during the last year saw a HUGE price down and some prudent divy adjustment, but they kept paying, boom, boom, boom. I added a scant averaging down in the oil nadir last year. Now they have both reasserted strongly, are way in the green for me and I expect div increases back to their previous payout…or who knows maybe more. Just stayed with the plan. They use a payout ratio which is tied to oil prices realized, true royalties. Worth a look.
      Years ago, the Ontario Pension System tried to buy all of Freehold and that is when I began DD into these companies. Me love this method of their business models which need to be understood.

    2. CRT will benefit more if oil prices rise enough to overcome their share of operational costs (and deficit) in the 75% tier TX & OK acreage. However, I like SBR and DMLP much better. I personally don’t view MNRL as a comp for any of these.

      1. I would love to hear more about why you don’t think MNRL is a comp. I listened to the conf call and have reviewed their materials and bought some. I guess more importantly is your thought on those companies and the royalty play idea. Thanks!

  60. One of the people I follow is Michael Burry, he of Big Short fame. Because of the size of his holding he is required to file 13Fs each quarter. I would describe him as a value-based short/medium term equity trader. He does with equities what I think a lot of people here do with fixed income.

    Interesting, to me, to see what he moves in to and out of each month:

    I especially like the move into CoreCivic, as I did the same both on the debt and the common (through cash secured puts). There are lots of familiar names on the list.

    The inherent limitations on the data are 1) it’s 45 days old when published, so it’s yesterday’s news, and 2) short positions are not disclosed. But still, you can get a lot of insights into the thinking and methodology of a very savvy investor.

    The portfolio is concentrated enough to add some meaningful alpha but diversified enough that he isn’t crushed by one bad call. Like some of the jokers in the hedge fund business. I believe Burry is playing with his own money here.

  61. I was hoping to put this in the UHaul section as another possible alternative investment type vehicle, but that’s closed so this is the closest I can figure to be a near relevant area for this oddity:

    Every now and then I check out The Royalty Exchange just out of curiosity – I was wondering whether or not anyone here has ever had any real time experience with this? It’s a site where you bid on specified future royalties to come from music or movies publishing or performanc rights, etc… I wonder if one were to win one of these, is it as simple as just sitting back and letting the royalties flow in or does one have to be proactive in marketing what you’ve bot once you’ve bot it in order to be successful… for example, right now you can bid on rights for royalties from The Doobie Bros song, “Black Water.” It’s all’s spelled out in detail, but I wonder if John Q Public, who’s not a music insider, has a prayer of getting treated fairly if he owned any of these type rights? Great cocktail party conversation starter either way though, I suppose…. Can you really be the next Paul McCartney via this route? McCartney probably makes more from the various music rights he owns under his MPL Communications umbrella company than he does from the music he’s making these days..

    Here’s the Doobie’s info
    Yeah, I know far far off normal topics, but maybe it’s another UHaul type thing to do in a way….. kind of fun too..

    1. 2wr – I’ve not looked at that website but there are a number of music royalty companies out there some being quite large.

      Check out Round Hill Music Royalty Fund.

      1. Thanks, Bob – I’ll take a look…….. I’m not sure my interest is beyond curiosity but it’s worth investigating… Music is such an interest of mine I might as well check out income stream avenues within…

  62. JMP, Thank You Insider Cow for that.
    Insider Cow is a web site that lists all insider buys and sells.
    I have been playing stocks based on that strategy for many years.
    Alas, I don’t hold for long.
    I just my last shares of JMP 7:57 AM EST at 11.00 . (Bought Feb 2nd)
    SPLP also has steady Insider buys, but I bought preferred instead of common and that was a mistake. I will buy the common today because I see a Cup forming and hope the handle is way higher.

  63. Devon Energy — DVN
    I’ve been on a contrary streak lately, and even though the energy sector has fallen on hard times and is not much loved these days, I think there may be some opportunities here. One such opportunity is Devon Energy. DVN has recently completed it’s merger-of-equals with WPX Energy and the combined company appears to be on solid financial footing. What I like is the fact the company reports they can break even at $33 WTI and with oil trading around the $60/barrel mark DVN has plenty of upside IMO. So much so, they just declared a variable dividend of .19/share on top of the regular, fixed .11/share dividend, both payable 03/31 to share owners as of 3/15.
    Here is a link to a PowerPoint presentation outlining the company’s position and outlook.
    I invite your comments and observations.

    1. DVN has a history of chasing trends and not having the balance sheet to take advantage.

      This has allowed activist investors to take over.

    2. I’ve been in and out of several energy producers over the years, including the shales. I’ve made money on some and lost on others. Seems the totally uncontrollable factor remains OPEC. Despite a lot of discussion of OPEC being dead or nearly so, the Saudis can open or close the spigot at any time and it will affect your investment. With oil over $60 a barrel, it’s just a matter of time before the Saudis begin pumping more. Plus, DVN has had a heck of a run in the last six months.

  64. Any idea why CNIG is dropping so much today. Not a huge amount, but for being bought out a little surprising.

  65. Softbank (SFTBY) is up 8% today. Was it the increase in profits or was it that Softbank and Microsoft was mentioned in the same sentence in a headline? It doesn’t take much in this market to get stocks to pop or drop.
    Softbank invests in and sells new technology companies regularly. Winners exceed losers so It’s worked out in this technology growth market. Surprising to me is that it has a small dividend of about .5%. The CEO, Masayoshi Son, is an interesting guy and aggressive so I took a chance with a small investment that resulted in a 145% gain. At times there is negative press when some of its holding like Weworks has problems but those losses are covered by major profits with other companies. There’s growth potential in the investments it makes and it remains aggressive so I’ll hold and hope for the best. It’s hard to judge the value since they are constantly investing and selling.

  66. The proxy voting instructions I received for one of my holdings allows only a “For” or “Abstain” vote for the slate of Directors. Always in the past, I have been allowed to vote “Against” nominated Directors. I’ve never seen only choices “For” and “Abstain”. This is one time when I really do want to vote against all the directors, so it pisses me off that there’s no “Against” option, and just seems typical of this crowd of criminals.

    Anyone else seen this before?

    1. Do you own enough shares for it to make a difference? If not, I’d worry about something more pressing in my life.

      Also, why continue to hold shares in a firm run by what you discern to be a ‘crowd of criminals?’


    2. Many people abstain by not casting a vote at all, and one really can’t know if these individuals are just lazy/indifferent or if they oppose management. If you actually vote “Abstain”, you are clearly opposing the Directors.

    3. camroc, I’ve asked myself the same question and yes it’s past time to exit.

      af, thanks for the thoughts.

      Bob, thanks for the humour.

  67. RSS Feed –

    Just testing…. sorry but haven’t seen anything in past 3 hours…….that seems out of the ordinary.

  68. Thank you all for the wonderful education that you have given me , a lurker, for quite some time. I have been on this website a lot more of late due to the pandemic, so I thought I should come out of the shadows. I wanted to make sure that I was looking at CNIG correctly, since Grid has brought it up recently and since I have made a decent sized purchase. If I were to purchase more today at $23.75, I would receive $24.75 when the deal closes in the 2nd half of 2021, plus any dividends paid during that time, correct? Seems like a no brainer. Is there a likely chance of the deal with Argo Infrastructure not happening? Is there anything else that I am missing? Thanks again to all of you for the great education!

    1. Hey JTS, I bought a bunch of CNIGP which is the 1 preferred to 1.2 common stock convertible at $27.
      That makes the redemption cash in of it worth of $29.70. Im just sitting on mine….Your not missing anything. But these tend to sit where they are at waiting for approval. The market is going to give you a small bone here until merger is complete. However, you are taking the ~30% haircut risk if it doesnt go through…For whatever reason that may come upon.
      CNIG isnt going to retract as the “6 unit team” that owns well over half and is aged (along with Gabelli thrown in) already said yes over a few martini’s. But many unforeseen risks can occur thus why it sits below merger price.
      I can list several easy reasons why this will go through, but the unforeseen and regulatory angst if any, I have no idea which is the key in the end. Plus it could drag out longer than planned which ultimately shaves annual return down also. …. Its now just a modified version of picking up nickels in front of a steam roller… Keep your head up when bending over!

      1. Thanks Grid, that makes sense. I’ll sit tight with what I have and find other opportunities in the meantime.

      2. Grid, concerning CNIGP – when merger completes, does that mean our CNIGP shares get transformed into CNIG common stock at a rate of 1.2 shares for every CNIGP held?

        And if so, would we be able to sell on the open market, or will those shares be changed to those of the merging company?

        1. No, according to filings they get cancelled and pay $29.70. Just like the common gets cancelled at its buyout price (cant remember off top of my head what it is). But they all are getting cancelled as there is nothing to convert too since a private company would be taking it over.

          1. Thanks, so we will be getting cash of $29.70, plus any accrued dividends. Correct?

            Merger is supposed to complete in second half of 2021. I will sit tight on CNIGP until then.

            1. Yes, that is the plan…But… It involves two separate state regulatory agencies and one is NY. I dont know if their wheels are well oiled to move fast now. So these things drag out…Remember Exelon and PEPCO merger and how it dragged on and on and was cancelled and then on again? Oh and the painful part for us both…When we bailed on PEPCO the day before because it wasnt going through and PEPCO was going to drop like a rock?
              We lost our investing testosterone 24 hours before pay dirt and it cost us both a 30% windfall. You have probably got over it, but it still burns my rear.

              1. Wow, PEPCO – you did bring up a long forgotten event. Yes, it was painful at that time, but like you correctly said, I have moved on.

                Sure hope that this merger will go through and be complete as they say.

    2. JTS – Welcome to the wonderful world of low risk merger arbitrage because that’s what you’re looking at re- CNIG. Grid’s mentioned Gabelli on this one and they are big players in the field though from what Grid’s said, I think they were in CNIG before the buyout surfaced… What you’re doing is weighing the odds of the deal closing at 24.75 and/or closing on schedule and then deciding whether or not that’s worth the wait to get that price then or sell today at 23.75. That’s a pretty simple yield to hold date calculation if you throw in a guesstimate for actual closing date. Eyeballing it, I suspect a hold is a pretty good deal, especially with the risks of closing probably being quite low

      BTW, true merger arbitrage would include playing with vehicles that minimize the risks of the deal falling thru.. Simplest example would be when one public company buys another, the arbitrageur would buy the company being bot and sell the shares of the issuer based on complicated proprietary formulae they create…. People like MERFX and GABCX specialize in this and in general, they offer a pretty safe bet for steady but low yields, good places nowadays to use as money market rate alternatives..

    1. I’ve been hitting those points on message boards and the response is hilarious. ‘Take up the pitchforks’ …”you must be a hedge fund guy”. “You must be short”…..psst I’m a long only investor!! Without being able to understand its Institution vs Institution. The tape proves it. Just look at GME biggest shareholder starting with…..FIDELITY. Is fidelity a reddit trader with robinhood trading accounts?

      The stock hit 2.50. It had 4 dollars in losses. **NEWS FLASH** kids download their fortnight games. And they have Amazon walmart and TGT as options too.

  69. So the soundbite of the day, week, month, and year is GME. My thoughts are

    1. Short squeeze has elevated their shares so high as to give them a new shot at shoring up their insolvent balance sheet
    2. The only people hurt were short so who cares
    3. The way margin trading acts work it’s not naked shorts that pushed the short interest over 100%…and see #2
    4. The trading volume in dollars of the top 15 shorts for last 4days exceeds 200 billion, no way is the majority of that retail day trader
    5. Reports that’s it’s all robin hood and retail traders are lying or actually too stupid to know (which is more dangerous!) that’s its institutional vs institutional trading
    6. Doesn’t anybody care to report this fact; there may be 140% short common shares, but offset by 141% long option positions.

    Shorting was first done in year 1602. This is not a new concept, and none care to even report how a cash/margin account/short margin accounts work

  70. I had a few of stocks hit my “buy” level today (keep in mind I’m a buy and hold dividend investor).


    Not a lot of dry powder at the moment though so simply noting them.

    1. Any reason for liking EIX more than some others? I’m losing PNM this year on a “merger” which is really a buyout since we only get cash. So really looking for some good utilities to put that back into. I voted no on the merger since my purchase yields range from 8-14% so I’m trying not to chase yield to make up the loss but rather hoping to find one raising divs consistently.

      1. My utility watchlist includes D, EVRG, and PNW. I am also looking at VZ. The “California” risk keeps me disinterested in EIX, however the additional risk does appear to be already discounted.
        I strongly believe that the increased usage of EVs is an underappreciated catalyst for the electric utility sector.

      2. RE EIX – Morningstar has a fair value of 69, pays 4.6% and has a 16 year dividend track record so checks a lot of boxes for me. I also own DUK, SO, PNW (also a buy I think).

        There is the wildfire risk of course and I expect that’ s why there is a slight discount.

        1. Bill and af,
          SO has the two year converable SOLN also if you are good holding that Util even after conversion to common as a worst case scenario. Paying about 6.8% for about two years. Decent and fair conversion clause.
          There are a couple other big utils, D/DCUE and I forget the other one, with similar short term converts, but understand the conversion features if the stocks are down at the time of conversion with a conversion to common and that div…if there is one.

          1. Joel – I looked into SOLN as that 6.75% yield and selling sub 50 was enticing. Looking at the charts it appears that the price of the this preferred follows the price of SO very closely. (I ran them side by side). I take this to mean that the value of the shares at conversion is affected by the value of the SO common shares at the same time.

            Am I correct that one is essentially making a bet on the value of SO if you hold this to mandatory conversion? In particular, below that lower limit of $57.20 for SO share price in seems one starts to lose ground in the principle returned to you.

            I am new at mandatory convertibles so this is of interest to me. Thanks for any clarification/guidance you or anyone else can provide.

            1. Bill, You basically got it figured out. These are equity units and ultimately are just a bet on the common stock with a slight yield tease thrown in for playing.
              These typically are “stall tactic” shares issued for company to grow its earnings into some type of recent or near future digestive purchase or capital expense before converting the equity dilution.
              Since you are new to these, remember they will not trade independently like a preferred stock, they are in bed with and tethered largely throughout the process with the common stock.

        2. BillW,
          Having grown up in Southern Cal and now living in the North I have lived through 2 wildfires and talked to many of my customers throughout Northern and Southern Cal.
          Outside the risk of Santa Ana winds I am comfortable holding SCE-PH
          Look at it this way, I have no desire to hold SO because I think of the destruction from hurricanes that happen almost every year now.
          So no different in my view from Calif and the wildfires.

    2. BillW

      Of your names I like WPC, PFE, NNN. I agree with af below that CA fires are concerning for EIX. That’s why I don’t hold the SCE trusts(?). With BFS I’m more comfortable holding the PFD (BFS-E).

      Given where the market is, I think purchasing stock-as-bond income is best where one has lots of dry powder to continue to scale into these as they drop. And pick dividend champions, as you don’t want to continue scaling in on an equity and then have the divie cut.

      Another thought if your cash is limited is just pick T, MO (if you’re okay with it), EPD or MMP at their current rate, and don’t look back. You’re getting 7-9%, and let the stock price be a concern of the estate.

      1. WPC is the only common stock I presently own, I am using it more as a preferred stock replacement. It kind of moves around a lot frequently in a days time. So I have day traded it several times. And its a good thing I have as the trading has got my cost basis barely below present price. Without trading, I would be several bucks underwater in total, not counting the dividend. Jan 1, 2013 it was a $67 a share stock, albeit with a 66 quarterly dividend, now its still right around that price with an almost $1.05 quarterly. One can always pick their comparison price point, I get, but its more of a slow dividend growth play than anything.

        1. Same happens with me with EPD. I buy a chunk with the intention to hold for years, but then it rises 8%, and I’m like “why wait the whole yr for the 9% divie, just take the profit now.”
          But then FOMO pops up so I immediately buy a quarter lot, in case it goes up. I scale in as it drops, then it pops 7%, and it’s like “why wait for the divie”? Rinse and repeat as “someone” said.
          I’m a “recovered” FX and minis trader who had to “sober up” in longer-dated senior debt for years to get my life back. So I am not looking to trade: 4-5% makes me very happy. But you hold dozens of these PFDs and quality high-yield equity positions, scan your ‘unrealized gains,’ and you’re up generously in a position – you gotta take it and buy something else. That “something else” in equities is a much smaller group – and I agree WPC is one at the current 6.30% (not a “champ” but a “contender” with 24 yrs – good enough). On the other hand there are dozens of decent holdings in the PFD sector with their sober 0.5 betas.
          It’s a weirdly easy market to make money in – almost makes you feel uneasy. The Fed has a floor under this thing like never before.

      2. Yep have T, EPD, and MMP in the mix. Long term holds for now.

        My common stock portfolio is averaging 4.3% which I’m OK with. Have blue chips like JNJ, PEP, MMM Etc bringing the average down vs the above.

        Lately have been buying REITS in the IRA. WPC among others.

      1. There is merit (no pun intended) in buying the most non ESG companies out there. All they do is make money.

        Every time I see hate directed at a company or industry I look at selling puts. All those nervous holders wanting to get out! Making yourself out to be an insurance company can be profitable.

  71. Hello Fellow Investors…
    I love this site – its’ a breath of fresh air. Thank you!!

    Still, I’m not a trader at heart and don’t really want to manage 20+ stocks or bonds. Nearing retirement and want to get more in the income area, and don’t mind putting some $ away in leverged income CEFs – put away and forget. Any med risks tolerance recommendations? e.g. CGO, JPS, RCS, RFI, etc…Gamestop of course! 🙂
    All the best!

    1. Ricks- Put the Flaherty & Crumrine Preferreds on the list as well. FFC and a few others. I don’t own any now but when I did I liked them over the others in the category. Great long term track record. All are too expensive now but when the market turns these get killed and a great time to buy. As long as you wait to buy and don’t get spooked by the volatility. They can be a good piece of your portfolio. I

      1. I 2nd FFC as long as you wait for a crash to buy. These can drop 20% in the blink of an eye, that being 3 years worth of distributions. Sitting in cash to buy at 20% under present price is not bad.

        PS – FFC dropped 60% in March, so such moves are possible.

        1. Is continuing to hold it when it’s as high as it is now a bad idea after buying in the crash?

        2. I actually own FFC and plan to get more with the next correction. Probably one of the best CEFs in my research, too. Agreed: Everything is pricey right now, and I would not buy more until we get some better prices/NAVs. I bought a lot of NOBL in March – got lucky and did well. Would do it again with a good panic (I love those times).

          Thanks again – helped confirm some of my bet/strategies. Good Luck!

          1. I like FFC and have a marker holding of only 25 shares just to keep it in front of my face to watch for buying opportunities. Monthly payout of just under 7% at current high price is good reason for me to pick up more, its rated 5-Star by Morningstar. Plan to add more when it gets closer to the 3-year prem/disc average.

          2. RickS, you might take a look at BIF it’s got a big tilt to Berkshire Hathaway but has a dividend kicker, also a large discount to nav.

        3. Bob,
          I looked over on SA and read a article on these funds. One comment struck me as interesting, But the person didn’t provide proof
          “they were all able to take advantage of drops in the short-term rate and, by virtue of being private agreements, they are out of scope of the 1940 Act asset coverage rules making them less liable for a chance of deleveraging.” Would appreciate an explanation of this why / how they were able to avoid deleveraging when prices plummeted in March like so many other funds did

          1. FFC does not use preferred or bonds with covenants to fund leverage. The 1940s act states 200% asset coverage required.

            When large drops in price happen to CEF funds the asset coverage ratio goes down. Causing funds to sell at the lows of the market locking in losses.

            1. Micahc, Thank you, I like simple easy to understand. Other CEF’s are leveraged so have to issue more shares or preferred or sell assets to raise cash to bring coverage ratio back in line in time of a crash. FFC doesn’t

  72. Gift from Heaven. Proving once again that it’s infinitely better to be lucky than good, I submit the following tale. B&G Foods, BGS, is a sleepy food processing and distributing company whose management has apparently been involved in some sort of empire building by buying up other companies in related fields. This has left the company with a big pile of debt. Sales and earnings have never been that good until the Covid pandemic hit and, apparently, people started shopping at their supermarket and cooking at home. That caught my attention, and figuring that this trend would last until at least early 2022, I impulsively bought a few hundred shares motivated by what at that time was a juicy 6.7% divi. I did not check what percentage of the shares had been sold short. (I know, I know. Maybe I’m not that conservative an investor). But apparently it was a lot of shares, as this stock has simply exploded upwards in the last 3 trading sessions with absolutely no news. What I paid $27 for I sold today for $43. Maybe I should have waited, might go to $100.

    1. As the Gamestop Reddit kiddies blow up a couple hedge funds, seeing this type of action in a number of stocks. the Hedge Funds that were short GME had to cover and had to sell / unwind other positions to raise capital – hence why the market is down big and stocks that had large short positions are up

      Hence I was able to see a nice jump in one of the dogs I have been holding, SKT as well as in IRM which I have been holding due to the juicy dividend

      Seems the next targets of the reddit crowd are AMC and NOK. I bought a few shares for kicks and giggles (and I do mean a few)

      1. i sold IRM on the reddit pop. i also bought a little AMC just for kicks.
        Frankly i like what the reddits kids are doing. taking out wall street hedge funds. after all the abusive stuff wall street has gotten away with over the years its nice to see it happening to them instead.

        1. i dont recall ever seeing a stock trade over 1B shares outside an IPO.
          AMC is at 1.15B right now

        2. Yeah, I sold most of my SKT and a little IRM on these pops
          Limit orders to sell the rest of SKT and more IRM in case they pop again tomorrow

        3. I sold all of my IRM on the pop. Did not understand the reason for the sudden increase, and am optimistic that I can buy again when the price returns to it’s pre-pop levels.

  73. EPR, closed Friday at $ 37.29 and moved up sharply today on heavy volume.
    I’m guessing hedge funds were the buyers.
    I sold all my shares at 40.80.
    2WR, Here’s another “CUP” formation setting up nicely.

    1. Newman — LOL! Not saying EPR is an example but there’s so much casino type money in the market right now that to me, it’s difficult to feel comfortable in equities…. Yet those betting on red are the ones making the money these days, not me…….. it’s tough to argue with that… So what say you for the trading pattern on GME today??? It looks like the dreaded bed-o-nails pattern to me… lol

      1. Wow, GME is not for moi.
        It reminds me of the .Com days.
        I was tipped ACRS in January 2020 while in Vegas.
        Seems a genius in the family researched it diligently and bought his shares at $1+.
        Me and the Missus bought 3200 shares at 2.24.
        By the Summer of Covid, We were tiring of this nowhere stock. So we sold and broke even to making $ 500 or so.
        Now we hear the genius has sold a bit of it at $16 Just last week.
        And we went huh?
        That’s my story . I am not a Buy and Hold fellow.
        btw, In my taxable acct. I just bought 500 EPR at 39.50 and sold 5 July $40 calls at 7.20.
        Wish me Luck

  74. One might think that when you combine the new physics: what goes up never has to come down as long as the Fed is your backstop….with Modern Monetary policy i.e. you are not bankrupt as long as mass media says you’re not….that investing in equities would be easier. I find its just the opposite.
    I reviewed a number of lists of top global 1000 companies, Fortune 500 companies, Dividend Aristocrats, etc…..and was hard pressed to find 10 companies that I thought would still be in business 20 years from now, even though many of the companies have 50 and 100 year histories.
    So for me the question comes down to whether I want to join a herd that can’t seem to rush off the edge of a cliff fast enough or try to maintain a sane position by just having my eyes open and seeing what I see and ignoring what I’m told to see.
    It’s a difficult choice, its the difference between making money and not making money. Capital preservation and significant losses. I maintain that the 2008 Financial Crises has still not ended, illusions or delusions to the contrary.
    Preferreds and ETFs are my compromise and equities are my gamble. In my perfect world a 5% FDIC insured CD was all I ever needed…..and that world has been totally destroyed and will probably never return….for reasons or in whose interest I still don’t understand

  75. PCF – I don’t see a way to start a comment in the CEF section so I’ll ask here: Does anyone follow PCF and/or have an opinion regarding the rights issue?? the cutoff date = January 22 but with Fidelity, I have to decide by Jan 21… Anyone in this one???? Right now it looks like possibly a good deal to participate but nobody can be quite sure until after the fact just how much the issue itself will lower NAV…

  76. Anyone holding DD and have an opinion on their tender to exchange for Nutrition & Biosciences shares (which will then convert to International Flavors & Fragrance shares? I’m inclined to pass but wondering whether anyone is seeing something compelling in IFF.

  77. RILY – Not that I’m complaining or anything as I do own RILY, but does anyone have an explanation as to why RILY is soaring to 51.50 on a day when it priced 1,228,735 new shares in a secondary at $46??? Usually a secondary leads to a stock temporarily weakening in order to absorb the new supply, but not this time….. Yay!

  78. Many of us are holding “dry powder” to be able to react when the opportunity arises…looking for ideas where to store that powder while we are waiting.
    Open to ideas for relatively safe principal but yielding more than zero.

    1. AP, Besides Cash? The problem is that you are going to have to liquidate in order to re-allocate when stuff is cheaper….probably so will those temporary instruments.
      Traditionally treasuries can be effective (in theory) and they are liquid and good margin security depending on the term.
      Margin used properly and in a disciplined fashion can be effective, but that is the first things brokerages throttle back in a downturn and that should be well understood.
      An open home equity credit line with pre-arranged electronic transfer system to your brokerage set up can be a tool for deployment.
      Selling the labor of your children in the futures market??

    2. Andrew, I’ve used PULS and JPST ultrashort term ETFs in the past. Now yielding ~1.4% and very stable, but they will drop some if the bottom falls out. Just a lot less than common stock.

    3. One thing doable for very short term powder storage is buying called preferreds and baby bonds…. you’re talking about 30 day or less holding periods, but with zero commission trading available you can pretty simply earn 2% or better on an annualized basis on these essentially riskless buys. It’s definitely picking up pennies but when you’re earning 2% annualized with money that would be earning you zippo annualized otherwise, why not… Forget about trying to do this with called bank stocks because they’re always too high, but off names right now provide a safe possibility… they’ll hold value or appreciate ever so slightly toward call and usually are an easy sell without loss should you want your powder wetted, but it’s a timewaster of a trade for any other purpose… An example would be NGHCO which traded today between 25.06 and 25.07. It will be called on Feb 3. @ 25 + accrued which should be approx 25.1093. You do NOT get the 1/15/21 divvy payment however, even at 25.07, that nearly 4¢ you get above cost is about a 2.00% annualized yield, maybe better. Accurate calc is complicated due to trying to compensate for what you DON’T accrue between today’s settlement date today and 1/15 when accrual begins..

    4. Andrew, since we are in the common stock area, i like the prospects of growth and the current yield on AVGO. (I think the yield is 3%+). Have help this a while and it’s had a price run up but i think it’s still in a buy zone.

        1. I would not buy AVGOP…yield is higher than the common, but it is trading above the highest conversion price. The highest number of shares one can receive on mandatory conversion is 3.0303 shares. That means one would receive shares at a cost of 476.52 based on today’s price of 1444 on AVGOP. Note that the current price of AVGO is $443.

  79. Are we all just playing a futile game investing in preferreds these days??? I can’t ever remember a stock market as is being experienced today where percentage gains on so many individual stocks can be in double digits without any new buyers batting an eye about a concern for valuation… It’s really extraordinary…… It made me do a dumb little calculation…. On a lark, I bot $3500 worth of a new battery maker, EOSE, on November 24. Based on where EOSE stands right now, I would have to have invested $51,250 in 2050 shares of a $25 baby bond yielding 5.5% and held collected a year’s worth of dividends to equal that gain…. Yeah, I get it the gain on EOSE could very well turn out to be illusionary and yes my 2050 shares could maybe have appreciated oh say 5% as well as pay interest, but still, isn’t this a crazy world right now??? The Efficient Market Hypothesis for the stock market seems like such a quaint concept today.. [] I suppose there’s nothing terribly meaningful about this post. I’m just voicing amazement at today’s markets.

    1. Sorry – meant to say “where percentage [DAILY] gains on so many individual stocks can be in double digits”

    2. 2WR, it does seem to be difficult to justify stock prices now and for the past year or more. If inflation gets its legs under itself later this year and/or the FED gets cold feet about pumping money into the economy nonstop there could be a reckoning that is painful indeed.

    3. 2wr: We can very effectively turn into an economy based on trading! When the is no risk, there are no losers!
      In the words of the investment guru/prophet: Merle Haggard, “drinkin that green bubble up and eatin that rainbow stew…”

    4. First, I would say I have different objectives for my preferred portfolios than for equity MFs and ETFs. The primary purpose for me as a “buy and hold” preferred investor is income flow rather than price appreciation.

      That said, my preferreds in the aggregate are up 30% over cost of purchase, lowering the yield on original investment of 7.43% to a current yield on market value of 5.68%. I have no expectation of further price appreciation, in fact the opposite. But, who knows?

    5. You just need to know what Musk will tweet next, I’ve never shorted a stock but the Signal story sure makes me wish I knew how.

  80. CUBI – Has anyone found a way to find out what to expect regarding when CUBI shareholders should receive shares of BMTX from the divestiture? Given it was completed in Jan 4 I would have thought that the new shares should have shown up in my accounts by now, but calls to TDA and Fidelity Corp Actions have so far been met with blank stares as no one seems to know anything….. CUBI IR is between IR directors so that doesn’t seem to be a helpful avenue either, though the Director of Marketing has been very helpful in attempting to find out more.. So far, though, he too has no answers…

      1. EarlyB – that link would only show up on your own computer I think… In any event I just got this from Director of Communications and Marketing : shareholders will be receiving a letter from Jay Sidhu by email that has lots of details (attached).  I can also tell you that the website IR page will soon have that letter with these bullet points:

        BankMobile – Special Distribution

        Customers Bancorp closed its divestiture of BankMobile on January 4, 2021.  Holders of CUBI common stock will share an aggregate of 4,876,387 shares of BM Technologies, Inc (“BMT”) common stock. Each holder of CUBI common stock is entitled to receive 0.15389 shares of BMT common stock for each share of Customers common stock held as of the close of business on the Record Date of December 18, 2020. BMT shares are being issued to eligible Customers shareholders exclusively in book entry form by BMT’s transfer agent, Continental Stock Transfer and Trust Company until the transfer restrictions have been lifted or expire pursuant to their terms. Shareholders will receive a statement from Continental that evidences the issuance of the special distribution of BMT stock.The BMT shares received by Customers shareholders are subject to certain transfer restrictions and are not immediately tradeable. The shares are subject to a lock-up period beginning on the January 6 and continuing as described in the letter to shareholders from Customers Bancorp Chair Jay Sidhu. Other important details are also contained in this letter. If you have any questions regarding your BMT shares, you can contact Continental Shareholder Services at 800-509-5586 or via email at

    1. Doesn’t really answer your question but my shares of MFAC at Vanguard did turn into BMTX on schedule.

      1. No, it doesn’t, Bob but interesting none the less…. So what do you figure accounts for the price drop these past 2 days? I’m not even sure what my cost basis is going to be but best I could figure it’s supposed to have been around 10.38 coming from the CUBI side… Do you know yours???? Is the selling in your opinion just fast money locking in and moving on?

        1. no idea actually. i look at this as having 10-bagger potential and it will take years to unfold. there aren’t many pure play fintechs that i would touch but i’ll give this one a shot.

          1. I’ve been trying to figure out what Bank Mobile does that makes it appealing. I’m sure I’m not the target customer since banking seems so simple to me and can’t imagine what Bank Mobile could offer me that is better. If they truly have over a million customers they are doing something right even if I don’t understand it.

            1. BMTX is not for you, or for me, but the kids are going for it in a big way. It’s online only, like the rest of their lives, and they focus on customer acquisition at the college level. The aim to do full service financial services all on your phone. None of it is rocket science but if they can establish a leadership position quickly enough they will crowd out competition.

              1. I really doubt BankMobile is going to establish any leadership position. Tons of banks already offer mobile banking apps. BankMobile is no different than those. And kids regularly use platforms like Venmo, CashApp, etc.

                My 27 year old daughter after graduating from college took a job out of state. She has now been working 6 + years now. She has not set foot in a bank all that time. She uses the app from her bank account that she had in college. She rarely uses ATMs. Paychecks get direct deposited. Money she makes free lancing transferred via Venmo. The rare check she gets she deposits online via her bank’s phone app. She uses a credit card for purchases and has it paid automatically from her bank account. When she had roommates, they would transfer funds to each other via Venmo or cashapp for their share of rent, utilities, etc. I think in 6+ years she has written 3 whole checks. Yes, just 3. So yes, younger adults live online on their phones today. But BankMobile has far from first mover advantage. they are just another option in a sea of existing ones

                1. Mav – that is certainly one side of the debate. The other is that a bank with an online only focus, aimed squarely at kids just entering the financial world for the first time, can leapfrog the others. Jeff Bezos was hardly the first person to have the idea of selling remaindered books (online or not) but his execution certainly was better. Microsoft wasn’t the first company out with a small computer operating system (they actually bought DOS from another company) but they made a greater commercial success of it. Many other examples.

                  I don’t invest in may individual equities often but I threw a few (thousand) bucks at this to see if the team could make something of it.

                  1. Bob – I just don’t see what advantage BankMobile has. I looked at their app, it does the same thing my daughters small credit union app does or my bigger bank app does. As to online only – I have funds at Ally Bank and their app actually does more than BankMobile. So not sure one can say Bankmobiles tech is better or going to leapfrog the competition.

                    As far as first mover advantage, that ship long ago sailed. So I just don’t see the advantage BankMobile has.

                    Anyway, good luck with it but I personally would not count on it becoming the next big thing

                    1. Mav – Though my expectations are not over the top on BankMobile, I think one point you may be overlooking is that most likely, even your now 33 year old daughter may not be BM’s primary target and, if that’s the case, then the idea that the “first mover advantage” has already sailed could be wrong and will in a way always never sail because I believe BM’s target is essentially first time openers of bank accounts always…. They’ve established proprietary relationships with something like 725 colleges so far with an eye toward becoming the first bank new incoming college frosh consider having with the assumption being that if they can get ’em when they’re beginning their first banking relationship, they’ll have a high percentage of sticky account relationships that will stay with them forever…. So as long as colleges have incoming freshmen every year, BM is trying to position themselves to possibly always be perceived by their target audience’s “first movers.” Throw in their newly established positioning with Google Pay, and it looks like they’re heading in the right direction… But then again what the heck do I know?? I had to look up Venmo just to see what you were talking about…. lol

                    2. 2WR – I do understand their marketing strategy. And yes, on one level, it makes sense to target college freshman and hope they stick. But think about this. How many college freshman are there that don’t have an existing bank account.

                      I think you can break these freshman down into a few categories. Those who already have an account, those who don’t but have no job / income, those who don’t but work a part time job in college. So really the target audience is that last group.

                      I believe you will find a number of students who go off to college have an account already – either to hold funds they earned from working a summer or two in high school, set up by their parents , etc. I mean, how many kids go off to college with no spending money to their name? Or no easy way for their parents to deposit money if they need it?

                      But let’s assume there are some – well if they don’t work in college, why would they need an account? They have no funds and no funds incoming.

                      So now you are down to that last group who have no account but get a job in college to earn some money. I just personally don’t think the numbers are that big. I could be wrong of course, but just my sense.

                      Just my 2 cents from my work experience. Good luck with it

                      PS – just a correction on what you wrote and sorry if what I previously wrote may have mislead you – my daughter is currently 27. She graduated at 21 and has worked for 6 years

                    3. Mav – You know, in the back of my head I was thinking I should probably reread more carefully what you wrote before coming up with that 33 number, but I took the lazy writer’s way out and just winged it.. Sorry ’bout that… I do think that their target audience is broader than how you define it, but still, I also think it’s not a wide moat competitive advantage that they have and the key to success will have to be execute, execute, execute…. Given my initial exposure will be based on such a very small percentage of my already small amount of CUBI common, I suppose my exposure might equate to merely a freezer full of future steak dinners. This will be more of an adventure into de “youts” banking behavior these days as Cousin Vinnie might say than anything else.. Those days are so far behind me I don’t even remember whether I had an existing account heading into freshman year or not, despite having had summer jobs throughout high school and probably even prior. I do remember feeling uncomfortable with money in those early years so the door would have been open to any entity looking to coddle my wallet..

                    4. 2WR – No problem. And yes, if one can figure out in advance what “De youts” next big thing is, one can profit from it.

                      As Vinny would say – Oh you like grits? I like grits too, how do you like your grits? Regular, creamy or al dente?

  81. I have not been looking that hard, but I like Enbridge stock for 2021. Already an ~8% dividend on the common, and the dividend could go up quite a bit once Line 3 replacement construction is completed.

    Not finding much I like for Preferreds right now. NSARO is my only preferred holding.

    1. I have been in ENB off and on over the years – currently in and added a nice block recently (~31.75) to my holdings. Nice holding, great dividend (reasonably safe), and good prospects.

      1. Jake, Tim and Proto above,
        I third…or fourth… the motion. Can go naked, but I am using puts and call with them too, but not necessary. Good volume and bid/ask.

  82. Anybody follow CNFR?? I can’t see any reason why the price has doubled in AH. I’ve followed it for a couple of years, owned CNFRL for a while and to date have seen no signs of a turnaround or any other reason to get back involved, so what’s caused this spike? Somebody knows something because it’s on large volume as well.. Maybe it’s just because Robinhood’s run out of $2.50 stocks to play with..

    1. 2WR–saw that pop this morning–can’t find any news anywhere. I learned my lesson on these small insurers with Atlas Financial–they are all pretty dangerous.

      1. Amen, Tim… I had followed Atlas as well, but fortunately never bot in… as mentioned, no visible signs of actionable turnaround in CNFR in the past 2 years imho. Still the volume’s crazy on the day but the whole event seems to be based on absolutely no news….. perhaps just another example of capability to get momo players in today’s market to glom on to anything without knowing nothing……. And who can blame them? They’re winning for now….

      2. Need some advice on a loser of mine. “Freeport” FCX have held since 2013 in a retirement account. Paid a nice 4% dividend at time of purchase, actually picked off a special dividend to boot. Management took a mining company $20 billion in debt with poorly timed bet on energy and suspended dividend. I’ve road this dog for years, with miracle rebound plus another 7% today, now about $500 from break even. If not qualified money? surely someone has had a similar problem? any comment helpful.

        1. Mike – Have you ever heard the Wall St cliche, “The market doesn’t care what price you paid?” I think it’s one to always keep in the back of the head because we all probably have the same tendency to think emotionally and possibly do what you seem to be describing where your buy/sell decision is based more on original cost, no matter how old and out of date that cost basis info may be, than considering today’s prospects for the stock in question…. Here’s one short article that sums this concept up – There are probably even better articles out there but the conclusion made is, “ask yourself: would I buy this stock today at the current price? If your answer is no, then it is likely that you are making an emotional investment [or emotional decision to hold]….”

          1. 2whiteroses, agree. I remember when Nomadicmist posted “If I didn’t own this stock today would I still buy it now”? I keep that on a post-it note next to my computer. I need that reminder to counter my emotional leanings. Sometimes it’s hard letting go and moving on.

        2. Mike, You have ridden through the commodity bottom. It can be grueling! These are notoriously long, multi-year and frustrating. It’s a throw in the towel challenge…I hear ya.
          My take is that now the multi-year bottom has been placed, oil, ag, metals, and the first move up is not to be believed…AGAIN. I see this as the first wave back up, there will be sellers here, then a sustained, higher low which will create a verification for the real trend move up. It could take a while since commodities move slow.
          The other good news is that these businesses and tough-ass managers have LONG experience managing these commodity cycles and have wrung out their balance sheets so now, small increases in their commodity pricing can really flow right down to their bottom lines and hence share price. Corn, Copper, Silver, Oil, even NGas.
          As an indicator: Basic commodities are at a very low percentage of overall market cap and when they begin to reassert, many institutions will jump in too. I am a holder and overweight commodity companies (using options too) and preferreds in my portfolio. In answer to 2wr above, yes I would buy here.

          1. thanks joel & 2wr, Just saw on cnbc half time’s Pete Najarian just bought Feb. $29 call options on FCX I’m not an option expert or trader, but I’d say he also likes Freeports chances. Thanks again Mike

  83. Does anyone else here follow CASS? It looks kind of appealing at it’s current price. I own some but was considering adding.

  84. Has anyone investigated the much hyped electric battery automotive and lidar autonomous driving fields? I’m looking at Quantumscape (QS) for their solid state EV battery development and two lidar tech companies, Luminar (LAZR) and Velodyne (VLDR). All three common stocks are on a tear, plus they have warrants available, QS.WS, LAZRW, and VLDRW respectively. Any thoughts?

    1. mikeo – wished you had mentioned QS in early November before it increased 1000%! 12.93 beginning of Nov to 119 today.