We are easy to please–we mostly invest for an income stream and nothing makes us happier than to have a pretty quiet week where the average price of the preferreds and baby bonds remain kind of flat.
As we already noted earlier we have some movement in individual issues–up and down 25 or 50 cents, but by and large most shares are moving up or down less than 25 cents.
We note today that the preferred issues from mall REIT Pennsylvania Real Estate (PEI) have been moving quite a bit. They have 3 issues outstanding and 2 of the 3 are off by over a buck today. Of course PEI being a mall REIT has seen significant selling going on for a long time–all 3 preferreds are trading with current yields in the 10.5% to 11% range. Is there an opportunity here? Maybe–but the sentiment on the mall REITs is so bad that even a quick ‘flip’ is risky–these are the type of issues that you try for a quick flip and then get stuck as it continues lower.
Shippers are another weak sector today. The Costamare (CMRE) preferred issues have gotten knocked down hard the last 2 days with losses over $1/share. The Teekay Offshore Partners (TOO) preferred are back down after a big fall, bounceback and a continuation of the fall. The Dynagas LNG Partners (DLNG) preferreds are weak also (DLNG-A and DLNG-B)–longer term the Dynagas issues may be pretty decent to hold with current yields around 10.3%.
So it has been a good week–stable prices, with a few gains–and little to no snow on the ground in Minnesota with 30-35 degree temps. These items leave me in a good mood for the weekend.