Nothing Can Keep This Market Down

We are back into a period where each day you wake up and the equity futures are up 1/2%–and then over the course of the morning they move even further higher. Obviously the coronavirus is no longer a headline–BUT this thing could flair up again and only a fool ignores it in total.

I look at the REIT indexes and they move higher and higher–the folks writing on SA on them are ‘heroes’ (in their minds) and others writing on junky stuff are also hero’s–or at least they are will take credit for good gains while shunning their lousy picks. A rising tide lifts all boats!

I am stuff watching my preferreds and baby bonds–directionally moving higher, but with smaller and smaller coupons being presented to us for the future.

Oh well – just give me my 6-7% annual returns–year in and year out–I would be ecstatic–even gleeful.

Folks on the site are mourning in advance of the pricing of the new ATT (T) perpetual preferred–they know the coupon will be inadequate–maybe even worse than inadequate considering it will be rated junk–just below investment grade.

Others are talking about the dividend capture on UMH-D–it goes ex dividend Friday for almost 40 cents and is trading at $25.05. It has traded within 2-3 cents of this level for weeks. UMH has to be in the ‘hated’ category of REITs–investors hate that the company, which is in the manufactured home site group, owns bunches of shares in junky REITs. Quite honestly they should sell those shares and pay debt or give it to the shareholders–but from a preferred stock investor perspective with a decent economy this 6.375% coupon is a gift almost–I have bought it 3 times recently (in my higher risk basket).

It is incredible how popular some of the segments on this website are becoming–we have reached a point where the Reader Initiated Alerts page is the most popular page on the site (after the homepage)–followed by the Sandbox Page and then Sock Drawer. No real surprise here–it is where the folks with knowledge and experience hang out–there is no better group to hang with–wish I had more time to do so.

The website is around 2,600 pages now, which means I have less and less time to invest while I do more and more (in the background) of the website. Oh well there will come a time when I can spend more time in discussion than on administrative.

16 thoughts on “Nothing Can Keep This Market Down”

  1. Thanks Tim
    The point is that they know their Portfolio , outside their main business, has been a drag on their financials, and
    they ‘intend’ to dispose of the holdings.
    However, when, I don’t know.
    Howard

  2. Tim
    Thank you again and again for keeping the site up and moving. We all owe you a debt that we can not really repay. You make the complex issue of investing a bit easier. Thank you. SC

      1. Tim
        for what it is worth, my wife often asks what I do all day as I seem to be busy but she has no idea how my time is occupied. I think it is fairly common
        phenomena. As people ask when will I retire, my thoughts generally run to I’m having fun why change things? Be well, prosper sc

        p.s. on a more substantive note. It is beyond our pay grades in a way but it might be interesting to put together a group of equity holdings in some of the utility or financial firms whose preferred are in the sock draw. It is a major project but might be interesting. Interested in your take. sc

        1. sc, I’ve been working on this for some time though my read is the ute equity prices are much too high – like most everything else. For example I bought SO heavy during 2018 in the low $40s/share and was happy with the 5%+ divvies (also QDI of course), though started selling SO when it recently topped $65. Same with other utes in smaller amounts and shorter time frames. I don’t mind securities I’m holding being over priced, though not at stratospheric levels. I know nothing, but my read is they’re priced like growth stocks instead of like slow-grow utes.

  3. Does UMH-D have an active ATM or something? Weird that thing won’t move right before Ex.

    Joined you in buying.

      1. Decided to sell my holding of UMH-D essentially at breakeven.

        Not comfortable with the huge volume of selling only 2 days before XD, unwilling to take any chance of unexpected bad news.

        Just prefer to sleep well at night.

        1. Inspy, nothing wrong its just doggy. Common is up last month UMH-C up past week and D is call trapped. It will show a quarter gain minny by a few days after exd. Its just a woof woofer. Im hanging in for that dang quarter!

        2. inspbudget–I think most of the bad news is baked in–since they did huge write downs last year. I hope to see a bounce after ex, but if I have to hold I am ok with that.

        3. It’s the ATM Inspbudget, I can almost guarantee it. Look at their other Preferred Issues. I don’t think you have anything to worry about.

          1. Based on Ken, Tim & Grid’s replies, changed my mind, decided to take a gamble and bought 200 shares UMH-D right at market close, paying $25.04.

            Hoping to be able to turn a quarter like Grid in due time.

            At worst, I’m stuck with a 6+% paying issue, with a cap gain ( after Friday ) should it ever be called.

            1. I think it’s a pretty safe move. Anyways you don’t have to worry about a call for 3 years if ever. I can pretty much guarantee they call the B Issue in October though, no idea why anyone wants to own that up here. Probably will issue another Preferred at that time if they can get a similar rate or lower than they got with the D.

  4. Tim; I know what you mean about this market. I bought the common stock of both “MA” and “V” at their respective IPO’s way back in 2006 and 2008. They togethor have changed my life as both are up well over 1,000% respectively. I remember a good friend of mine riduculing me for adding more shares of “MA” when it was at $90 a share a few years ago. Now, its over $333 a share. When I bought both I did the proper homework and never looked back. I do think at some point I will need to trim both down quite a bit as even “Oak Trees Don’t Grow to the Sky Forever”. I don’t hold alot of HOPE in finding fixed income investments that meet my “criteria” anytime soon. Very difficult environment indeed.

  5. It was my understanding that UMH/the Landrys had intended to divest their Reit portfolio. I am unaware if they have done so yet. * I own a preferred issue of UMH.

    1. Howard–I took a look recently and believe they were still holding–but of course the filings were a few month old–they don’t worry me too much for a holding which I will not have too long (I hope).

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