Personal Buys/Sells for Last Week (Ending 12/14/2018)

Last week we made 2 purchases in our personal portfolio.  We made no sales as we have plenty of available cash in money markets.

We added a few shares of the hated Spark Energy 8.75% fixed-to-floating rate preferred (SPKEP) to a position we have had for quite some time.  We simply couldn’t resist the pricing and the current yield.  We paid $21.95 and of course it continues to fall ending the week at $21.25 and a current yield of 9.99%.

In addition we purchased a starter position in the American Homes 4 Rent 6.50% perpetual preferred (AMH-D) for a price of $22.65 and it closed the  week at $22.53.  The current yield is 7.21%.

It is likely that we will lay low this week as the continued fall in perpetual type issues–and even many term preferreds and short maturity baby bonds has been plenty painful.

As we have previously noted we are moving slowly into some perpetual preferreds to raise our income from the lower coupon term preferreds and short dated baby bonds, but we may be a bit early in our timing and some pain may be incurred.

25 thoughts on “Personal Buys/Sells for Last Week (Ending 12/14/2018)”

  1. -0.8% down yesterday. I never liked the Jay Powell pick since he is 1st fed chair who is not an economist. I now detest Jay Powell and his stupid ass comments in October that we are a “long way” from neutral. I hope he stops the rate increases after Wednesday but here’s the question and I fear the answer. Has the market turned on him and will he best trusted? I suspect, he has lost a lot of credibility and will be labeled as a hawk no matter what he does. But, if he stops rate increases now, suspect the bond market will recover but will maintain a nervousness towards the fed. So I for one do not expect a V shaped rebound. I think it’s a U.

  2. Spent the last 2 days traveling north for the holidays, glad I missed Mondays dip. Right now after last week, I am planning on doing nothing until the knife is down falling. Last week, I added both BC-B ans NISOP – moving up to my full positions

  3. On CNBC, “The Bond King” (sure, right), Jeffrey Gundlach just predicted that the 10yr would be at 6% in 2021.

    Whew! Before he was done speaking for the hour, the Dow had dropped ~11x what it was down at the start of his spiel.

    FWIW

    1. G, he was sure a Debbie Downer, lol..
      My CHSCN is getting hammered today. And my also small purchase of SRC-A is getting taught a lesson today also….Ouch…But I did sell my PLDGP shares for easy profit holding a couple weeks today. It went exD today, so I snagged a quick buck profit and also get the plus $1 divi also…I dont understand why people pay up on exD date and dont get the divie…Oh well, I appreciate the gift.
      Sold my 400 shares of KTN and snagged 300 right back 50 cents cheaper this same morning. Wish I could do that every day, lol…Looks like I lost a 100 shares though as someone is above my current bid now.

      1. Good job with the flips, Bird. I sold some HRL this morning for a $712 profit and parked the cash in KYN.F, which gives me 2x the yield of HRL with a guaranteed return date on my $ (if I hold it in there until redeemed).

        Our NSS is down to a fresh 52 low today…

        1. I have been a bit negative on NSS a while. I still own it but in modest portions not outsized like I have with ALLY-A. NS just hasnt smelled right in a while with their poor capital structure. I think the market has figured out it is really a preferred stock for all intent. Not selling what I have, but not adding on the dip either.

          1. Grid–not adding any more on any dip for this week–it is a losing battle I think.

            1. I hear you…But, I confess, I did double down on one stock at $24.95…Does doubling down on KYN-F really qualify as a double down? 🙂
              No Ma’as! My major beat downs today were NSS, CHSCN, and SRC-A. None are in my big holdings category, but they feel so much it was noticed, lol…

          2. I took a vacation for the next 2 weeks. The past 2 weeks in anticipation of a sell off, i have been unloading a ton of SSWN and KYN-F with limit orders sitting out there. I had 20,000 shares to unload, and finished that up late last week.

            Time to spend some of that cash. I bought some toys today on the dip in issues. PSA-Z (added to some I had), ALLY-A (new), BANC-E (new), REXR-A (new), AFC (added to what i had), COF-C (new), INN-E (new).

            I spent about 25% of the cash I had. I noticed that some issues had larger trading volumes, so this is a sign that we are heading towards a bottom. Instead of trying to time it, I will be buying all week.

            1. Go get em Mr. Lucky…I like your style…You could have thrown me a bone and tossed me some KYN_F at 24.50 to have expedited your selling process though. 🙂

            2. Mr. Lucky–looks like you are going for some decent quality—I’ll let you buy this week and maybe I’ll join you next week.

  4. Anyone know why CLNY and its preferreds are getting hammered? They had a decent recent quarter so I’m thinking it’s tax loss selling maybe?

    1. I believe CEO Tom Barrack was chairman of a certain inaugural bash enterprise couple of years ago, may have no causal relationship, though. Correct me if I’m off on that.

  5. Hi Tim – thanks for reminding me of SPEKP. I’ve been long 200 shares for a while and was just kinda grinning and bearing it as it went down. Good suggestion to average down. I added 60 today at 20.40, a week or so before ex-div. I reviewed the company website first and still can’t find a reason for it to trade so poorly. I was not going to do anything for a few weeks but that seemed reasonable. Thanks, hope you don’t mind me riding your coattails.

    1. timdman–average last weeks average down I am putting a stop on more until we can get a little more clarity.

  6. Tim,

    Why not AMH-F, which has the same current yield but is trading much lower to par? This would give greater capital gain upside if they are called away, although the company would likely call away the higher interest issues first.

    1. Hi Hang–in my way of looking at things the D issue is most likely to get called away–I like that. The F issue may well never get called. This means that the D issue may move toward $25–totally dependant on interest rates in the future–as it nears the 1st call date. The F issue may well not move toward $25 as the 1st call date approaches — again totally depending on interest rates in the future.

  7. Hi Tim,

    Trying this again, having issues with my posts showing up for some reason.

    I was just wondering why RLJ-A isn’t listed on any of your Preferred spreadsheets?

    Thanks for the service you provide.

    1. Hi Ken–if you haven’t posted before I have to approve your 1st post-that is why it hasn’t shown up.

      1. Sounds good Tim, thought it might be an approval thing. You’ll see a few repetitive posts from me, disregard. I’ll stick with Ken as username.

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