Mid Day Rambling

Nothing much to ramble about today as all markets (interest rates and stock markets) are pretty quiet—plus we are very busy–way too busy.

A quick skim of the $25 baby bonds and preferreds doesn’t show much at all–1/2 to 1% moves which are typical on any day of the week—illiquid stocks always move this way.

GDP, employment cost and consumer sentiment were all about as expected so these haven’t had a real impact on the markets.

Going into the weekend it is nice to see the N Korea/S Korea issue being handled in hopefully a sane manner–although longer term this remains to be seen–but regardless it is a nice respite from nasty tweets etc.

8 thoughts on “Mid Day Rambling”

  1. Tim, here is a clip from this weeks conference call from FISI, which issued that sweet 8.48% cummulative non redeemable preferred (FIISO) from the 1990s…As I suspected, they will be prying these from my cold dead hands!

    Kevin Parks

    So just a question on the preferred, I understand it might be a delicate subject you have embedded some generally owned by the Humphrey family, but to what extent is refinancing are taking out the preferred a part of the conversation either at the Board level or just kind of from our management team?

    Kevin Klotzbach

    Yes, so there is not condition upon which we can cause the preferred to be automatically redeemed. And there has been and could be discussions about potentially offering a price, but nothing has been decided.

    Kevin Parks

    Got it. And would you I guess hypothetically speaking in an instance in which you would tender forward or offer a premium forward. Would that kind of necessitate would be a refinancing or were take it out of cash on hand, equity raise. How do you guys think about that?

    Kevin Klotzbach

    The way that I choose to think about it is if we are producing a 10% approximate return on equity to our common shareholder and we have preferred that we have no control over, that we pay a lower yield on that is to the financial advantage of the common holder. And so when you start talking about paying a premium, when that premium then causes you to have a negative outcome with respect to a preferred borrowing rate if you want to look at like that as I do, than that would not be attractive to me.

    Kevin Par

    1. How did you manage to snag that one ? I tried to look at a chart of its trade history and it came up with blanks. When was the last time it had a trade ?

      Also, it appears we have multiple Richards commenting on Tim’s site so I’ll change my name to RW.

      1. It traded last June I think. I guess about 3 years ago, I was digging deep and found it. I bought a couple hundred one at $90 and then $100. I had to call brokerage to call exchange floor to “find them” as its a grey market. Then I told Inspbudget who posts here and he grabbed a few hundred, then another friend I told and he got a 100, then they were drying up and I bought 100 more at $110….When bank was organized in late 90s these were an insider family “goodie bag” sell, all private transaction. A ticker was later assigned and a few dribble out. But you have to call broker and have them call down to the trading floor and ask various market makers if they have them.
        I should have bought more at the time, but was flying blind a bit on understanding the issue. Heck I could walk right into one of their banks and wouldnt even know I owned their preferred, lol.. I do know they go by 5 Star….Never been to New York so I doubt I ever will walk into one….They always pay…..even through the bank crisis.

    1. Wow–I see someone dropped some big blocks that last hour and then it was back to 25.06 at the close. You can see it here


      I’m not sure what is wrong with some of these sellers–same with Spark–it does ok and then some fool puts in a ‘market’ order for 100 or 200 shares and gets robbed.

      This OFSSL deal is different–some big blocks–had to be an institution.

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