Today we had the ‘official’ government employment report which came in acceptable–little soft to forecast and the unemployment rate rose from 4% to 4.1%. Markets have moved both ways in reaction, but now equities are down 1/3% and the 10 year treasury is off 3 basis points. Obviously the employment market is softening–and I expect this will continue.
While I didn’t intend to do any buying late this week I did go ahead and take a tiny new position of the Gladstone Lane 5% term preferred (LANDM). This issue has a mandatory redemption on 1/31/2026. My buy had to be tiny as no one wants to sell and I am not overpaying for shares–my buy was all of 105 shares which doesn’t really move the needle. I may buy some more if I can get it cheaper than $24.75 (a little over 6% yield to maturity). NOTE that I had previously owned this issue and sold for pretty good capital gains 11/2024 @ $24.98.
This buy is simply a furthering of a CD replacement. Someone mentioned it yesterday in comments so I went ahead and ‘borrowed’ their idea. I really need to do more of this using short duration term preferreds and baby bonds–it may take awhile since these issues are many times extremely illiquid. We’ll see what I can do in the weekend ahead.
I have LANDP but have reduced the amount in the last month. But still with 1251 shares. Ended up with a larger allocation of EIIA and raised cash (SGOV) to deploy if the markets really get frisky to the downside here.
Well!! Interesting….. On 2/3/25 Tim posted “If I owned this term preferred I’d sell it!”. I owned a bunch and had kind of ignored it, so that posting pushed me review it. Ended up selling my 1250 shares and bought EICB Series B 7.75% term preferred with a redemption of 7/32/28 on the Short and Medium Maturity Income Issues list to replace it. I was happy to trade it for a couple of years longer life at 2% higher right at par too. Don’t think I am going to sell EICB and buy LANDM back (Unless Eagle Point Income goes dicey)!
I am honored that my idea on LAND-M was borrowed by Tim. Circular reference though as I got it by scanning through the info he curates here for everyone.
Fidelity nanny screen says I have to enable PENNY STOCK TRADING on my account in order to buy LANDM.
Penny stock? Really?
Anyone else?
i just but a few on fidelity
no issues
FWIW, I’ve been nibbling on tiny amounts over the last couple of months without problems. But maybe I’ve enabled Penny Stock Trading? I certainly can’t recall doing so, although in the past I know I’ve had to enable certain levels of risk for some things.
It’s really interesting the restrictions I’ve seem on here with Fidelity and Schwab with trade sizes and types. I am with eTrade and none of those have hit me. There were a couple hiccups when it transitioned to MS but not of much consequence.
I haven’t run into many restrictions from Schwab. And the ‘penny stock’ fidelity issue is easy to solve, just a few clicks to agree to their disclosures.
My main brokers are fidelity, IBKR, and Schwab. It’s annoying having 3, but I’d be more annoyed not having workarounds to the limitations.
The restriction Fidelity has to limit the amount of shares you can buy/sell for certain equities has to be a little annoying, no? If I want to sell 1000 shares, I’d hate to have to break it up in very small tranches. Or did I misinterpret that?
A “little????????????” Surely you jest……… I noticed the other day that Gabelli has officially announced they will be redeeming GDL-C on the upcoming mandated date of 3/26/25. Since there was a chance they might do some shareholder friendly action such as increase the coupon and extend the maturity, I figured maybe I’d try to sell some if I could find somebody looking the other way….. I own 1700 shares at Fidelity… I was allowed to put in a sell order for 14.