Costamare Preferreds Falling

Just a note that the 4 preferred issues from container ship owner Costamare (CMRE) are tumbling.

Shares went ex-dividend ex dividend on the 13th–and have just continued to move lower. The high yield issues are now $1 lower since ex date.

A quick scan and I don’t see real news out there (although there may be some), but I think it is more likely simply a sell off on valuation.

Their 4 issues can be seen here.

For those with risk tolerance there may be opportunity here.

21 thoughts on “Costamare Preferreds Falling”

  1. MONACO, Jan. 23, 2020 (GLOBE NEWSWIRE) — Costamare Inc. (CMRE) (the “Company”) (NYSE: CMRE) is unaware of any fundamental reason for the volume and price movement of its common stock in the last two days and we look forward to releasing our earnings on Tuesday, January 28, 2020.

  2. Cmre-c was a slam dunk below par especially if swapping out of the lower yielding CMRE-B. 0.875% difference in coupon and same price. Swapped some GSLD at par into CMRE-C as well.

      1. Not out of GSLD. But sold 50% to finance purchase of CMRE-C. There’s a lot more upside possibility in GSLD but CMRE-C is much lower risk as it should get called, keeping the price pinned to par. 8.5% coupon for CMRE-C is both a better yield and greater safety than 8% for GSLD. I had more GSLD than I’m comfortable holding long term anyway.

        1. All right, then it makes sense.
          Btw, when the sector falls the GLOP family is always hit hard. I was about to sell my GLOP C finally close to par a couple of days ago and now it’s going to $24. It seems due to a downgrade that sank the stock.

          1. Speaking of LNG, I sold a chunk of TGP-B today at 26.40. It hasn’t been touched at all by the declines in LNG common and some preferreds. Swapped proceeds into CMRE-E which has a YTC of 7.75% at 25.75. Supply/demand fundamentals are better for containers than LNG. I also worry about the decreasing differences in nat gas prices in the world. The less the difference, the less the incentive to ship LNG from one place to another. Warm weather in Asia isn’t helping LNG demand either.

  3. MONACO, Jan. 23, 2020 (GLOBE NEWSWIRE) — Costamare Inc. (CMRE), announced today that it will release its results for the fourth quarter ended December 31, 2019 after the market closes in New York on Tuesday, January 28, 2020.

  4. They report this afternoon after the bell
    Perhaps some profit taking after a +60% move between quarters for the common
    A buck over par for their pfds may be too rich without the “show me” quarter that is being anticipated most likely

    just my 2 cents

    1. Yes–I think it is related to high valuations–for an industry with a poor reputation. Folks got carried away with the preferreds (whats new?).

  5. Yes, seems like their competitor SSW is also falling sharply along with their preferreds. Guessing this could be related to issues with shipping/trade due to the virus but that’s just a guess.

    1. Tdubz–surely could be a general delayed reaction to the virus–but they have had days to soak that in.

    2. The corona virus is putting a huge damper on mainland Chinese New Year travel/celebrations. Destinations like Macau will be impacted. On the plus side most of the country is closed for about two weeks during the holiday, so transmission rates at schools and work-places are minimized. Hopefully, the Chinese government can get a handle on the problem by then, otherwise the factories and schools will remain shut.

          1. New York (CNN Business)McDonald’s has closed restaurants in five Chinese cities and is implementing new health protocols in the region as the deadly coronavirus continues to spread.

            On Friday, the company shuttered locations in Wuhan, Ezhou, Huanggang, Qianjiang and Xiantao — all cities that have been impacted by the Chinese government’s travel restrictions, company spokesperson Barry Sum told CNN Business in an email. At least 10 cities in central Hubei province are facing travel restrictions, including Wuhan, where this strain of coronavirus originated.

            1. Sorry, you are CORRECT, did not see latest, I have sold some equities this morning, worried about where this will go over the weekend, not sure whether this is a media event or the real thing. Sure seems to have taken some of the limelight away from “impeachment”

              1. Well, unfortunately, the worry will last longer than the weekend. Shanghai Disneyland is shut down, China is restricting travel for 35 million people as the death toll rises, Wuhan is building a 1,000-bed hospital in six days (and turning away people with symptoms at current overrun hospitals) and now a woman in Chicago turned up with the virus and they’re monitoring a dozen more people in the U.S. Another potential big wall of worry.

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