Early yesterday I sold 2 of my small bank positions.
I sold the Heartland Financial 7% Fixed Rate Reset preferred (HTLF-P) at $24.30. Including dividends I had a total return around 8%.
I sold the CNB Financial 7.125% fixed rate preferred (CCNEP). I held this for a very short time and realized a 4% gain–no dividends received.
My logic here is simply to raise a little cash by selling a few issues which I believe will present another buying opportunity in the months ahead. Moodys is pounding on the banks and there are predictions everywhere of issues with the banks. While this may all be BS in the short term there could be (is) some pain.
I was fortunate in my timing on Tuesday because my GTC orders executed early in the day as banking issues got beaten later in the day. Numerous issues which I hold have given up 50% of my gains, although 100% of them remain in the green–although some only 1-2% (plus dividends).
If there are issues with the banks then its probably going to take the rest of the market down with them. Which will in turn halt any ideas the Fed has of raising further and will most likely result in lowering rates. I’m holding and looking to buy some of the carnage if there is any.
My take: there aren’t any new issues with the banks. This is Moody’s normal piling on well after the fact.
Unloaded prior USB issues in April before the swoon, then in last few days full boat of USB-A at 776 on trigger sale. Modest gains on the lot plus divvies. Deteriorating balance sheet with questionable accounting, I’m out.
Sold all of my C-N yesterday for a small gain, plus one dividend. Will buy back if it swings below $28.90 in the near future.
Next dividend is in October so plenty of time.
Inspy, This is the only bank issue I own. Only recently got back into it in the 28.50s exD. Probably just hold near term, but certainly not looking to buy more.
Welcome to the party Tim,
I just sold my ONBPO today and the ONBPP yesterday. I feel like they are good issues and obviously people wanted them as the one spiked upwards this morning, but I collected several dividends. One being just recently so I have 90 days to see how it plays out.
Charles–I was late since I let 3-4% of cap gains slip away.
Tim, you were musing out loud August 1st to yourself and the rest of the group about booking some profits. I started trimming myself thinking the market had run up and where did it have to go? I was thinking about a different event hitting the overall market not something sector specific. Of course I didn’t trim as much as I should have and soon enough. Was late following my own advice.
This morning I went through open orders and canceled a few bank and other sector bids and moved some bids lower. Now that 2nd quarter earnings results are mostly in I am going back over again my holdings and open bids to see if I need to trim farther. Will be starting to look at some other opportunities to set up bids.
Your posts of headlines of interest are really helpful and I want to put a shout out to everyone who posts on reader alerts.
Hope my post on KRP for those who do flip trades was helpful.
Tim, I entered BWBBP very late, after selling off all my TRTN-C and D, bought by Brookfield. 600 shares at $18.1. CCNE the issuer of CCNEP seems to have larger cap than BWBBP or HTIA, (per QOL seems to be eREITS. I have unrealized gain. Perhaps, I should unload BWBBP and take he $500 first. Of course, these days, even Jaime Diamond, CEO of JP Morgan Chase probably suffer losses from the stubbornness of the Feds. Saudi Arabia, Putin both cut the production, aiming to ……… I will refrain avoiding political, no matter how likely. Will appreciate your views on BWBBP, and CCNEP vs. HTIA ( silly me, I thought it was a bank). Thanks,,
Sorry I misunderstood. I do own Heartland Financial. The issuer is relatively large cap 2 Billion per QOL.com. Past ex div date, probably should lighten up some.
Onb is thinly traded and if you can get out over 25 then probably worth it and not a bad move