Monday Morning Kickoff

Nothing to write today as I have been out of the office for 4 days and arrived back to the office at 9 last night. I need to figure out what is happening in the markets etc before writing so hopefully as the day goes by I will bet in tune.

The one items that reader Nomad noted our Global Partners 9.75% f-t-f got sold last week as the shares hit 25.99 and executed our good til cancelled order at 25.90. Likely we would have moved this gtc order higher if we would have been in civilization–but we were out of cell phone range with limited access to internet as well. Oh well we will watch to see if there is a potential re-entry in the days ahead.

14 thoughts on “Monday Morning Kickoff”

  1. Tim,
    Looking at your master list something caught my eye with regards to the the preferred issued by Hawaiian Electric. The yields seem off as these are $20 par value issues. I think maybe the current yields are reflecting a $25 par value.

    1. Yes–they were driving off $25–instead of the correct $20–got them fixed.

  2. Does anyone have any thoughts on the Pacific Gas & Electric preferred issues that currently have their distributions suspended ? A few of them look tempting for long-term holds if the company doesn’t declare bankruptcy…big if I know but thoughts ?

      1. Welcome back Tim. Hope you had a wonderful vacation. I’ll be waiting for a comment from Grid on these. I see they recently priced a public offering of common at an issue price of $51.90 yet today I see the common trading at $44.94. Something is up.

        1. Yes Retired, we were all jealous of Tim and glad he is back working! 🙂
          I only know enough to be dangerous with PCG. And currently I cant play here. A few weeks ago PCG floated a possible idea of breaking up company and throwing all the debt onto it. In other words sending part of the company into bankruptcy. If they put those preferreds in that division, they may become totally worthless.
          One of the options PG&E is considering is breaking up the company so that only one division files for bankruptcy, thus sheltering the remainder, according to the report.
          I cant take the chance they toss the preferreds into the trash bin company.

          1. Analysts said this around first of this month…
            Analysts at BofA Merrill Lynch say filing for bankruptcy of just the electric utility would place “a substantial portion of equity value at risk, leaving just the FERC-regulated transmission (~$14/share) plus gas utility (~$9/share) businesses.
            So I suspect the preferreds would go with the electric utility since that is where they originated from. The preferreds are not holding company preferreds but from the actual utility company itself.

          2. Yes Grid, I read that also. On the Investor Relations page they infer the Preferred’s belong to the Utility part of the holding company. It’s why I hesitate to jump in. California’s interpretation and use of “Inverse Condemnation” being applied to private utilities and the CPUC’s stance on allowing cost recovery kind of puts a damper on my picking up PGE/PA…but it sure is tempting. I’d have to have some reassurance that California politicians and the CPUC make rational decisions…I can’t get there so I guess I’ll pass. Thanks for your thoughts.

          3. Retired, I would not take too much of a chance on rational behavior by California government; they have mostly swung to the side of popular sentiment at the expense of corporations. The large fires currently devastating Mendocino and Elsinore indicate that such risks will, and continue, to remain front and center. I used to hold a few PCG preferreds but have long since sold what I had.

  3. Did 100 shares of MSEXP go for $140 today? Grid, you mentioned them on SA as one of your low-liquidity plays from a list of 50 or so, right? How does one go about developing such a list? New here, so sorry if this is commonly known…

    1. Geo, unfortunately I didnt get those. I have some but not a lot. Earlier this year I bought 100 at 140 and sold at $182.50 about 2 weeks later….I am not that sentimental with the stock. I wouldnt waste a lot of time chasing. There are only 780, yes seven hundred eight shares in existence. It has went 10 years before without trading before.

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