On this page folks should comment and write about illiquid securities–preferreds and baby bonds. By Illiquid I am talking about those issues that seldom trade–or only trade in very small volumes.
We have a lot of discussion on the site about these types of securities–normally $50 and $100/shares issues and the commenting gets scattered about–by using this page we can keep this topic more centralized.
A caution to all investors, but in particular those will little experience in illiquid securities. Tight limits must be used on all of these securities–if you don’t use limits you will butchered. Also while some of these issues have been outstanding for more than 50 years they can still be called–it happens and if you overpay (pay more than liquidation price) you may be setting yourself up for a loss. Always do your own due diligence–always double check the facts–everyone makes errors (certainly I do) and you need to know the facts.
Investors should know that illiquid securities will drop like a rock if there is a large move higher in interest rates. One of my current and long time holdings has been a $50/share issue from CEF Tricontinental (TY-P or TY-) with a 5% coupon–very high quality. This issue is now trading around $56, but in its life (issued in 1963) it has traded as low at $18/share–so there should be no doubt they can move sharply.
PREJF has an ask of $17.70 (6.89% current yield) and the ex-date is tomorrow.
https://www.otcmarkets.com/stock/PREJF/quote
Dick this isn’t a term preferred is it?
perpetual
Thanks Mr C
CNTHN ask yield looks to be at 6.08%. I’m not playing on this one today and not a recommendation.
Brought a full position in CKNQP (CoBank BBB+ rated). 1st call date is 1/1/25. If not called, it will float at SOFR + 3.7 +.26 adjustment. I think this is very likely to be called.
Brought at PAR. Approx 4 months with 2 dividend payments (mid Sept and mid Dec). 3.1% in 4 months is a yield to 1st call of over 9%.
A place to park money for 4 months at a high rate.
Steve-
Why do you think CKNQP will be called, other than the float yield?
just float yield.
Will be happy to hold if they do not call it.
CNLTN ask yield of 6.06% at the moment. Not a recommendation.
UEPEM ask yield at 6.08% at ask. I just got some.
Not a recommendation.
Snagged, Danka.
I hope this goes without saying…. but just throwing it out there. People should do their own diligence (including the math on the price and yield) when buying these illiquids. Also, I have seen a few instances where the broker has the wrong yield.. so always calc the yield yourself.
I keep a spreadsheet on several of the illiquid utility preferred shares with excel links to current prices. I find that helpful. Quantumonline is an excellent source of information along with annual reports.
NewTT2015 > are there any utility preferreds that you are watching in particular? I could be called NewToThis2023 so I don’t have them all on the watch yet
cnltl cnltn cnpwp cnltp cnlhn cnlpm cnpwm cnlho cnthn cnlhp cntho cnlpl cnthp nsarp nsaro AILLI AILLP AILLN AILLO AILLM AILIM AILIO AILIN AILIH
AILIP UELMO UEPCN UEPCO UEPCP UEPEM UEPEN UEPEO UEPEP NMPWP
NMK-B NMK-C
I wouldn’t consider this an all inclusive list of those that are worthy of watching.
Here are most of the OTC utility preferred symbols I have on my watch list. The details on these can be found by looking up the parent company on EDGAR (https://www.sec.gov/search-filings) and reading the preferred stock section of the latest financial statements, searching the ticker on the OTC website (https://www.otcmarkets.com/), or searching the ticker at QOL (https://www.quantumonline.com/search.cfm).
Wisconsin Electric (WEC)
———————
WELPP
WELPM
Ameren (AEE)
———————
AILLP
AILIH
AILIP
AILLO
AILIO
AILIN
AILIM
AILLN
AILLM
AILLI
UEPEN
UELMO
UEPEM
UEPCP
UEPEO
UEPEP
UEPCN
UEPCO
Eversource (ES)
———————
CNLTL
CNLTN
CNPWP
CNLPM
CNPWM
CNLTP
CNLPL
CNLHN
CNLHO
CNLHP
CNTHN
CNTHO
CNTHP
NSARP
NSARO
Sempra (SRE)
———————
SOCGP
SOCGM
NGG
———————
NEWEN
NMPWP
NMKBP
NMKCP
TXNM
———————
PNMXO
PacifiCorp
———————
PPWLM
PPWLO
Hawaiian Electric
———————
HAWEN
HAWLL
HAWEM
HAWEL
HAWLN
HAWLI
HAWLM
This one trades on the NYSE:
CMS
———————
CMS-B
Picked up some of the CNLTN. Thanks for the heads up.
Things seem to really have tightened up. Current IG OTC utilities with ask prices with current yields above 6%:
UEPEM, Ask 66.50, Current Yield 6.01%
UEPEO, Ask 74.80, Current Yield 6.02%
CNPWP, Ask 34.00, Current Yield 6.00%
CNLPM, Ask 34.00, Current Yield 6.06%
CNLPL, Ask 53.30, Current Yield 6.08%
CNLHP, Ask 37.25, Current Yield 6.04%
CNTHO, Ask 44.00, Current Yield 6.00%
It’ll be interesting to see how long yields above 6% will be available.
Thanks, Dick.
For those who avoid buying above par (or above liquidation value), note that CNLPL is a 50 par with a 51.84 liquidation value.
The 53.40 ask (raised 10 cents since Dick’s post) is above the liquidation value. Even stripping out the ~65.2 cents accumulated div, the stripped price is 52.75, still above the liquidation value.
QUANTUMONLINE.COM SECURITY DESCRIPTION: Connecticut Light & Power Co., $3.24 Series G of 1968 Preferred Stock, par value $50.00 per share, redeemable anytime at the company’s option at $51.84 per share plus accrued and unpaid dividends, and not subject to mandatory redemption.
I have been buying still. They still offer tremendous relative value, especially for taxable accounts. IMO, CNTHO is the best of the bunch when factoring in the ex div and plenty avail on the offer.
Maine: Great call on CNTHO! Up almost 6.5%
CNTHO had a drop of $3.73 today on low volume. CTA-PA gave up $2.08 on slightly above average volume.
As a comparison of sorts, the PSA M-S shares are averaging 5.35%.
Sold 100 today of CTA-A for 58.75 still more available if anyone wants them
Waded a little into the Hecla Mining Preferred arena (HL-B), 6.61% yield, ex date mid Sept.
I also thought HL-B was a neat purchase but I only bought a 100 shares. Silver being at 29ish and gold at 2400+ really gives them some wiggle room to comfortably pay the div as they earn more over time. Naturally if both metals fall hard I will rethink it. It was just a way to get a bit more yield over most everything else. Diversify a bit. American miner preferred are plain non-existent now days. Plus there is always a chance someone is willing to pay stupid money for it down the road. It has happened before.
fc, got this primarily to diversify the holdings a bit, even with fluctuating metals prices seems to have not really messed with company’s ability to pay. Been around a long time, plus Grid used to buy this so there is that, lol. Takes awhile to get this one at the price I’m willing to pay, which is still too high in my opinion, but….whatevs I guess. Thought I overpaid for NMKCP, but apparently not so.
PP, I d have to look on the dividend channel, do they have a history of steady or increasing dividends? Or is it variable depending on how Ag &Au do.
Charles, I believe they have been all over the map with dividends depending on the times. Currently only a 2 yr streak of raising them, not sure about how long the streak is for actually paying a dividend. I would imagine this type of company would have stopped dividends atleast during GFC, but I don’t know for sure.
There are bids of $80 for PNMXO and $76 for UEPEP.
Picked up some NMKCP (Niagara Mohawk Power); Parent company National Grid; this morning, at 6.01% yield and BBB- rating, probably paid a bit too much. But looking to stash this one away.
It doesn’t get much better than that…
I had a partial order fill for UEPEO for $72.30 yesterday (6.22% current). I was surprised to see shares moving at that price but I’ll take them.
Nice fill. I missed that one.
Someone wants your shares of NMKCP. The bid is up to $67.50
NMKCP not on Tim’s list, but NMPWP is. Odd.
It looks like there’s a seller of KTH at $28.36. I get a YTM of around 6.5% at that price considering the accrued interest.
HMLPF news (8.75% ex-HMLP-A preferred shares; delisted, expert market, trades only at Fidelity for most US retail investors; see https://www.otcmarkets.com/stock/HMLPF/overview)
_____
Höegh LNG: Interim results for the quarter and first half ended 30 June 2024
WED, AUG 21, 2024 08:00 CET
Hamilton, Bermuda, 21 August 2024 – Höegh LNG Holdings Ltd. (“Höegh LNG”) today reports its interim financial results for the quarter and first half ended 30 June 2024. The group reported an EBITDA of USD 75 million for the second quarter of 2024, compared to USD 79 million for the preceding quarter.
In the second quarter, Hoegh Giant completed its commissioning for FSRU operations in Brazil. Furthermore, Höegh LNG and AIE announced an interim FSRU deployment of Hoegh Galleon with EGAS in Egypt for a period
of about 20 months, after which the FSRU is expected to be deployed to AIE’s LNG terminal currently under construction at Port Kembla, Australia. Hoegh Galleon arrived in Egypt and completed its commissioning in June.
Höegh LNG continues to develop its clean energy business. In June, Höegh LNG and Deutsche ReGas signed an MOU to develop a floating hydrogen import terminal in the German port of Lubmin. The terminal will be the world’s first floating green ammonia cracker, producing around 30 000 tonnes of hydrogen per year.
https://news.cision.com/hoegh-lng/r/hoegh-lng–interim-results-for-the-quarter-and-first-half-ended-30-june-2024,c4026539
https://mb.cision.com/Main/16996/4026539/2953407.pdf
+++++
TWN article summarizing release:
Reporting its second-quarter results today, Hoegh LNG said: “The demand for FSRUs is expected to remain strong.
“While Hoegh LNG has secured long-term contracts for its entire fleet of FSRUs, the business development team is in active dialogue with several potential new projects looking for FSRU capacity.”
The company said: “Over the course of 2024, four FSRUs are expected to be installed in Europe and yet another three units elsewhere.
“Following the recent surge in demand for FSRUs, only one existing unit remains available for prompt delivery in the market,” the company added.
Hoegh LNG said business development activity also remains highly related to ammonia, hydrogen and carbon capture and storage developments in Europe.
In June, the company teamed with Deutsche ReGas to develop a floating hydrogen import terminal in the German port of Lubmin which Hoegh said will feature the world’s first floating green ammonia cracker.
Hoegh LNG turned in a slightly lower second-quarter net profit after tax, down at $18.7m from $19.6m in the corresponding three months of 2023.
Total income for the quarter inched higher at $130.2m, up from $126.9m in the same period a year ago.
Net profit for the first six months of 2024 was also down at $38.4m compared with $53.6 in the first half of last year.
Interim total income slipped slightly to $258.8m, down from $264.3m in the first half of 2023.
https://www.tradewindsnews.com/gas/hoegh-lng-eyes-incoming-tenders-despite-being-sold-out-on-fsrus/2-1-1695797
I own the preferred. Concern is “whisper” talk of being acquired. I hesitate to add more as if it is sold, I have doubts the preferreds will pay. Always a risk on these securities.
I had an interesting experience with a buy order in this. I was splitting the bid /ask for an odd lot. MM held the order then executed it $1.23 better , batching it with a sell order at 15.11. I’m so used to no improvement in pink sheets and I’d think certainly not in expert market but the broker does have a best execution obligation.
Question for those with experience with this:
Of preferreds that have delisted, what experience is there with the private company not being in financial trouble but just deciding to not declare divs on the preferred?
I am always hesitant to own preferred securities of a company that any private equity company has purchased. They will screw you with a smile on their face and say it’s only business.
There are several examples taking advantage of legal loopholes or poorly written clauses. Brookfield acquired a company and was able to default on the preferred stocks without consequence because they were held in a holding company which was considered a separate legal entity even though the money was co-mingled. They’re not even a private company and weren’t losing money they’re just sharks. Buyer beware.
any opinion on Partner Re prefds?
I own PREJF. See below – it looks like they pay quarterly dividends on the common stock (owned by Covéa).
“Dividend payments on the Series J Preferred Shares are non-cumulative and the shares will remain outstanding into perpetuity unless called by the Company, which is first permissible, without regulatory approval on March 15, 2026. The Company expects to pay dividends on these preferred shares of approximately $10 million per annum in the period during which they remain outstanding.
The Company’s dividend policy is to declare and pay a dividend on its common shares at consistent levels each quarter. The annual interest and common and preferred share dividend obligations are expected to be funded using net cash flows from operating activities.”
https://www.partnerre.com/wp-content/uploads/2024/03/2023-SEC-Form-20F-pdf.pdf
I also contacted IR about PREJF and was told the following:
———————————————————————————
PartnerRe plans to continue to meet the OTC’s “Pink Limited” requirements.
“Pink Limited” shares can also continue to be proprietary quote eligible (PQE) and Piggyback Qualified – Catch All.
Best regards
Stephen Boylan
Group Treasurer
Thanks!
I’m curious to know what others think of PREJF. I own a good amount now. All was bought after the announcement they were delisting.
I’m also not sure if I have too much or not enough Lol
I’m thinking I should have held the huge position I bought around $15, but being a trader I only kept 1900 and have bought a little back at over 7 yield. Could have done an unlimited amount in the 16 ish range.
Dick, since the company has to maintain a high rating to be used as a reinsurer, I can’t see this as risky at all
I bought some of these today. Not sure if I bought too many or too few.
But that is pretty much always the case.
Do you recall which one?
UEPCO bid $95 (5.79%)
CNTHP traded as high as 56.95, current bid is 55; heavy volume. Sold 300 shares between 55 and 56.
CNTHP action is nuts! Does somebody know something we don’t?!
PLDGP also acting strange.
What could someone know that would cause them to buy it above the liquidation price? Do they know for sure that there is a 0% chance it will ever get called?
As of yesterday, 8/15, my MSEXP was removed from my account, a 50 dollar conversion fee was taken by Ally for their services, and I am waiting to see what happens in due time.
IB is still screwing around. I know of a trader who has processed abt 1000 shares through his firm.
Can you confirm your shares arrived at Broadridge and were accepted? Interactive Brokers can’t seem to successfully transfer my shares, so I may move them to Ally and do the DWAC transfer from there, if you had success.
mg,
I just emailed them a moment ago asking for an update. I am not very hopeful I will get a reply quickly. More like a few days if lucky. I honestly do not know much except what I posted above so far.
Understood. Would appreciate an update if/when you hear back. Alternatively, Broadridge indicated that upon receipt of transferred shares, they will open an account in your name and mail a statement within a week or so, so perhaps be on the look out for that as a way to confirm successful delivery.
You should use DWAC through IB. It is DWAC (WT) which Broadridge says comes with your identifying information
I tried that once already and it didn’t settle. Per IB, Broadridge didn’t ‘accept’ the transfer, and I need to inform the transfer agent ahead of time. Per Broadridge, there is no need to provide notice ahead of time, they will just accept the transfer and open an account for me based on the info IB sends. But they (Broadridge) have been unable to determine why they rejected the transfer. So not sure where to go with this. Are DWAC and DWAC (WT) different delivery methods?
I’m thinking I should have held the huge position I bought around $15, but being a trader I only kept 1900 and have bought a little back at over 7 yield. Could have done an unlimited amount in the 16 ish range.
Dick, since the company has to maintain a high rating to be used as a reinsurer, I can’t see this as risky at all
SHORT answer is yes. Broadridge told me to ask IB if the dwac option was DWAC RT , whatever that means, because then it would come with your identifying data. IB said it was. I did not try submitting because I had only 67 shares and spread was about 41. I sold , so I don’t know. I bought back 17 and was about to use Dwac… but you’re saying it won’t work.
I know BR and ib clearing spoke by phone. Ib told br they can’t provide the requested letter and that prompted BR to ask me to find out if it was dwac rt. BR has previously said he’d check and see if they could accept a letter from the shareholder, not broker. That’s when he said to Che j if it’s dwac rt.
So you’re saying dwac came back and they don’t ib can’t say why? Not good but
I can tell you why— they aren’t as competent as others
A thought: Was failure to accept prior to DTCC getting the certs cancelled ?
BR told me if you get a P number they can trace it.
I initiated the transfer on 8/13, so AFTER you had indicated the certs were located and good to go. Then I did the only dwac option there is through the IB portal. It got rejected indicating “the transfer agent did not approve your DWAC request”. BR asked for the ‘P-number’, but IB was unable to locate any such number. IB provided an alternate transaction number to BR, and the BR rep initiated an ‘escalation email’ to try to figure out why it was rejected, and I’m waiting to hear on that. I’m starting to think this requires a slightly less conventional delivery method due to the involvement of physical certs, and IB doesn’t realize that. Did BR indicate ‘DWAC-RT’, or ‘DWAC (WT)’? You mentioned both above.
Here’s Robert Brasen, who is handling for BR:
On Wed, 21 Aug 2024 19:00:06 +0000, “Brasen, Robert” wrote:
his email is robert.brasen@broadridge.com
> XXXX,
>
> I spoke to IB today and they cannot provide us with a letter of instruction to accept the DWAC withdrawal. They mentioned that you submit the request to DWAC the shares via their shareholder portal. Can you check the portal and see if there is an option to send the shares via WT (withdrawal transfer) and if there isn’t, ask IB’s back office if that’s how they send the shares when they submit the DWAC? From speaking with Michael at IB, it sounds like that is the case. This form of DWAC (“WT”) would allow us to accept the shares without instruction from the broker because it includes your information to register the shares in your name.
>
IB DWAC ( funny the transfer is the same as Trump media symbol) did not work.
I’m in contact with Bill Otteson who will speak with Robert Brasen ( both BR) when he returns tomorrow. I’m also thinking Fido would not have this problem. They always seem to be well-staffed. I wish they were public.
My DWAC failed as well. So, as of now, none of these things worked for me at IBKR:
1. DRS to Broadridge
2. DWAC to Broadridge
3. submit ticket asking IBKR to start conversion process (I didn’t think this would work but it was worth a try)
Very, very annoying. Guess I’m going to have to hop on the phone with somebody.
I’m sure Robert Brasen will get back with me.
At the instruction of Robert Brasen at BR, I resubmitted the DWAC and they will see if anything even comes through to them. I asked for an explanation of the mechanics and haven’t heard back yet. I just resubmitted and advised IB what he said.
As of today I have received this email from Ally. I will call them today or tomorrow as the chat feature did not work out very well. The guy said he would talk to his manager and get back to me by email. I figured I would call on Friday if no email.
“I hope that you are well. I am writing regarding the conversion of one of your securities from its preferred status to the common stock. We have been working to process this request however, we do need to confirm some additional information related to the conversion prior to processing the final step. If you could please contact us at your earliest convenience, it would be appreciated”
So the email was this today:
“I was able to determine the information that needs to be confirmed over a recorded line or through Chat. This information is now noted on your account. Any associate will be able to assist. Thank you for your patience and understanding. Have a great day.”
So back to chat I went and this was the core question:
“Are you okay with the shares being restricted until 7/1/2025 for the MSEXP conversion?”
I said YES and then simply asked if the shares were submitted to Broadridge yet and they stated:
“Yes that occurred 8/15/24.”
So that is about it from me about this topic. Not terribly complex/technical and I planned to hold for a year plus some days anyway. I think just holding for a year is the easiest way to avoid the mysterious 144A rules and trying to shrink the restriction time.
so they haven’t done it. hmmm. plot thickens.
I know a firm trader did get his processed so it can be done. I am going to push this along.
I have very expensive securities counsel ($1075 per hour) who is very good, but I don’t have enough to make it worthwhile to use them for this …and we can likely do it ourselves.
If I had a significant position , I’d have them handle this as well as the 12-month holding period, which should be 6 months.
?Is there a way to PM people on this site or to follow a string as I just keep checking back here
I have not been told about the year hold yet.
I have had issues with IBKR, less so with Schwab. Everything is a work in progress at this stage, no success story to share. I may have to transfer the shares out of IBKR to facilitate this. TBD…
Losingtrader,
I am not sure what you mean by have not done it? Frankly I am pleased at the pace Ally is moving on something so obscure. I imagine I will have the common shares in my account in less than 90 days from 8/15. Maybe some letter will show up from Broadridge in a week or two for some account I heard they might create.. or maybe no communication and common shares just appear. Not sure. Maybe Broadridge holds the shares for 1 year until they pop back up at Ally. Not sure again.
We all knew this was going to be a pain. The market does not give gifts like this often with no strings attached. This is probably the main reason why people forgot about these preferred besides being rarely traded.
It does seem to be moving and Ally probably said 1 year to be safe as that is the safest way to read the rules from what I recall. A more clever person can probably interpret them better.
I’m pretty much convinced this won’t get done through IB. I asked Bill at BR which firms had successfully delivered shares, and he said:
Wedbush, B of A, Schwab, Clear Street and Apex Trading.
I’m going to transfer my shares to Schwab and see if they can get it done. Bill mentioned that Schwab submitted an SCL instead of DWAC (This is a method outside of the DWAC system. It is more of a manual process on their end.)
Thanks. I will move it to Schwab if it doesn’t get done by early Sept.
Ally uses Apex Clearing I am pretty sure. I recall seeing them on documents way back in the day. Here is an example.
https://www.ally.com/content/dam/pdf/invest/clearing-disclosure.pdf
Page 2.
“Whenever we have been instructed to act as custodian of the securities in
any of your accounts or to hold such securities in safekeeping, we may
hold the securities in your name or may cause such securities to be
registered in our name or our nominee name or in the names of nominees
of any depository we use. We will perform the services required in
connection with acting as custodian for securities in your accounts, such
as: (I) collection and payment of dividends; (ii) transmittal and handling
(through your broker-dealer) of tenders or exchanges pursuant to tender
offers and exchange offers; (iii) transmittal of all proxy materials and
other shareholder communications; and, (iv) handling of exercises or
expirations of rights and warrants or redemptions. Upon instruction from
you or your broker-dealer, we will make such transfers of securities or
accounts as may be requested. Your broker-dealer will be responsible for
determining if any securities held in your accounts are restricted
securities or control stock as defined by the rules of the SEC and that
orders executed for such securities are in compliance with applicable
laws, rules and regulations”
So that is a good sign. Thanks for the info.
Some craziness lately..
PLDGP bid up to 61.5.
CNTHP bid up to 55.
Does anyone understand?!
Maine hope you took advantage!
What kind of volume was it?
I was able to get some CNTHP off at 54, only to see it hit 55! 🙁
And I don’t have any PLDGP unfortunately. That one is a true head scratcher.. seemingly w a yield below zero.
Oh, and both have had (relatively) high volume lately.
I wonder if this is available to short. Probably not, or there would be arbs on it. OTOH if thew availability to short is very limited, it can be a great trade.
CKNQP ask $99.10
Ken, thank you.
Re ;MSEXP restriction :
I’m leaning to this not being a 144 restriction, rather the IR person might have been referring to the 45-90 day delivery “restriction”. At least I’m hearing from a firm trader they are being told they can sell as soon as the stock is received . Will follow up. I’d expect this stock to be bid in size sufficient to retire the issue. I’m also thinking it should trade at a premium. I wish I’d have done 1000 .
I hope you’re right, but it doesn’t make sense to me why IR would even mention Rule 144 if they’ve already registered the shares (in which case Rule 144 wouldn’t apply).
We’ll see I guess but I’m already prepared to sit on the common, once it converts, for half a year.
IR mentioned 144 or it was mentioned here?
This was my comms today:
You are correct, brokers now have instructions and can deliver shares to Broadridge. As for the restriction notation — when requests for conversion come in from the broker, it requires a letter of instruction and Opinion letter from our General Counsel first which then enables the shares to be issued unrestricted.
Bernadette M. Sohler, Vice President of Corporate Affairs
MIDDLESEX WATER COMPANY
“A Provider of Water, Wastewater and Related Products and Services”
Phone: 732-638-7549
bsohler@middlesexwater.com
> IR mentioned 144 or it was mentioned here?
LT,
Remember the conversion request letter you posted a few days back? Check subsection (iii), which says the requestor acknowledges that:
> (iii) the Common Stock issuable upon Conversion shall be considered “Restricted” subject to any applicable restrictions imposed by Rule 144 promulgated under the Securities Act of 1933, as amended.
From there, take a look online at what it takes to lift Rule 144 restrictions.
thanks
MSEXP: see sandbox for the definitive final update. sorry i posted in the wrong place
HAWEL – looks to be at 7.14% yield. I bought a little bit. There seems to be some bad news about them not having 1/2 of their 4B fire settlement financed yet. There’s a risk.
Do you or own due diligence, read the articles and this is not a recommendation.
There is a very eager buyer of CNTHP @ $54. Just a heads up.
Thanks for the heads up. I accidentally bought this one at a price above the liquidation amount. Now someone else owns them at a price even higher than what I paid.
Thx Maine. I hold many of these oldies but goodies. I bought around $50, and since i hold many of the other varieties, i let mine go today as it is too much above par. My others have been bought in the $30’s, so they will probably forever be in the drawer.
MSEXP update : I’m told by a trader at another firm the shares are now eligible to DWAC. You should go ahead with your transfers as the reason the spread is narrowing is my friend is bidding. That’s my advice . If it doesn’t work I’d send the shares to fidelity and talk with their back office. Also, this advice is free. Real advice you have to pay for.
MSEXP non update. Nothing new to report. Yesterday a trader friend told me Broadridge is waiting for the certificates, which we knew.
He told me he was buying MSEXP this week. I noticed the arb spread at $67 or 69 the other day.
Thanks LT.
Here’s what IBKR told me about why my DRS to Broadridge got canceled:
> The Transfer Agent rejected the DRS transfer for reason: “Invalid Direct Mail Code.” We were previously advised that this rejection message refers to the mailing address at the Transfer Agent. Please reach out to the Transfer Agent to inquire further and resolve.
Honestly, at this point if the spread narrows enough I will just throw in the towel and sell, even though it’s leaving a lot of money on the table. It’s a very frustrating process.
Should be dwac eligible. I have just a few shares . I’m waiting to here about 144 period .
144 restrictions should be able to be stricken after six months unless you’re an insider.
You also have to ask the company to do it, it doesn’t happen automatically, so that’s fun too.
I am aware of someone whose back office has properly submitted the shares and the process of the 45-90 day period has begun.
Just submit now and we will see if we get the identical answer.
The company told me the restriction will be removed as part of the process of conversion. I’m just going on what the very knowledgeable IR person said.
Hi Losingtrader,
Have you been speaking with Bernadette? I’ve had no luck getting meaningful responses from MSEX. It’s always.. “we are working with broadridge to get this sorted. Please be patient.” I also call and the phone keeps ringing.
I do believe you, so please keep the communication coming, it’s just weird they aren’t updating other shareholders that inquire.
Yes, but best info has been from talking to Broadridge by phone and email and my contacts at a professional trading firm that was previously self-clearing and therefore has top people who a trader personally knows and can take care of matters like this.
I just emailed BR and will post response but a trader told me the shares can be dwac’d and they had submitted theirs
CNLHO ask yield 6.25% at the moment. I’m not going after it.
Not a recommendation.
Sold HAWLM (Hawaii Electric) late yesterday to pick up some CNLTP (Connecticut Light & Power–6.25%) this morning. Just taking some profits (~15% in less than a month) and upgrading rating a bit.
Also sold HAWLL(Hawaii Electric), also held less than a month, ~21% gain. Looking at maybe adding to CTA-B with the proceeds. Not sure if that will be a success, CTA-B is a stubborn bast%rd
Pig, they are stubborn until they aren’t. keep your head down and keep chipping away.
BTW, I heard your father stuck it rich. Hope he has bought you a steak dinner or two.
What’s the history of power companies with similar problems like Tokyo Power, PCG and Edison? GPU went chap 11?
Pig – CTA-B is finally catching a bid today. We’ll see if it finally moves higher as the fed pivots.
Dick, thanks for heads up, that one was off my radar. Also KIM-N lately finally moving. Rare for me to have one stock in all 4 retirement accounts that I own, but KIM-N is in all of them. CTA-B in 3, that is rare thing as well.
Dick,
Rida on SA gave the two Corteva Preferreds a push this morning. That may be helping the bid.
I have some CTA-B. Always makes me uncomfortable when Rida Moron even mentions anything I own.
I picked up some CNPWP at $32.95 yesterday for a 6.191% yield. I have added at better pricing but still not bad.
So, was it someone here who bought my SOCGM today? FIDO shows last sales July 25th had a cost basis of about 24.95
MSEXP update
from my email with Broadridge late in the week
Mr. XXXXX,
“The grapevine is correct, they did locate the certificates and are in the process of completing their reconciliation. My hope is that they will put Broadridge in a position to accept DWAC’s mid to late next week.
I am going to be out of the office next week, but my associate, Robert Brasen who is cc’d on this email, will let you know once everything is good to go.”
I’ll update when I can but I’m going to Cabo Tuesday or Wednesday .
If anyone needs any drug deals or contract killings, please let me know and I’ll provide pricing accordingly,
Cheers.
That last part is my joking comment. It occurred to me someone might think it was in the BR email
In honor of Grid, I thought pick up some UEPCN (6.19% yield, middle of Ameren pack currently). By my calculations approx 10% of the float has traded today on this one.
I miss grid. Does anybody know why he is not posting anymore? I hope he is alright.
He is chilling. I chatted with him very briefly on the other site a couple of days ago. July/Aug are such vacation months. Surprised more of us are not disappearing for weeks at a time.
MSEXP update:
Broadridge advised a clearing broker that DTC has been able to track down the original certificates dating to 1984.
“Hopefully they will be able to advise Broadridge with the …documentation needed to allow brokers to DWAC their shares….hopeful we will see something by mid next-week…”
I;m quoting off a broadridge message forwarded to me by a trader
Thanks again for these updates LT.
My shares are currently in DRS limbo at IBKR so hopefully we’ll see things get in motion soon.
losingtrader -Thank you! These are better updates than my correspondence from Schwab and IBKR- both claim I need to get the stock cert directly myself, then transfer to Broadridge, they aren’t DRS eligible yet. And this is after many many calls with them. And the company has gone silent on me.
Based on my understanding, this change will allow us to transfer to certs directly to Broadridge, is that right? Ideally, we don’t have to transfer, we can do the conversion direct in our brokerage.
I think the idea is DTC will cancel the certs. Tell IB they can suck an egg. They have lost track of one of my transfers of 11 shares and are telling me it’s out of their hands. They don’t have the shares, Broadridge doesn’t have them, and they weren’t returned by DTC
I told IB I’m calling every day and expect a different answer every day until the cycle of usable answers runs out.
You should tell IB it’s THEIR responsibility to get the certs because the broker from whom the trade was made failed to effect good delivery (which required certs) . They can eff themselves and I’m closing my 18 year account with them
Wow, I am surprised that those certificates were not destroyed during hurricane Sandy in 2012.
A ton of old paper certificates were destroyed by floodwaters in the basement of 55 Water Street in Manhattan.
Regarding MSEXP conversion, I had asked the company if it had any objection to conversion to book entry. The answer is that they do not, and they prefer book entry.
I had assumed this , however if they had objected I believe they could have stopped the conversion.
My position is tiny in this.
I think the convert should trade at a premium to the common, even with a long holding period .
Picked up some CNLHO today at $36 (6.25%)
Nice add! I saw those but I’ve been adding to PREJF. The current ask is $17.20 (7.09% current yield)
Dick, what’s the story with PREJF? Perhaps I heard it wrong but last I heard they were going dark (The former PRE-J); or expert market 7.1% seems like it may be low if headed to expert market. If it stays OTC I think 7.1% acceptable and in fact I’d be interested.
It’s listed as pink current information by OTC.
PROPRIETARY QUOTE ELIGIBILITY
PQE Status – Yes
PQE Reason – Piggyback Qualified – SEC Reporting
Does anyone know why this one says it is “piggyback qualified”? Is it due to the fact that ParterRe has several bonds that trade OTC?
https://www.otcmarkets.com/stock/PREJF/overview
Dick just curious, what are the bonds?
Do you have the symbols?
70212JAA3 is one of them. There are some others that come up when you search by issuer on the FINRA site.
Thanks Dick