NiSource New Preferred Trading

As noted by our reader ‘Retired’ the new NiSource preferred issue which priced yesterday is not yet trading on Fidelity–BUT we have an modest order in on the eTrade system and we suspect it is available everywhere except Fidelity where they seem to have trouble being timely.

There are interest rate risks in a few years with this issue, but we are comfortable owning a modest amount for the next couple of years.

Shares are trading in a 24.70 to 24.90 with about 1.1 millions shares being sold as of 8:35 am.  This is a 20 million share issue.

17 thoughts on “NiSource New Preferred Trading”

  1. Yes, fidelity is a little slow but it’ now trading. I also have an order in. Hard to know where to price my bid but it should be interesting to watch this one today. On the one had you have a regulated utility (good) but also a company that has politicians calling for the heads of both NiSource and Columbia Gas, it’s subsidiary in Massachusetts to resign (bad). The latter will eventually fade into history so I tend to look at the fact it’s a fairly large regulated ute and run with that. I tend to hold rather than flip and this seems a good hold for my portfolio.

    1. I plan on holding these 400 shares. You dont get these types of QDI ute preferreds issued at all anymore. Granted I would have preferred the 6.5% fixed, but it is what is.

      1. Vanguard still not recognizing, but lowly TradeKing did, so I bought mine there. 400 shares at $24.88

      2. I joined you for 400 shares and figure this is an income security to just hold and see how it reacts to the year end trading. I got 2 calls from “full service” brokers trying to push to sell shares. When I asked them why I would pay $25 when I just bought my shares at $24.80, you could here their backpedaling. One of these helpful “full serviced” brokesters told me “no one” is able to buy shares under$25 today! Wishing you profitable investing, Nomad

        1. Nomad, I met several full service brokers and retired ones on golf course. Amazing how little they know of anything except what the company is peddling…And preferreds? None of them really even followed them.

      1. Steve, I know damn near every ute preferred ticker by memory. And they just dont issue these QDI preferreds much anymore. It has become an anacharistic way to finance for utilities. EIX has issued a couple in past couple years in lower 5% yield range and Alabama Power also had a 5% one. Before that IPL-D in 2013 issued a 5.1%. Granted I would have preferred fixed and financials more in line with an Ameren or WEC. But they still have the regulatory backing being a 100% regulated ute and actually plan on raising common divi ~5% or so next couple years annually. So they fit inside my comfort zone. I will take it as waiting for a prestine ute preferred to be issued plus 6% just isnt going to happen.

  2. I too jumped in for a piece of this issue
    Thanks for heads up to all of you. This great site by Tim is my new favorite web hang out

      1. FYI, contacted Schwab about an hour ago and just received a call back that they had now input the symbol and is available for trading on their platform now. Placed a limit order, will see what happens. Thanks to all for discussion regarding this issue, both pro and con.

        Monk

  3. Something some people may want to watch if on the fence with NISOP. As Tim mentioned this is a 20 million float. About 6 million have publically traded since issuance. I have no idea how many have been sopped up by institionions, but sometimes at the end underwriters will dump the few remaining shares whenever that time comes. Sometimes one can get an even better bargain waiting. It has drifted down a bit. I probably will buy a couple hundred more if there is a mini dump off.

    1. “Institutions”….not institionions… I can usually spell. I just cant type or proof read, lol.

    2. Brought some today at 24.83. I now have 3/4 of my planned purchase. Good idea to track volume and buy final 1/4 when it closer to 20mm shares

    3. Grid, I have a GTC bid in to double my position @$24.55; if the NISOP preferred gets there that would be great and if not, I still have a smaller position with a 100% regulated US utility monopoly. Was a HUGE principle increasing day for my portfolio today and I had 2 nice large flips last month. Going into December my portfolio (minus cash) total return was +12.44% and I’m just hoping to buy up a few positions if there is some aggressive tax loss selling. Stay tuned, Nomad

  4. I bought 200 more today at $24.80 Picked up 300 the day trading started at $24.88. If the price can drop to $24.50 I will look to pick up another 500. That’s my limit and double my normal allocation. I hope you’re right Grid. I’d love to have more but I won’t buy above $24.50.

    1. Retired, I will look to maybe snag 200 more myself somewhere around yours and Nomads price point too. If it doesnt reach it, I am fine. The 400 I have will be a long term hold for sure.

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