READER INITIATED ALERTS

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421 thoughts on “READER INITIATED ALERTS”

    1. Looks like an ETF/bigger $ rebalanced out of MREIT Preferreds today into midstream preferreds. Names like AGNCO and NLY-I down, while Preferreds for ET, DCP, and CEQP up almost 1%.

  1. New Issue: Morgan Stanley (MS)
    Preferred Stock, Series O
    $250mm
    Perpetual
    4.375-4.50%

  2. New Issue: Eagle Point Income Company

    Term Preferred Series A – EIC.A

    $25 million

    Egan Jones: BBB

    5.000 – 5.250%

    Monthly Payout

    Maturity: 2026

  3. After partial redemptions in May and July, the last remnant of my position in ALLY-A was finally redeemed on Friday. Bought at 25.33 back in March as a short-term(?) cash play when I heard here that it would be called (thanks folks), an IRR of 2.4% sure beat keeping it in cash.

  4. DEAR FELLOW SHAREHOLDER,
    Highland Capital Management Fund Advisors, L.P., adviser to Highland Income Fund (the “Fund”), has decided to withdraw the proposal to convert the Fund to a diversified holding company. While your Board and Executive Management Team continue to believe that converting your Fund from a registered investment company to a diversified holding company is a better long-term business strategy and represents the best path to increase value for all shareholders, we have withdrawn the conversion proposals from the adjourned special meeting of shareholders (the “Special Meeting”) on October 15 and have canceled the Special Meeting.

    Which in my opinion is good and explains the pop in share price today. FYI for anyone holding. HFRO.A

    1. Thanks fc–I was tired of them calling and leaving me messages on this–I would have been a seller if this went through.

  5. The Gabelli Healthcare & Wellness (GRX +1.1%) announces the issuance of 4M of 4.00% Series E Cumulative Preferred Shares, non-callable until December 26, 2024.
    The aggregate liquidation value is of $40M at $10 per share.
    Distributions are payable quarterly, beginning December 26, 2021.

      1. Martin – seems like a good time to be cautious. Sometimes they seem aggressive on calls yet the GUT issues are both callable and they sit. The 5.625% issue – callable since 2008 trades at $26.80.

        1. I have GGZ-A at 5.4%. Seems like a call candidate though it is a small issue.
          And GGN-B at 5% may be safe for now but for some reason it’s not a Qualified dividend so I don’t really want it.

    1. That’s a suprisingly low coupon. Gabelli just issued a pref at 4.25% rated Aa3.

  6. GLADL

    Kind of a boring day…..but

    My par limit order just filled if anybody else likes the ST paper.

    1. They are called for Nov 1st. Wasn’t ex-div date yesterday? So anyone buying today will just make a few pennies from whatever they purchase below 25?

      1. fc

        Well boogie boogie boo, you are right. My kingdom for a decent call database.

        Are you a financial consultant fc? That is what they used to call stockbrokers because no customer knew what a registered representative was.

        Thx

        1. fc

          I was able to sell GLADL and make .04 a share. Thanks again.

          I bought OFSSG too today at penny over par. Hopefully, I didn’t miss the stoopid call on that one!

          On another note tonight GO DODGERS…wooohooo

            1. Thanks ken,

              Oh boy, well I’ll dump OFSSG manana (tomorrow). There goes my .04 cents on GLADL.

  7. Anyone have any info on AXS-E being called? I can’t find anything and I tried to call IR and didn’t get a call back. It’s trading at $25.11. Not a lot of call risk at this level. Thanks

  8. Vistra (NYSE:VST) announced a new $2B share buyback program and the pricing of a private offering of 1M shares of its 8% Series A Fixed-Rate Reset Cumulative Redeemable Perpetual Preferred Stock at an offering price of $1,000 per share.
    The annual dividend rate on each share of Preferred Stock is 8.0% from the original issuance date to, but excluding, Oct. 15, 2026.
    The company will receive gross proceeds of $1B from the sale of the Preferred Stock before.
    The offering is expected to close on Oct. 15.
    The company intends to use the net proceeds to repurchase its common stock beginning as early as early November 2021.
    In addition, Vistra’s board adopted a new $2B share repurchase program, effective immediately, superseding its prior $1.5B repurchase program, which had ~$1.33B of remaining authorization.

        1. VST is not a regulated utility, it is primarily operating in unregulated power markets as a merchant producer, plus has a retail business. Much different than a utility. The stock is cheap due to losses relating to Texas freeze this spring, plus the general volatility of the wholesale power markets. I own the common and would love to own this preferred, but its institutional QIB only, and as of yesterday was already trading at 105. Basically they sold the preferred at 8% in order to buy stock with a 25% free cash flow yield. That said, its definitely not a utility. I like the common (liked it more at $16-$17), but it is subject to a surprise here and there.

          1. And voila! Better earnings per share after they repurchase a slug of the common…
            At least they aren’t issuing debt to buy back shares to improve their EPS like some other companies are…Cough..Apple..Cough…

  9. TGP-B the TGP’s 8.5% coupon preferred that whooshed down from $27s to trade as low as $25.03 last week on TGP’s buyout by private equity is now slowly heading back higher and now trading $25.8x.

    Anyone have any recent news on confirmation if going to continue to be traded on exchange and speculation if it goes back to $26s?

      1. Thanks J for the SEC note from the 4th. The relevant para in that being:

        Each 9.00% Series A Cumulative Redeemable Perpetual Preferred Unit and 8.50% Series B Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Unit of the Partnership that is issued and outstanding immediately prior to the Effective Time will remain outstanding immediately following the Effective Time, and no consideration shall be delivered in respect thereof; and

        Unfortunately, sort of not too clear that the TGP-B how long TGP-B will continue to be listed and if full dividend will continue to be paid as per original terms (8.5% and not callable till Oct 2027).

  10. Re: GLOG-A

    GasLog ltd plans to redeem the Series A preferred in March 2022 per press release dated October 12, 2021
    (versus redeemable April 7, 2022 per prospectus dated March 30, 2015.).

    Hamilton, Bermuda, Oct. 12, 2021 (GLOBE NEWSWIRE) — GasLog Ltd. (“GasLog” or “Company”) today announced that it has entered into a Note Purchase Agreement with The Carlyle Group (“Carlyle”) and EIG for an amount of up to $325 million of 7.75% Notes due 2029 (the “Facility”). Carlyle’s Global Credit platform made the investment with capital primarily from its Infrastructure Credit Fund. EIG made the investment through Global Project Fund V and other funds and accounts in EIG’s direct lending platform.

    The Company anticipates drawing down the Facility in March 2022. The proceeds of the Facility will be used to refinance the Company’s 8.875% Senior Notes due in March 2022. Any remaining proceeds may be used to pay transaction costs and expenses incurred in connection with the private placement and/or general corporate purposes.

    1. “ The proceeds of the Facility will be used to refinance the Company’s 8.875% Senior Notes due in March 2022. ”

      GLOG-A is a preferred, not sr. note.

    2. Not sure what you were looking at, but per the IPO filed with SEC (dated 8/7/13) redemption date is 4/7/2020. From the IPO:

      “At any time on or after April 7, 2020, we may redeem, in whole or from time to time in part, the Series A Preference Shares at a redemption price of $25.00 per share plus an amount equal to all accumulated and unpaid dividends thereon to the date of redemption, whether or not declared. Any such redemption would be effected out of any funds available for such purpose.”

      https://www.sec.gov/Archives/edgar/data/1534126/000093041315001588/c80845_424b5.htm

    3. FWIW, GLOG-A has a coupon of 8.75 and they are retiring a Sr Note with a coupon of 8.875.

    4. Yes. Redemption is for a note, not the preferred, with a different coupon, a different call date, and a different cusip. Not even close!
      I jumped the gun in haste.
      Thanks to all for the correction.
      But with the current market coupons for preferred would not be surprised to see a redemption next year when GLOG-A becomes callable.

  11. Have there been any declared and therefore paid dividends on HROWL ?
    I cant seem to find any info on that issue

    1. Schwab paid on 8/4 for 7/31
      Only 86 days, but paid for more than a qtr (?) .6049 pd, vs .5390625

      S.A. shows .60 – rounded

    2. Last quarter the ex-div day was 7/15/21, and received dividend on 8/3/21. So the next ex-div day should be around 10/15/21.

  12. Ergon making another (and more fair offer for BKEP and BKEPP). Looks like a nice little bump Monday and cap gain cash out for me.
    On October 8, 2021, Ergon submitted a non-binding proposal (the “Proposal”) to acquire all of the outstanding Common Units and Series A Preferred
    Units not already owned by Ergon and its affiliates at a cash purchase price of $3.32 per Common Unit and $8.46 per Series A Preferred Unit. The Proposal
    is subject to the terms and conditions as described therein.

        1. Might be true, Mike. A lot of moving parts on the common units, with the K-1 stuff, GP, past issues including selling off a business. But, that isnt my problem. The preferred is a different animal, and in fact considering what shenanigans could be pulled, the preferred offer is very fair considering. Since its trading under offer price, I see no reason to sell mine for time being.

    1. Re: BKEPP
      Thanks for sharing.
      Would a buyout of preferred shares result in any recapture of depreciation on a K-1? Would there be any phantom tax? Or would Ergon assume the depreciated value of the asphalt tanks at the time a buyout was completed?

      Am long.

  13. METLIFE, INC. 4% min Floating Rate Preferred

    We meet again!!! Under par for the first time in a long while. (Traded as high as $26.50 recently)

    1. May I ask what makes it so desirable besides a nice rating? It sounds like it will always be 4%. 1% plus libor will never add up to much.

      1. My conservative bucket or what I refer to as my “annuity” holdings is near empty right now. I trimmed/liquidated everything in this class over the last 12 months to lock in premium to par prices.

        If I can get 400-450 BPS yield on true investment grade A type issuers i.e. JPM or MET or PSA, I am good with that.

    2. 11 years past call, traded at $26.50 in August and now under $25? Perhaps market is anticipating this finally being called?

      1. This is actually quite predictable when yields bottom out and expectation is higher. See the floor provides a ballast at record low yields. But then the Libor plus 1% becomes a ball and chain as yields rise. In current environment it doesnt trade as an adjustable, it trades as a 4% perpetual.
        Libor (or replacement) rising to drag preferred above its 4% floor is so far away it has no present value. And 4% perpetuals are sagging south now. So its falling in tow with that ilk.

  14. For those of you following the on-again, off-again GMLPF saga, this may be of interest. It seems rather sudden, since the last time they scheduled an investor conference call, there was a week or so lag between the announcement and the call, and they posted a deck for review in the announcement. Should be interesting – will be watching for the 8(K) filing early tomorrow morning or later tonight.
    +++++
    New Fortress Energy Inc. Schedules Investor Update Conference Call
    October 6, 2021 at 5:15 PM EDT
    NEW YORK–(BUSINESS WIRE)–Oct. 6, 2021– New Fortress Energy Inc. (NASDAQ: NFE) announced today that management will host an investor update conference call on October 7, 2021 at 9:00am Eastern Time.

    All interested parties are welcome to participate on the live call. The conference call may be accessed by dialing (866) 953-0778 (from within the U.S.) or (630) 652-5853 (from outside of the U.S.) fifteen minutes prior to the scheduled start of the call; please reference “NFE Investor Update Call.”

    A Form 8-K will be posted and a simultaneous webcast of the conference call will be available to the public on a listen-only basis at http://www.newfortressenergy.com. Please allow extra time prior to the call to visit the site and download the necessary software required to listen to the internet broadcast.

    A replay of the conference call will be available after 12:00pm on October 7, 2021 through 12:00pm on October 14, 2021 at (855) 859-2056 (from within the U.S.) or (404) 537-3406 (from outside of the U.S.), Passcode: 8164676.
    +++++

    https://ir.newfortressenergy.com/news-releases/news-release-details/new-fortress-energy-inc-schedules-investor-update-conference-1

      1. X-man:
        Thx. That is why a site like Tim’s here is so valuable. Instead of the SEC watching out for all those ignorant children who can not be allowed to take on responsibilities, we have a thousand eyes sharing info. Now THAT is a society I can work within.

    1. Haven’t looked to see if the date of vote or anything else is changed from that I have here but they entered into merger agreement on July 26… I suppose there’s the potential risk of expert market listing for the new company, who knows……

      7/26 CMO-E Benefit Street Partners Realty Trust and Capstead Mortgage Corporation to Merge … In addition to the above consideration, BSPRT will assume Capstead’s $100 million in unsecured borrowings maturing in 2035 and 2036 and $258 million of issued and outstanding 7.50% Series E cumulative redeemable preferred stock, which will be exchanged for new preferred shares of the combined company with the same terms” … The combined company, to be called “Franklin BSP Realty Trust” post-close, will transition the capital base of Capstead, a residential mortgage REIT, into commercial mortgage loans where BSPRT is focused. BSPRT’s external manager, Benefit Street Partners L.L.C. (“BSP”), a wholly-owned subsidiary of Franklin Resources, Inc. (“Franklin Templeton”), will manage the combined company following the completion of the transaction. Upon closing the transaction, which is expected in the fourth quarter of 2021, the combined company will become the fourth largest commercial mortgage REIT with nearly $2 billion of pro forma equity and its common stock will trade on the NYSE under the new ticker symbol FBRT.
      VOTE TO BE HELD ON 10/15

      1. So are people keeping CMO-E or selling it? I’m keeping it in my non-trading account for now the rate looks good. Thought it would be called until they hinted otherwise.

        1. Martin, I am holding for income. Hey, I’m already up $0.03 on my added shares! The entire complexion will change.
          Looks like collateral will be downgraded on the whole, sounded like packaged and sold off? New entity will not be a CEF so no asset coverage reqirements. Big premiums on CMO portfolio with rates rising. All things of high quality are being privatized and fast. Ever make coffee all week with old grounds?
          I have sent an email requesting clarity of intent. We will see.
          I have ‘good faith’ in FrankTemp. Doesn’t mean they are exempt from all investment elements.
          Best for you! JA

          1. BSPRT will assume CMO’s $258 million of issued and outstanding 7.50% Series E cumulative redeemable preferred stock, which will be exchanged for
            new preferred shares of the combined company with the same terms
            Additional Stock
            Price Support
             $100 million share buyback program instituted post-closing
             $35 million of purchases to be funded by an affiliate of BSP
             Shares to be acquired if the stock price falls below book value per share
             Approx. 94% of BSPRT shares to be locked up for 6 months after the closing of the merger
            Management and
            Governance
             Following closing, BSPRT’s current external manager Benefit Street Partners will continue to serve as manager to the combined company (4)
             At closing, existing CMO independent directors will fill 3 newly created BSPRT board seats
            Estimated Pro
            Forma Ownership
             Approx. 62.7% BSPRT
             Approx. 37.3% CMO

      2. Thanks 2WR… but could you please explain why there is a potential risk of expert market listing for the new company when the press release claims the new common will trade on the NYSE? Wouldn’t that be enough to get at least Pink Current Info status for the post-merger preferred? Is it just that the new OTC rule has been such a hot mess that there are no guarantees, or is there something else I am missing? Thanks!

        1. It’s purely cynical speculation on my part to have said that, but what I was thinking was the press release I quoted came out in July, well before the 15c2-11 began to gain traction and however, in re-reading it, I think my paranoia overcame my reading skills… I read that Benefit Street Partners Realty Trust, Inc. (“BSPRT”), is a publicly-registered, but non-listed real estate investment trust which made me suspect about possibly not being willing to provide the information required under 15c2-11. But it says clearly that the combined company, also going by BSPRT, will become a publicly traded company, not remain private, so that along with their size ought to make the new public version of the combined company willing and able to comply with the new rule.

          1. Thanks again 2WR… I am holding CMO-E so I appreciate the double-check on my reasoning.

  15. For those of you that are a bit less risk adverse (which I know isn’t many here), YCBD-A is trading at 6.50 below where insiders bought some at for 12+ non qualified div on a monthly payer. Not a fan of the common at all but some play money went here.

    1. Whew! Let me see if I’ve got this right, D… a $10 liquidation preference 8% preferred trading at a 35% discount to “par” is for those who are a bit less risk averse? Not to mention an unmentionable but that sounds like an HDO description of less risk averse…. lol I get it that you’re talking about a very short term play which may or may not be less risky, and I know nothing about this one at all, but the basic characteristic sure doesn’t scream sock drawer to me…. What do you know about the company?

    2. Non-qualified div? What makes you think that?
      It would become qualified at about the 4th or 5th dividend.

      1. I don’t think so unless/until they make a profit that it would be qualified since they aren’t profitable nor have retained earnings at this point unless I’m missing something. It’s definitely not a sock drawer one that I would put tons into but similar to dessert a small taste of the beaten down ones can be really sweet. I know it’s not for most on here but some like myself are willing to take some risk for reward. I’m one that has never bought above par unless there were accrued unpaid divs and that may have been one time.

        1. Look at their most recent 10-Q.
          Here is what I look for.
          Stockholder equity is negative. Preferred will be return of capital
          Accumulated deficit.
          Preferred will be a dividend but common will not
          Or if there are both common divs and preferred, the common must be 100% before the preferred changes.

        2. But it’s a distinction without a difference, since for most people ROC is taxed at the same rate as QD… eventually…

    3. Dufus:

      Thanks for the idea. It did force me to look at my Cannabis/CBD stock list for the first time in awhile – I can’t believe how many companies have become penny stocks! Looks like there will be a few surviving winners, but just not sure YCBD will be one of them.

      Seems like there are 100+ companies selling CBD oil now. Remember when TLRY was $300/share? Now it trades for $11. The bubble certainly popped in this sector.

      1. I don’t know much about the Cannabis industry but I do know something about cannabis. What I don’t understand is why cannabis doesn’t trade more like a commodity like wheat or hemp and instead is a high margin business. Seems ripe for disruption as legalization progresses. What happens to the industry if you can just buy it at CVS like anything else?

        1. Landlord:

          What you described is exactly what has happened to the CBD oil industry. CBD oil is mostly derived from hemp, and now you can buy it anywhere – including CVS. It has truly become commoditized.

          When I first stated taking CBD oil for back pain years ago I had to go to a local dispensary and pay top dollar. Now I can get it online at many sites that produce it organically and have massively discounted their prices with coupons, etc. Publicly traded CBD oil firms like CVSI (their brand is PlusCBD) has seen their stock price go from $6/share to 24 cents.

          That is why any investment in YCBD is extremely high risk. Who knows if their cbdMD brand will be a survivor?

    4. A lot of people bought CBD stocks because they thought it was cool to invest in marijuana, not because of any sound investment strategy. Recent results suggest it is a sector to avoid.

      1. Agree it is a sector to avoid. There are a lot of reasons to avoid marijuana stocks but i think the No. 1 reason is marijuana is still not legal on the federal level. That is going to hamper real growth that is needed. Lots of other problems in the industry but that reason alone keeps me away.

        1. the only cannabis stock i own is iipr. a reit that leases property to cannabis growers.
          profitable and pays a dividend

  16. WALA called for 11/15. Should be redeemed for around $25.19.
    I sold a few thousand shares for $25.20 to exit

      1. My broker sent a notice to me. They are replacing it with a 4.25% fixed rate reset. Was nice as it allowed me to get out at same price they are redeeming for and not have to sit and hold it. More cash on sidelines. I think I am 40% cash now which is rare. I have already made 8% for the year, so have made my target. I am hoping for some fire sales. Grabbed some KTBA on the dip, and over the last 4 months have beefed up illiquids.

        1. Thanks Mr. C – hate it when companies don’t make public announcement but comply with regs only…. I, too, have high cash position which is why I watch these call notices…. If I’m holding cash, I’m looking to stick it into these call situations which, though they’re short term nickel stackers only, they provide a good return when compared to the basic money market fund paying zippo. And many times, you can sell at the target proceeds or more significantly in advance of the final call date. I sold RILYI today at 25.65, purchased after call announcement, when proceeds at call 10/22 will be 25.641 as an example.
          The game’s getting less worth playing though. I’m thinking I should pay closer attention to Martin G’s div capture strategy… It’s not as certain as this, but on an annualized basis, you don’t have to even come close to capturing the whole div to do better than this game.

          1. 2WR, I just started playing this call strategy getting a few nickels here and there. Besides this site and Quantum where should I be looking for these type of notices?

            1. That’s a good question, 35…. Can’t say I know of one… and quite honestly, I’m seeing QOL getting slower and slower to discover call notices unless someone like our crowd let’s them know…. If you familiarize yourself with the names of issuers who frequent the preferred stage, if you use a trading platform such as ThinkOrSwim, you can keep a newsfeed running and you can sometimes catch, though serendipitiously, an announcement come out that way… That works occassionally… And I suppose if you experiment with using EDGAR, you might be able set up a search for the most frequently used forms to report them the way EarlyBird and mcg do for new issues…. I think someone else here has mentioned another consolidator site of this type of info, but I don’t know it.

          2. I too have idle cash and followed a link to tipswatch.com where I read about I-bonds. They are due for one of their 6 month rate updates soon and could jump from 3.54% to 6% or so depending on the inflation numbers soo to be released.

            I do not yet have an account at treasury direct but may open one so I can buy some I bonds late in the month after the rate resets. You must hold for a year and lose 3 months interest if you cash out within 5 years but if you time it right, that may be just 2 months and a few days interest.

            0% interest rate but you keep up with inflation with the rate resetting every 6 months. Can’t go down so you have deflation protection (not very necessary at this point). $10,000 limit but it seems like it beats the money markets and is less effort than this sort of nickel stacking. Am I missing something?

            1. I-bonds do look intriguing, especially with what should be a notably higher rate starting on Nov 1. However, the $10,000/person/year limit is quite restrictive, almost to the point of making it not worthwhile.

  17. TGP/PRB continues trading lower and now $25.0x. Is there news out that it is to be delisted after the buy of the issuer TGP by private equity?

    If not called already, is it likely a good buy here at these lows? After all, the 8.5% coupon means few cents of dividends if called in 30 days and chance that it shoots back up to $26/$27 if merger is scuttled (some shareholders are protesting it)

      1. Did see the 10/4 posts regarding TGP buyout and TGP/PRB is LIKELY to continue to be listed. But if so, why is it trading further down to $25.03 lows today?

        If a typical 30-day notice of a call, this is a good buy with its nice 8.5% coupon for a partial Q. Even 15-days of interest would be about $0.09

          1. TGP-A is callable, but until it is called you will earn 9%. So far this quarter it has earned 4.3 cents, so the current trading price at 25.03 is slightly below the current call value. It seems like a good place to park short term excess cash until the call.

      2. Gary:

        It goes without saying that one should be real careful in today’s environment with preferreds that will remain “listed” after the common is acquired by a non-public company/entity.

        That could certainly mean, “See you on the Expert Market” sometime in the future. We are all learning on-the-job about what that is like.

        Good luck.

      3. What isn’t clear to me is what exactly will back the preferreds if things go bad at Stonepeak. Is it TGP assets, Stonepeak assets, or nothing?

    1. J:

      That would explain the non-paying SOHO preferreds going back into free-fall. Some expected the preferred dividends to be made whole on this offering.

      No chance.

      1. The info in the offering didn’t mention any use of proceeds for the arrearage on the preferreds. From the registration:

        USE OF PROCEEDS

        We estimate that the net proceeds from the offering of the notes pursuant to this prospectus, after deducting the underwriting discount and estimated offering costs and expenses payable by us, will be approximately $ (or $ if the underwriters exercise their option to purchase additional notes is exercised in full). We intend to use the net proceeds from this offering to further strengthen our balance sheet, including repaying $20.0 million of outstanding secured indebtedness under our Secured Notes, plus any accrued but unpaid interest and any make-whole amounts or premium then due and payable on such secured debt, which we estimate to be approximately $9.7 million. The Secured Notes mature on December 30, 2023, unless extended pursuant to their terms, and will be payable on or before the maturity date at the rate of 1.47x the principal amount borrowed during the initial 3-year term, with a 1-year extension at the Company’s option. The Secured Notes may be prepaid in part or in full at any time without penalty so long as certain conditions are met. The Secured Notes accrue interest at 6.0% per annum, payable quarterly during the initial 3-year term. If the maturity of the Secured Notes is extended, the Secured Notes will accrue interest at 10% per annum.

        We also intend to use $ of the net proceeds from this offering to fund the deposit of one year of interest payments into a reserve account from which the first four quarterly payments on the notes will be paid and the remaining net proceeds from the offering of the notes, if any, for general corporate purposes.

        Pending the permanent use of the net proceeds of this offering, we may invest the net proceeds in interest-bearing, short-term investment-grade securities, money-market accounts or other investments that are consistent with Sotherly’s intention to elect and qualify to be taxed as a REIT.

  18. GMLPF – Has anyone traded this today? Bid/Ask has been stale since this morning’s open and Last price all over the place within minutes. Just saw $24.10 and now $24.90.

    1. I have traded it today through a Schwab account. I picked some up at $24.00 using a Limit order.

      1. Thanks. Now see trades at $22 handle. I just read chatter this was a SA premium reco. Would make sense why it popped so high yesterday.

        1. Wow, GMLPF has been volatile. Unless it is privileged info, what service recommended it? They must be getting some feedback today.

              1. I got two alerts. One on Saturday that the company that bought GMLP reported their financials and it shot up from $20 to $24 because they felt it would be able to trade. Then I got another alert yesterday saying they thought the SEC might not let it trade as the reason it tanked. I think the speculation about the SEC and the HDO people that rush in at every alert has caused the moves. I don’t own any. Both alerts were pure speculation on HDO’s part in my opinion. I’m not smart enough to buy or sell based on a government action or inaction.

        2. Definitely not seeing consistent prices/order levels. Fidel was showing last 22.78, but bid/ask > 25. Left 2 tiny bids in 23’s and got both at 22.78. But my prior! bid for sl. more at 22.80 was not filled (?!).

          1. The bid/ask has been populating incorrectly on multiple trading platforms and quote service providers since early this morning.

    2. Expert Market seems to be expert at only one thing,….and it’s not helping the little guys.

    3. Put in a GTC sell c 25.5 at Fido just to see if they’d place the order – they did and it’s still sitting there.

    4. TDA will not allow me to buy any stocks listed as Expert Market. I talked to TDA about an exception and was told no. Anyone have a different result with TDA?

      Strange that Schwab (who owns TDA) will allow the purchases, but not TDA.

  19. JPMORGAN CHASE & CO 4.20% JPM-M
    Trading @ Par for the first time since IPO debut.

    I have a PSA and the MetLife floater I am watching and will alert as well hopefully soon.

  20. Wow! HCDIP down to a 13 handle?? Almost 50% down from issue!
    certainly a warning for those of us reaching for yield.

    1. Rvert:

      HCDI’s balance sheet was fine, they had ample cash, and they are in a business where it is impossible right now not to make money. The company must have desperately needed this $35+ million to close a new deal.

      Has anyone ever seen a company issue a $25 par value preferred with a secondary offering at $15? Definitely a first for me.

      Anyway, buying a little more. A good lesson on keeping these smaller companies very small positions!

      1. I don’t know what is going on but paying 13.33% +warrants on pfd does not sound like they are fine and it is a pretty big hurdle to make it accretive to the equity.

      2. Interest expense on their construction loans ranges from the very reasonable 5% to the extortionary 39%. How risky are some of their projects that they have to borrow at 39%? Or is this a related party shenanigan?

        “The Company has various construction loans with private individuals and finance companies. The loans are collateralized by specific construction projects.All loans have a oneyear termbut will be refinanced if the project is not completed within one yearand will be due upon the completion of the project. Interest accrues on the loans and is included with
        the payoff of the loan. Interest ranges from5% to 39%. Interest expense and amortization of debt discount are capitalized when incurred and expensed as cost of goods sold when
        the corresponding property is sold. The loan balances related to third party lenders as of June 30, 2021 and December 31, 2020, were $27,523,700 and $10,092,500, respectively. The
        book value ofcollateralized realestate as ofJune 30, 2021 and December 31, 2020was $85,217,800 and $20,370,300, respectively.”

          1. Justin:

            With what the Fed has done with keeping interest rates at rock bottom levels for years, the entire housing market in the United States is now in a boom/bust cycle.

            Anyone who thinks the massive price declines like we saw in 2008-12 can’t eventually happen again is delusional. All of the “Everything Bubble” asset pricing (stocks, bonds, housing, real estate, art, NFTs, cryptos, etc.) is based on one thing – low interest rates. It is truly a Jenga Tower and we all know what comprises the foundation.

            Going to be very interesting over the next few years to see how this all plays out!

            1. Some more boom than others. Boise and Austin look like they are the Canaries in the coal mine, and there is no telling that the disruption that will occur when FEMA starts repricing flood insurance.

          2. “Don’t let your mouth write a check your butt can’t cash”
            -Dazed & Confused

            I wonder if they entered into contracts to purchase land without having the money to make the purchases. If that’s the case, those contracts could possibly bankrupt them. Hence the need to raise capital at any cost.

            1. LI:

              Possibly. But as of 6/30/21 they had $13 million in cash on the balance sheet (equity market cap is only $33 million) and they just raised $10.4 million in proceeds by selling 144 lots to Lennar last month.

              Very strange. This “Think Equity” investment “bank” also pulled these shenanigans with FATBP. That company issued secondary preferred at $20 back in June – also well below the trading price at that time.

              This small preferred investment is either going to be a home run (grand slam) or a 3-pitch strikeout in my “high risk” bucket!

              1. Yeah, but I count about $55M of recent land purchases (some of which may have closed but the rest would still be under contract and require cash to close). There could be other purchases since the last presentation too.

                However, the best argument against my theory is they got a $158M credit facility on 7/29. So that negates the need to scramble for cash at usury rates.

                1. Who knows how stretched they are buying. I know I own a common stock who sold land to another entity. They are carrying a temporary loan of a bit over 4% interest until they pay off the rest of proceeds next year… Note 4% they are loaning at not 35% lol..
                  Something just doesnt seem right here. But I couldnt help myself and bought a small amount at $13.70 just because I couldnt help myself… Selling an 8% coupon under $14 that was near $24 before all this secondary seems red flag to me. The yield on issuance is bad enough, but redeeming these at $25 while selling them at $14 appears an impossibility. What a beating that would be. I guess a prayer would be ability to force conversion or have owners self convert at some point.

              2. The thing that frosts me is they disrespect prior investors with a slap up side the head by pricing a secondary offering much much lower than the primary issue. Does not create confidence or good will with existing investors.

                1. No it doesn’t Gary. So, it deserves to trade at a discount. Question is how much of a discount.

      1. They did… Both are called for 11/2. FDUSG was announced later than FDUSZ but both for same date… kind of odd but as expected.. Thanks, Ken, for posting the G announcement.

  21. AESC the mandatory convertible of AES Corp is a bit interesting here at $96.41 with a 7.08% yield. This mandatorily converts to common on 2/15/24. By my math if the stock is unchanged by 2/15/24 the stock returns 6.59% and the cvt is 9.37%. If stock is down 25%, stock total return is -18.41%, and convert is down -13.52%. If the stock is up 25%, stock total return is 31.59% and convert is up 21.55%. If you like AES common but want some more yield with some downside protection this might make sense.

    1. According to QOL:
      The stock purchase settlement rate will be 3.8640 shares per unit if the market price (AES) is equal to or less than $25.88.

      At the moment AES is $23.13 so you get 3.864×23.13 = $89.37 worth of AES at the current price for $97 (current price AESC) at the conversion time — or a loss of about 7.9%?

      I think…

      1. That’s correct, but you have to add in the $17.1875 in dividends remaining which gets you to a total positive return of about 9%.

  22. GMLPF is back to Expert Market dark this morning on the OTC markets site this morning, hopefully a mistake.

      1. Somebody just bought the last of mine at TDA on my blind offer. Glad to be rid of it, though I had a 7+% gain on 500 shares I bought last week, so I shouldn’t complain. It’s just that I’m too old now for these kinds of shenanigans. Expert market. Geez, gimme a break.

        JMO

  23. Starting a new thread for the WTREP dividend. So the summary from below is that folks have seen it posted at Schwab, TDA, and Merrill.

    I can add that I have *not* seen it post yet to E*TRADE. Anyone else?

    1. I also have not received it yet at ETrade.
      On a related note, my LTSK and LTSF coupons were credited this morning.

    2. New to this site. At Schwab the value of my WTREP shares are listed at $0. Do you know if that is the same at other brokerages?
      Is anyone doing anything about it? Has there been any trading since delisted? Thank you!

      1. Shareholder287: yes, other brokers are showing it at zero value and listing it by CUSIP rather than ticker.

      2. 287, This is done because it has “stale pricing” (no recent trades) in addition to fact there are no bid or ask pricing with issue. Its showing a value of zero because of that, but this does not mean its worth zero. It just cant be traded in street name now.
        If you dont believe me that its not worthless, request and convert your shares into certificate form. And then schedule a place for me to meet you and I will gladly buy 2000 shares for $14.5 from you and pay cold hard cash for them! 🙂

        1. Grid – You’re a true humanitarian fit to qualify for participation in the expert market for sure…. ha

      3. 2WR, I would gladly become one if they would invite me! Shareholder 287, just to backfill. There is no such thing as WTREP. It doesnt exist anymore. No entity has assigned it a new trading ticker for OTC. This is why its zero as its untradeable. But there really is no reason for a new ticker to be assigned as it would go immediately to “expert market” anyways being its a private company now.

      4. I hold it at Merrill and they show a value of $25.05 per share, and before anyone asks, I did receive the recent dividend.

        1. Brokerages have various policies and procedures on issues not trading. That $25.05 was just the last trade it had before it was delisted. At this point its really irrelevant as its only worth what it can be sold at. And presently it cant be sold. Its basically a private placed preferred with no market now.
          Ironically that is what traditionally is where the vast amount of preferreds are issued as anyways. We just arent aware of them because we are not offered them.

    3. Bur, received my WTREP divs at E*Trade this morning. $0.48385 per share.
      By the way, still no foreign withholding entries on my BPYPM divs.

    4. Bur, received my WTREP divs this morn at E*Trade. $0.48385 per share.
      By the way, still no foreign withholding on my BPYPM div.

      1. There may not be withholding on it. Only some payments qualify, and to a certain extent, if they paid it net to a US person, it wouldn’t make any difference, as it should be reported on the K-1.

      2. Showed up for me at E*TRADE as well, at $0.48385, which exactly matches what I had expected.* Woo hoo.

        [*https://www.sec.gov/Archives/edgar/data/1601669/000162828019003516/watford424b3.htm says “Dividends accrue … at a floating rate per annum … equal to three-month U.S. dollar LIBOR plus 667.85 basis points; provided, that, if, at any time, the three-month U.S. dollar LIBOR shall be less than 1%, then the three-month U.S. dollar LIBOR for purposes of calculating the Floating Rate at the time of such calculation shall be 1%…. During the Floating Rate Period, dividends payable on the preference shares are computed on the basis of actual days elapsed over a year consisting of 365 days.”]

  24. PS Business Parks (NYSE:PSB) is redeeming all outstanding depositary shares representing interests in its 5.20% Cumulative Preferred Stock, Series W, on Nov. 3, at $25 per share plus accrued dividends from October 1, 2021, through the date of redemption.

  25. HCDIP continues to get smashed. Given that’s it dropped $5 since they announced the new offering, I wonder if they’ll call it off.

    1. Thanks for posting this. I was tempted to mention the same. How can you even sell more preferred when it is below 20 today? It is a worse situation then FATBP was.

      I am tempted to buy some but I cannot tell how desperate HCDI is for money. Some hot land deal is probably causing all of this?

      1. Im waiting for $18 I guess. I been following this guy who said get out and wait for lower so I sold today at 19.50 after buying at 19 a few days ago. We shall see I guess.

        1. Hmmm… well, Grid, your guy may have had insider info that was helpful, but doesn’t seem to have very good advice right now. A few hours ago, he was saying to sell at $17.

          Then he said, “prepare for a big drop tomorrow. buy as much as you can tomorrow or after. we may see $17, $16. as HCDI at 2.4, the convertible part of HCDIP=$14. plus 42 divvy paid monthly.”

          While all technically accurate, Mr. Market is probably not going to let the preferred price get that close to the conversion value.

          Just a few minutes ago, he said not to sell anymore until it hits $22. So he’s all over the place.

          So while he made a correct call early on (maybe illegal, but who’s paying attention, right?), I think you’re on your own now.

          https://seekingalpha.com/article/4411213-harbor-custom-development-value-play-in-overheated-market

          1. Well, now he’s saying it priced at $15 for HCDIP + 5 warrants. If true, both the common and preferred should get whacked hard. Unless they have some insanely profitable projects on the horizon, this is a terrible financing move. Time will tell.

            1. I just read his posts. Correct me if I am wrong but the preferred also originally had warrants. Yes. It does seem like this is the case. They are HCDIW. Last trade was .45 cents. Near a 52 week low. Most current owners of HCDIP obviously did not get the warrants as they bought after.

              “Gig Harbor, Washington, June 09, 2021 (GLOBE NEWSWIRE) — Harbor Custom Development, Inc. (Nasdaq: HCDI) ( “Harbor,” “Harbor Custom Homes®,” or the “Company”), an innovative and market leading real estate company involved in all aspects of the land development cycle, today announced the pricing of its underwritten public offering (the “Offering”) of 1,200,000 shares of 8.0% Series A Cumulative Convertible Preferred Stock. Each share of 8.0% Series A Cumulative Convertible Preferred Stock will be accompanied by three warrants (“Warrants”), each Warrant to purchase one share of Common Stock. Each share of Series A Cumulative Convertible Preferred Stock and accompanying three Warrants is being offered at a price of $25.00.”

              So.. warrants as we all know often expire worthless. They will probably be valid for 5 years. I do not buy HCDIP as an offering so I won’t even get them. That seems to be the case for little guys like me.

              I like HCDIP at 15. Even 16. But I go into it not even giving the warrants a second thought. Even the conversion seems like pie in the sky on HCDIP as well. So as long as they keep making a tiny bit each quarter it could be an excellent buy. If they start losing money I would dump.

              But my main problem is why in the hell would they sell more preferred at 15? That alone raises questions about their sanity.

              1. Yeah, there are two likely possibilities here. They have extraordinary investment opportunities or the execs are more interested in empire building at any cost. I guess I have to wonder how they found such great opportunities that someone with a much lower cost of capital missed. Empire building, on the other hand, is much easier to understand and quite common.

            2. Karma, ultimately, I have been on my own from the beginning since its my money. But ultimately he has been saying its going to recover and the secondary seems to be going off lower too. He always has said holding would work out. But I dont buy to ride something down and hang on for upswing.
              So here is where the problem is for me, as I was basing this one off chart movement from FATBP. And that company was a “going concern” a year ago.
              I thought I got lucky on a quick swoop to $19 as it was at $20 before I even noticed then up to $20.50. But it didnt hold and then the secondary has been delayed for some reason.
              But Im with FC, now, if this thing goes off near $15, I dunno. Makes one wonder what is really going on. Getting close to 13% range as capital. That seems past desperate to me if thats true. That gives me serious pause. I was assuming a $20 range, (not counting warrants). I was assuming a FATBP redux as HCDIP was around $24 like FATBP when the secondary rumblings began. But it doesnt appear its going to hold, so at best this will never be more than a minor lotto ticket at best.

              1. Grid, well I already have 50% of my portfolio in it and was thinking of going as high as 75%.

                J.k.! You know anything with an 8% coupon these days should get a wary eye. This one just required more wariness than I would have assumed. Only risk what you can lose, but be willing to buy when the firesale arrives.

                1. With this issue, I dont know about where constitutes a fire sale, some fire sales eventually go to zero, so there is that risk. Here we got a common market cap of $35 million and now they are looking at preferreds at almost double that if they get this secondary off the ground. With a blend of probably 10% plus? The common has been acting horribly too..
                  I cant remember buying any preferred at $15. I did catch a bunch of SR-A at $16.30 in 2020 March rout, but that was a 100% layup. Heck I even waited for CEQP- to climb back to $7.50 before buying a lot. So the more I talk myself through this, the more I worry.
                  8% is a flag for sure, but there are better ones than others of that ilk. The Safe Bulker preferreds need to be minded, but company is doing great. And say CEQP- and BKEPP are also ones with solid coverage ratios. But their issuance price was dictated in another era for other reasons.

                  1. Karma, That dude, whoever he is was right…Look what just came out.. $15…OMG.
                    Harbor Custom Development, Inc. (Nasdaq: HCDI, HCDIP, HCDIW, HCDIZ) (“Harbor,” “Harbor Custom Homes(R),” or the “Company”), an innovative and market leading real estate company involved in all aspects of the land development cycle, today announced the pricing of its underwritten public offering (the “Offering”) of 2,400,000 shares of 8.0% Series A Cumulative Convertible Preferred Stock (the “Series A Preferred Stock”) and 12,000,000 warrants to each purchase one share of common stock (“Warrants”). Each share of Series A Preferred Stock will be accompanied by five Warrants. Each share of Series A Preferred Stock and accompanying five Warrants is being offered at a price of $15.00. The shares of Series A Preferred Stock and Warrants will be issued separately but can only be purchased together in this Offering. Harbor Custom Development, Inc. has granted the underwriters a 45-day option to purchase up to 360,000 additional shares of Series A Preferred Stock and/or 1,800,000 additional Warrants solely to cover over-allotments, if any.

                    1. Ah, but they did scale it way back, or more appropriately, were forced to. They were shooting for $70 million and got $12.386 million. Which is good from the perspective that there will be less supply hitting the market, but bad because there is really not much demand from big money investors for this company’s securities at heavily discounted prices. It kind of seems like the investment banker might be most at fault by wildly overestimating how much the market would bear. Risky assets have been dropping, which probably didn’t help.

                      I suspect they will become a serial re-issuer going forward and won’t try to bite off more than they can chew each round. But every time the price creeps back up, they’ll hit up another secondary offering.

                    2. Karma, scale back? Are we looking at it the same way? I dont think we learned math the same way. I dont see that, hell they are trying to sell twice as many preferreds on this offering as they did on the first go around. Remember these $15 issuances of 2.4 million plus preferred shares are still drudging around a $2 preferred payment around their neck just like the higher priced initial IPO paid.
                      Where are you getting $12 million? What am I missing? The 2.4 million preferreds pencils out to $34 million to me. I dont know anything about them ever wanting $70 million, but I never looked for that.

                    3. Karma, ok, I see what your reading from S-1. But that was the last one and it appears this is adding on from previous Oct. 4?
                      (7) The Registrant previously registered securities having a proposed maximum aggregate offering price of $70,000,000 on its Registration Statement on Form S-1 (File No. 333-259465), which was declared effective by the Securities and Exchange Commission on October 4, 2021. In accordance with Rule 462(b) under the Securities Act, an additional number of securities having a proposed maximum offering price of $12,386,000 is hereby registered, which includes securities issuable upon the exercise of the underwriters over-allotment option.

                      The press release came after latest S-1. So by last sentence it appears to me they are upsizing offering to try to make up for pitiful pricing. I cant imagine the presser which came out late last night and after the filings to be incorrect.

                    4. This thread is worth a topic as far as I’m concerned.
                      I just bought ATH @ 15. Currently at 14

                    5. I am sitting here hesitant to buy. Something is not right. What they are doing is not rational. This must be the only way for them to raise money quickly. They will end up not paying out.

                      Have to pass. Alarm bells are ringing here and I like taking some risk. But not jumping off a cliff. No common divie. This company can suspend preferred and no one will say anything. They can barely cover all of this.

    1. showed up in my schwab accounts 9/30 after market close. Symbol showed as a seemingly random number (different from the random number symbol in my “holdings” page), but description says watford.

      Always nice to get a big fat divi from a stock that has zero value (according to schwab)

      1. Mine hit at TDA today too. I only have 300 shares so dividend should be $159. TDA only showed $145, with no explanation. I’m assuming this should be a full quarter’s dividend. Were the amounts correct for those who received it? And yes…it is nice to get a dividend from a stock with zero value.😉

        Ooops… just checked again, it’s floating now, not a fixed dividend so it is correct.

    1. mbg

      Like you I’ve been adding to my position on the way down.
      I wonder if folks are expecting it to be called?

  26. Schwab’s web site indicates that GLADL is being called 11/1/21. Anyone else have other confirmation?

    1. GLADL called for 11/1 – full coupon amount of 25.335975 EXACT which should also mean an ex-div date of 10/14

  27. TGP is being taken private. Not sure of the impact on the 2 FTF preferreds but both are down this morning by around 5%.
    Any insight into the impact on the preferreds?

    1. I made a mistake. The A is perpetual but callable tomorrow. The B is FTF and not callable until 2027 but I wonder if it will still remain publicly traded.

      1. i am hearing it will stay listed but not a done deal. i bought the b on the pullback this morning

        1. Bob or anyone,
          In regard to TGP-B, I get that Stonepeak being PRIVATE is a negative since there will be less reporting and no common dividend to “protect” the Preferred distribution but I don’t understand these comments about it may not remain listed. How would that work ? Does this mean it will only trade OTC or something else ? Really appreciate any / all feedback. I have a large position in the B and am not familiar with the mechanics of owning a Preferred that has been taken private.
          Thanks
          Gary

          1. Gary, If they keep preferreds listed on NYSE they will submitted financials of company quarterly via the preferred. I own TECTP which is a private company but the preferred is on an exchange. So the quarterly financials are available through SEC via the preferred.
            So it can be done. But if they delist it will be headed straight for the expert market. AmTrust (Notrust) said they would not delist preferreds and did it anyways a few weeks after going private. So what they say and what they eventually do can be different.

      2. A news release can be found by going to TGP in SeekingAlpha, opening it’s news story, and then clicking “agrees to acquire” in the second line to open a link. According to it, TGP will be delisted but the two preferreds will continue to be listed on the NYSE. I hope that’s right. My TGP-B has dropped like rock, which makes me very nervous. Neither TGP nor the preferreds can be bought now that the deal is pending, only sold, at least on Schwab and Fidelity. How long will that last?? The deal requires a vote but is likely. Does anyone have more info on this, please??

        1. wilson-
          I bought just now at Schwab – looks fine.
          Only sold? Someone has to buy for a sale, right?

        2. Wilson,
          I have been buying TGP-B all day on Schwab, both web site and Edge.
          Call their trading desk if you continue to have problems.
          Good luck..
          Gary

    2. “Promptly after the completion of the Transaction, the common units of Teekay LNG will be delisted from the New York Stock Exchange. The Series A and B preferred units of Teekay LNG are expected to remain outstanding and continue to trade on the New York Stock Exchange following the completion of the Transaction”

      IMHO TGP-B is a huge buy here

        1. I called my broker 7 months ago and he said it had been converted to a C Corporation preferred from an LP.

      1. i sold my TGP to buy TGP-B today. if the B recovers some of todays drop quickly ill take the money and run

          1. At Fidelity it’s the floating rate issue. Have to call in.

            They’ll accept orders on TGP-A

      2. Bought some today at $25.21. Don’t like catching a falling knife, but oh well…. Hopefully the call protection is still in place after the takeover is completed. It appears it should be non callable until 2027.

    1. I would think this would be a positive for the Preferreds but the B are down 5%
      Thoughts ?

      1. If ylu really believe they are going to keep the preferreds TGP-A offers a higher yield. No loss if called.

  28. New Issue
    Priority Income Fund, Inc
    Perpetual Preferred
    PRIF.K
    $25 million
    Egan Jones: BBB-
    7.000% to 7.250%
    Use of Proceeds:
    The company expects to use the proceeds for redeeming the Series E Term Preferred Stock due 2024 and general corporate purposes including new investments and redeeming existing indebtedness

    1. Call a 6% (with 3 years to go) and issue a 7% and spend a lot in management incentive fees. They still must maintain 200% asset coverage, as I thought maybe that language was changed. I stopped last year in investment in this investment company after it seems they are continually issuing them.

      • The potential for our Adviser to earn incentive fees under the Investment Advisory Agreement may create an incentive for it to enter into investments that are riskier or more speculative than would otherwise be in our best interests, and, since the base management fee is based on average total assets, our Adviser may have an incentive to increase portfolio leverage in order to earn higher base management fees.
      • Our Adviser and its affiliates face conflicts of interest as a result of compensation arrangements, time constraints and competition for investments, which they will attempt to resolve in a fair and equitable manner, but which may result in actions that are not in our stockholders’ best interests.

  29. Has anyone owning WTREP seen their 9/30 dividend yet? The 3/31 and 6/30 dividends posted to my Schwab account on those dates but I have not yet seen the 9/30 dividend posted. I’m wondering if it is just me or a WTREP issue.

    I know that WTREP was delisted… my Schwab accounts shows the value at $0.
    When it was delisted Schwab moved it from Equities on my Dashboard with WTREP as the ticker to Fixed Income with a CUSIP of G94787119.

    1. PB, I own it in 2 separate brokerages and have received nothing. This was totally expected by me. The money moves by codes to at least 3 locations before one gets the divi. Compound the problem of delisting and the fact we dont even own the securities (Cede and Co) owns all securities and it has to flow through DTC before brokerage gets it. Wouldnt surprise me if some coding error happens between start to end that will need addressed. Its way to early for me to worry. I have had to wait 2-3 weeks before on certain oddball issues, so its in the 1st inning here for me.

  30. I am new to investing in stocks and have been following the various threads at innovative income investor closely for about a year. I have found the website of great value. Up until interest rates tanked I let a brokerage firm buy CDs for me, I took the interest, and gave little thought to investing. Not so now. I have purchased preferreds over the last year and am wondering about buying some big Canadian bank preferreds. I notice that most of the ones I am finding trade OTC Pink. Any I buy I plan to hold for a long period of time. Has anyone had any experience with Canadian bank preferreds? Are there any pitfalls I should be on the look out for.

  31. MONMOUTH REAL ESTATE DECLARES
    COMMON AND PREFERRED DIVIDENDS
    HOLMDEL, NJ, October 1, 2021……On October 1, 2021, the Board of Directors of
    Monmouth Real Estate Investment Corporation (NYSE:MNR) declared its quarterly cash dividend
    on the Company’s Common Stock of $0.18 per share payable December 15, 2021, to shareholders
    of record at the close of business on November 15, 2021. The Company’s annual dividend rate on
    its Common Stock is $0.72 per share.
    Also on October 1, 2021, the Board of Directors declared a dividend for the period
    September 1, 2021 through November 30, 2021, of $0.3828125 per share on the Company’s
    6.125% Series C Cumulative Redeemable Preferred Stock payable December 15, 2021 to
    shareholders of record as of the close of business on November 15, 2021. Series C preferred share
    dividends are cumulative and payable quarterly at an annual rate of $1.53125.

    1. Management talked a big talk about redeeming these when callable. Looks like they’re live at least a little longer. Between the merger and call date, a lot of people got scared out of these including myself.

  32. Note that AGRIP, Agribank, a GSE ( Govt Sponsored Enterprise ) , and a major part of the U.S. farm credit system ,cannot be traded, at least at TDA. It has ‘only’ $100+ billion assets but obviously does not report their financials to the SEC, as it is OTC ‘dark’. I am glad that the SEC is protecting the small people. BUT, I would bet that institutions can still trade the product. I tried to trade today w/o realizing the this type of product was not tradable. Astounding how messed up the gov’t is. Perhaps others here have a different opinion. Thanks

    1. Howard,
      When AgriBank issued their preferred, the regulator (Farm Credit Admin) required that only institutional investors could purchase the preferred. The FCA was worried about potential negative press that could result if small investor (mom and pop) purchased security without fully understanding the risks, primarily call risk but also the possibility that the price could drop below liquidation value. They punted to avoid addressing the issue. Yes the Government is messed up but its not necessarily the SEC on this issue.

      JDC

    1. Tim, please delete and block the posters that insist on making inappropriate political comments. thank you..

      1. C’mon, people, it’s enough with the name calling and denigrating comments. We’re the USA, greatest, most free and open, and most prosperous nation in the history of the world. Let’s treat each other with the common courtesy and generosity of spirit we each deserve, and which III exemplifies. C’mon, it’s not that hard to be nice.

    2. We all have our opinions but some have better impulse control and cannot let help themselves. I would suggest Tim implement a three strike program: one warning that the post is not investment related, second step a one week ban and third step permanent ban.

      I will consider myself warned with a strike one. Please do not respond to this post BUT do please just let dissenting opinions pass. I only care what your investing thoughts are and could care less about your arguments about politics.

      1. Fully agree. I/we have no interest in reading these political comments and this great site would be greatly improved by permanently removing about 5 posters. Please move off this site, you are not wanted. Again thank you Tim for all you do.

      1. Amen. I hope Tim will ban Chuck P and some of the others who are repeatedly and self-consciously violating the no-politics rule.

        1. I get enough of the divisive politics at home and office.
          However, I don’t think these posting offense warrants banning.

          1. Tim does this site for no fees and does not have advertising income that I can see. He has stated no political talk. It is his site and his rule, (which I/many concur). If these posters can not respect Tim and his rule, than this site is not for them and go elsewhere.

            1. Abby–sorry I was slow to the punch on this one. I have removed some of the posts and Chuck P has promised he won’t toss out more political grenades–which needs to be the case–there are limits even to my very laid back patience.

  33. INBKL – Still trading…. this is weird……….. TDA allowed me to place an order as a test…

  34. BPYPP and BPYPO

    Any other U.S. owner having foreign withholding withheld on BPYPP and BPYPO for the last two quarters June 2021 and Sept 2021?

    I received dividend payments end of June 2021 on both of these preferreds and both payments were classified as dividend payments and got foreign withholdings held out.

    I received dividend payments end of Sept 2021 on both of these preferreds and both payments were classified as partnership distributions and got foreign withholdings taken out.

    I have owned both of these preferreds since the initial offering and they have always been paid as a partnership distribution and receive a K1 form and never had any foreign withholding held out.

    I contacted Brookfield IR first part of July and I was told they made a mistake and miscategorized the June payment as a dividend and it should have been a partnership distribution and that as US owner I should not have had foreign withholdings withheld.

    I looked this morning and the September payments are a partnership distribution but I got foreign taxes withheld again.

    I am not sure if this is a Wells Fargo issue or others are experience this also?

    1. E*TRADE has withheld foreign tax from BPYPN dividends. Really screwy set of transactions:
      – dividend credited on 30 jun
      – more dividend credited on 02 jul
      – foreign tax withheld on 02 jul
      – entire dividend amount debited on 27 jul
      – dividend then re-credited on 28 jul, with foreign tax withheld again

      This was the first dividend I’d seen from BPYPN (I established the position in May), so I just assumed it somehow was subject to withholding…

      1. Bur, I haven’t held BPYPN, but I got BPYPMs initial dividend credited in 2 installments on 9/30:
        1. Cash dividend (almost all).
        2. Interest (a tiny bit).
        I think this 1st div was a “short” div (less than the full quarterly amount), and I think it was the correct amount.

        Given your multiple transactions, I’ll be on the lookout for any further transactions this coming Monday that mirror yours with BPYPN.
        I’ll let you know what happens.

        1. Mr. C – Your link only shows another intention to call for FDUSG, right? You’ll notice there’s a specific N-23c-2 form filed for FDUSZ with no mention of FDUSG. I suspect that FDUSG IS also called or will be, but why the different way of handling them?

          1. This was in the 497AD form that was released today. “Redeem all outstanding 6% Notes due 2024 and 5.375% Notes due 2024, general corporate purposes.” So I would simply bank on both of them being called. I don’t think this is an opportunity to exploit a purchase in FDUSG.

            1. Mr. C – I agree it’s probably not an opportunity on FDUSG but the 497AD issued today doesn’t say anything different than their originals but they did issue the N-23c-2 on Z that didn’t mention G. Seems odd but maybe another N-23c-2 is coming as well.

  35. the proposed congressional spending plan would include a provision to mandate small employers (6 or more) to set up an employer sponsored retirement plan. Truly, beyond the pale. Just ridiculous.

    1. Heron250; I’ve got several that can top that one by a MILE but Tim doesn’t like it when we get political. It hurts the feelings of some folks that can’t handle the truth. LOL

      1. there is nothing more important than a peaceful transition of power.
        please don’t make up #’s after saying you value the truth.

        sorry Tim. I won’t do it again 🙂

        1. You just like Denard cannot see the forest for the trees. What this clown in the WH is allowing at the border is beyond criminal behavior. Sorry, you cannot see or understand what is happening to the country.

          1. A4I; Rather than debate if he is popular or not the much bigger problem is his totally open borders policy. They don’t even know that NOW there are over 85,000 more illegals in PANAMA heading this way. This clown in the WH is going to destroy America as we know it by NOV. OF 2024. I find it extremely DISGUSTING. Its not important to me if the number is 31, or 40% or whatever—its what he is doing to the country. Some of these folks on this site are just blind to the actual TRUTH.

      2. Yeah – this is garbage trying to be imposed on every small business owner by one party.

        And there are lots of other, even worse garbage in tis boondoggle one side wants to pass. Like allowing the IRS to have access to every person’s bank transactions over $600. Talk about big brother intrusive

        I could go on but will stop there

    2. First it was mandates for employer healthcare plans, now retirements plans. What’s next? $15 wages and paid sick leave?

      1. Destroy small business by turning them into charities. Low wage workers conned into supporting their own demise.

    3. Honestly, what is the problem with this? I set up a solo 401(k), it was no big deal. If I had employees I’d just find a turnkey plan. I’m sure the brokerages will be falling over themselves to offer them if this passes.

      1. David – totally agree, in fact everyone here should be happy if that happens. The more people investing is a good thing for the market and it will certainly be a postitive in the future for those who don’t save anything for retirement and expect the government to support them. Just my take, not saying either side is right or wrong.

      2. Maverick: Thought you would like this: “what is most troubling is for this proposal to be Tucked away into the Reconciliation bill, camouflaged as a tax because, the fine that employers will pay, $10 per employee per day for failing to comply with the requirements, is labelled a tax”, so that the law fits within the requirements for a Reconciliation bill” (from Forbes)

      3. And where might one find a low cost, turnkey plan? While Solo 401(k)’s are relatively simple, brokerages have zero interest in small non-Solo 401(k)’s because there are a lot of administration costs.

        The apolitical reality is that it was due to unintended consequences that our retirement and healthcare systems are so heavily tied into our employers. While there are some advantages to that, there are way more costs than necessary. People with large employers receive workplace benefits that are often too expensive for a small employer to administer. It’s way too late to undo all this (the mutual fund and insurance lobbies will make sure of that), but I support leveling the playing field for everyone. Logically, it would seem better to just expand the contribution limits to be a combination of IRAs and employer plans so that it doesn’t matter whether your employer offers an employer plan. The problem is that many people won’t save if it’s not automated. And then you end up with a lot of old, poor people. If anyone thinks there is a simple right or wrong political answer to all this, you probably haven’t thought through all the impacts.

        1. Karma,
          Thanks for a very knowledgeable and fair-minded post.
          cws (worked on retirement tax policy)

        2. Karma, amen to your post. I was discussing this issue with a friend and came up with the same question: why bother to saddle small businesspeople with the admin costs when you can just increase the IRA limit to match the 401k limit?

          I guess one obvious answer is that by increasing the IRA limit we would cause a short-term reduction in tax revenues which would have to be dealt with somehow.

      4. So here’s a little fact check folks. I am a single member LLC, – owner operator with occasional part time help. I set up a SEP plan for myself. If I have someone that works for me for 3 out of 5 years, by rules of the SEP, I HAVE to contribute an equal portion to that employee. If I am doing the max at 20% of my net income, then I have to do 20% of my employee’s net income. I believe the other plans for self employed individuals have similar provisions. This is not 5 employees, or 6 employees. It is 1 (and every) employee. So this basically already exists for employers who have chosen to contribute to their own retirement.

        I am not sure it needs to be mandated, but I really don’t see a downside to contributing to an employee’s retirement. They are adding value to your company and therefore the company should add value back. Simple math. Stop trying to hoard everything for yourself. (that is a general statement – not a direct comment to anyone on here). Our country has a terrible track record for how our working class are treated – cut hours to less than full time to deny benefits, low wages, limited flexibility, no paid sick leave / paid time off, … As long as upper management and shareholders are happy, the rest be damned.

        The irony is, in my opinion, that if you treat your employees well and show them that they are valuable and appreciated, productivity and profitability will most like go up. Better retention. Reduced training costs. Better morale. Ultimately, healthier and happier employees – better for everyone.

        Well, just my $.02

        1. You give a good argument for why companies voluntarily offer benefits. Mandate is a different animal with different consequences, especially for struggling small businesses.
          I worked for a small company in the 90’s that offered a 401k with no matching funds. Most employees didn’t contribute. I did. left with $14,000 and it’s worth many times that amount today. My friend cashed out his fund and it’s gone. You can’t mandate personal responsibilty.

    4. think it may be 5 or more employees, rather than 6. You have to question
      if these politicians have any idea what a very small business is.

  36. Tim,

    Someone else mentioned this but ROLLP is available to buy. It is not on the new issues list. A convertible preferred that came out. A 100 par issue trading around 111 right now. I am bringing it up because it sure did not get much attention around here and I wonder why it was bought so strongly right out of the gate. That 5% yield is sort of a sweet spot in a way right now.

    1. At this point it’s really irrelevant in that you can only sell and not buy.If you bought at a much higher price you’ve committed yourself to holding.

      1. I agree. We can’t buy them, so what’s the point in even watching the prices? If someone wasn’t aware that the liquidity was going to disappear and actually needs to raise cash, that’s rough. But we discussed it on here for months that if you want to hold onto these you better be willing to hold on forever. Which is why I only bought self-liquidating positions (aka bonds with a maturity date).

        1. Karma – I believe there is a small exception – if you hold these in an IRA, the taxes due when converting them to a Roth IRA depends on the value at the time of conversion – as determined by the price of the last trade.

          1. Llabs, that’s a fair point. I do have some LTSL in an IRA, but I would want the price pretty low before I’d want to pay taxes on a conversion. Considering that the company could go bankrupt, there’s a chance you could convert only to see losses in your Roth IRA.

            But I still think posting these prices as an alert isn’t very useful since they aren’t very actionable.

            1. I am not 100% sure they are not actionable yet. I have not had time to call in yet and dig. Just because brokers do not show bid/ask does not mean there is no way to buy. The person who figures that out because they are motivated by these low prices will be very helpful to all of us. It is still early yet. If we cannot buy 60 days from now I would tend to agree with you but I would still be curious what I am missing out on because I do not follow everything.

      2. Eddie, obviously somebody somewhere is able to buy these, some III’ers might have access to do that. And as Llabs mentioned, converting a single position like this from a regular IRA to a ROTH IRA might be a good idea.

    2. Would be interesting to understand who can execute “buys.”
      If the common brokers can only sell, who is allowed to buy?
      I am not interested in anything Laddenburg and never have been… but might be interested in other issues.

      1. Thanks Ken–bye bye to another–saw this coming with other PR banks calling issues – ouch to holders

    1. Thanks Fred—I thought this would happen–the PR banks are fairly solid now and no need to pay these huge coupons.

  37. GECCM at par today. Not exactly the poster child for credit quality, but it’s short dated paper with a decent coupon.

  38. For the high risk people, IMBIL started trading today. It’s currently trading at $24.40 and you can get filled at TDA.

    1. My order just filled for IMBIL at $24.25. Ouch, I pit another bid in the $23’s to see if I get a bite.

  39. Farmland Partners Announces Conversion of 6.00% Series B Participating Preferred Stock

    In connection with the conversion, on October 4, 2021, each share of Series B Preferred Stock will be cancelled and represent solely the right to receive 2.0871798 shares of the Company’s Common Stock, $0.01 par value per share. Pursuant to the Articles Supplementary governing the terms of the Series B Preferred Stock, no fractional shares of Common Stock will be issued upon conversion of the Series B Preferred Stock and holders of the Series B Preferred Stock will instead receive cash in lieu of fractional shares to which they otherwise would be entitled upon conversion. The shares of Series B Preferred Stock are expected to be de-listed from, and the shares of Common Stock issuable upon conversion are expected to be listed on, the New York Stock Exchange as of market close on October 4, 2021.

    https://www.sec.gov/ix?doc=/Archives/edgar/data/1591670/000110465921120391/tm2128536d1_8k.htm

    https://www.sec.gov/Archives/edgar/data/1591670/000110465921120391/tm2128536d1_ex99-1.htm

    1. Thanks, J – This should be interesting…. I suspect, despite FPI-B trading at a discount to the conversion price, that it might go down in price as those who don’t want to convert sell. It might also happen that FPI itself will go down because of the conversion… My only similar experience was holding AMH preferreds thru conversion and that was the pattern – holding thru a temp downturn ended up being the best way to go even if I wasn’t particularly interested in holding the common longterm.

      1. I remember also JE-A offered something similar to this at the end of its “life” … Oct. 4 ain’t so long from now

      2. It’s been quite a violent reaction to this conversion today, hasn’t it…. yikes! My simple mind decided just to ignore it and hold thru conversion even though the more active types would have put on what was probably an easy arb by shorting FPI one way or another in anticipation of the selling to be expected from B holders not wanting common… From the common’s point of view this should have a similar effect I would hope of the company issuing new shares in a secondary increasting the total by 35%…. I suppose you could expect up to an 8% discount to the prevailing price in order to get that done, so hopefully, that type of price will end up being a floor… Trouble is, we B holders don’t get that discounted price…. yuck short term, hopefully just short term.. what are others doing who own B?

        1. 2WR, So I decided to double down (well, not exactly double my position) but bought a handful of shares on the way down, with another buy order in for a few more if it gets down to $24.75. If it continues to drop below that, I may even purchase a few more… I’ll definitely leave a standing low ball bid open till conversion. I think the long term prospects for farmland are probably pretty good. Short term, this doesn’t look great with the common shares dropping today as well. With my additional purchases today, I am definitely overweight in this position. I’ll probably unload some of the common shares after conversion assuming the price recovers to somewhere in the 12.75 range. If not, I guess I will collect the meager common divvy for the time being. Might be a good candidate for a ROTH conversion; although I have never done that yet and not exactly sure how to do it yet.

          1. I’m at a loss as to what the best way was to play this or how to play it in the future… I took the slothy way of doing nothing and waiting to figure out what happens after all the smoke, aka noise, settles…. I’m not quite sure what someone is buying if they buy B today thru Friday, but it sure seems to me that this is all caused by artificial causes that should ultimately benefit common shareholders.. I’m pretty full on the name, but I may try adding to the common after the conversion… FYI, there’s a conference call at FPI tomorrow at 12:30 PM Eastern to get Pittman’s angle on this – I think call in at 1-866-262-6804 gets you in.. There’s also a presentation on the website under Investor Relations tab that they’re going to be referring to but so far I can’t get to it because of trouble on the site..

        2. I got out of this a month ago or so. I just felt that conversion was coming soon
          and was worried how the common would react and drag it down. The good news for common is CEO has more than once said this conversion will allow them to pay a higher divi for the common.

    2. That’s kind of crap. After the last adjustment, FPI-B had a redemption price of $26.54. They are trying to tout a 45% premium relative to the value of FPI when the notes were issued in 2017. Inflation alone has pretty much eaten up that premium and the value of the conversion today is just $26.08 with the current $12.50 share price. So, I guess as long as the share price recovers to something over 12.75, then we have at least broken even.

      Trying to decide if I should just cash out or wait for the conversion and see what happens.

      So many moving parts these days, it’s hard to keep up. Between all the changes with OTC issues, the flood of redemptions, and the uncertainty in the world, my head is spinning.

      1. And some will call all of this “Beautiful deleveraging” 😀 (just don’t kill the messenger)

      2. From the press release (below) I get a conversion ration of 2.1293 which is higher than what’s mentioned here or seeking alpha (with Trapping Value).
        What is wrong with my math?

        I’m summing
        Liquidation $25
        FVA $ 1.541
        Premium $ 0.591
        Divs $ 0.167
        Sum $27.1487
        Common $12.75
        Conversion 2.1293

        The shares of Series B Preferred Stock will be converted into shares of Common Stock, pursuant to a conversion ratio per share equal to (A) the sum of (1) $25.0000, (2) $1.5410, the FVA Amount (as defined in the Articles Supplementary), (3) $0.0591, the Premium Amount (as defined in the Articles Supplementary), and (4) $0.0167 of accrued and unpaid dividends to, but excluding, the Conversion Date, divided by (B) $12.7525, the 10-day volume-weighted average price (as reported by Bloomberg Business News) of the Common Stock on the New York Stock Exchange (the “NYSE”) on September 28, 2021,

        1. Greg, you have the decimal point in the wrong place when you compute premium $ 0.591 and divs $ 0.167. The press release has premium $0.0591 and divs $0.0167, a factor of 10 less in both cases.

      3. Not sure I understand why the conversion isn’t at the $26.54 redemption price at the closing of the transaction, which is reported to be Oct. 4?

    3. A history lesson that 2WR referenced. Several years ago AMH (American Homes 4 Rent) had two preferreds that included an adder for house price appreciation. They were issued at $25.00 and then every year AMH would publish how much the adder was. It was a complicated formula involving house prices in something like 15 different cities. All of us that owned the preferreds were counting on receiving the $25 PLUS appreciation when the issues were called. WE WERE WRONG! AMH also forced conversion into the common and we received roughly half of the $ amount for appreciation that we expected. The day they announced the conversion factor, both common and preferred fell IRC. In hindsight the only way to capture close to the full adder was to sell before the conversion was announced.

      Fast forward to today and FPI-B. Everybody that held the shares was expecting ~ $26.54 based on $25 plus the farm price adder. WRONG AGAIN! FPI-B closed today at $25.00, down from yesterday’s close of $26.46. So that extra $1.46 you thought you were going to get, ain’t gonna happen.

      Life lesson for all us: we should NOT plan on receiving the full adder amount on any future preferreds that companies offer like AMH/FPI. In AMH’s case IIRC, you got about half of it. In FPI’s case, you go NONE of it. . .

      We did not hold FPI-B in any account before today.
      (I have all of the AMH preferred records and could have given exact numbers, but am time pressed this evening. Working on some bizarre orders.)

      1. Tex – I disagree with you a little bit as to what happened on AMH preferreds but I’m purely going on memory and not going back over my records to verify my mem…. What you’re describing as what happened on AMH is a short term view… Unquestionably one would have been better off having sold prior to conversion, but just like this time around with FPI, only more severely this time, the common took a relatively predictable hit. However, it did not take a terribly long time for it to bounce back up again…. I know I waited it out and ended up getting whole on selling the common I got vs the conversion formula…… To be honest, I do not remember how market related that ability to be made whole was, i.e. whether or not Mr Market himself helped out, but I do know I ended up not losing vs original formula expectations. So I’m hoping (famous last words?) that holding thru this noise will eventually work out as well. It sure does seem that from a fundamental point of view, this conversion should be beneficial to shareholders, once the market works through the absorption of a boatload of new shares…

        1. 2WR, it is rare but I have to disagree with you on this. A few points:

          1) Everybody I know, including me, assumed that AMH would convert their preferreds to CASH. I had the probability of conversion so low that I did not calculate it. I was NOT alone. At least one SA writer if not more had pushed them under the assumption they would be converted to cash.

          2) I go by the conversion price(s) right around when the announcement is made. And by that measure AMH lost ~ 50% of its premium and FPI about 100%. I would not consider the prices say 6 months later and judge the conversion.

          3) Let’s assume that we were banking on a conversion to common and the common would sink. The play in that case is to NOT own either the preferred OR the common. Wait until the conversion is announced, then BUY the common. If the assumption is that the common will be temporarily beaten down relative to the market, you would get the best total return as it recovers. No need to take the short term losses on the preferred or common.

          4) I MIGHT add some FPI common in the next few days, and maybe short a REIT index like VNQ. So it would in theory capture the absolute alpha of FPI. . . just a thought, NOT A RECOMMENDATION.

          5) IIRC, Grid/you/me and others kicked this around sometime in the last year. The consensus belief was that FPI WOULD force a conversion. That is when I decided to sell out FPI-B from all accounts. Not that day, but over the next several months.

          1. Yes, Tex, I took and ran with the issue as far as I could and then sold last month. I dont like to be converted by management. I like owner optional convertibles better. I warned Trapping Value who wrote about this issue on SA, they would convert it soon, but he disagreed. Pittman kept cryptically talking about it the past year.
            Still I sold to avoid a 50 cents or so robbing down the road. I certainly wasnt thinking a $1.50 beat down.

          2. Oh, I don’t think we’re really disagreeing, Tex… No question it was a bad idea to just hold thru in either of the 2 cases, and I, too, didn’t expect the drop on FPI/FPI-B to be this severe…. My point was that the immediate negative reaction on AMH eventually worked out the way you’d expect longer term if the process itself was beneficial to the company overall, even if detrimental to both the preferred holder and the common in the short run. Hopefully, it’ll be the same this time around and my slothful way of overstaying situations and looking for them to be one decision positions will not come back to haunt me, but I’m sure not advocating that that was a smart thing to do.

            So now for the rest of the week, I have no idea what motivation there would be for anyone to buy FPI-B. What’s a buyer getting if he buys now? The same might be said about FPI with perhaps more slow moving sellers expected to show up after the conversion. But at least in FPI’s case, there’s probably some active arbitageurs already out there who’ll be around to support the price plus maybe some willing to bet on the ability to increase divs quickly once B’s out of the way… Will be interested to see what Pitman says tomorrow.

            1. “I have no idea what motivation there would be for anyone to buy FPI-B. What’s a buyer getting if he buys now?”

              One thing they sure aren’t getting is the $0.05 common FPI dividend that just went ex. One more screw job for the preferred holders on the way out (worth $0.10 on the ~2 shares they won’t get til Monday).

      2. Well, the conversion option is in the prospectus, so you have to consider the possibility that they will use it. Which means you need to price in a potential haircut. Obviously, the market was not doing that in this case.

        As I wrote here about a month ago when Wheeler REIT announced a plan to screw over two of it’s preferred series due to a lack of covenants, everyone should know what they own. That means reviewing the prospectus for each issue they own and considering what might go wrong and what protections they do and don’t have.

        For example, HCDIP burst on the III scene a couple days ago. While it has some favorable covenants, it appears to have one of the same weaknesses as those Wheeler preferreds – very limited voting rights. It does not explicitly say that changing the terms of the preferred require approval of preferred holders, which means some day down the road the common owners could strip them of value. Now, I don’t think that’s a concern today, but if you plan to buy and hold HCDIP, you need to be aware that such a risk is out there. Most investors just gloss over this stuff, but then one day years down the road it all of a sudden matters.

        1. I would suggest one should always assume possibility of getting hosed somehow in any preferred. Although they sit above common in stack, they sit below in terms of control. Companies love to issue preferreds but do little to support them afterwards.
          Look at the FPI presser. It was all in praise of benefit to shareholders, and no mention of it being off the back of preferred shareholders. The benefit of preferred shareholders getting seats on the board after divi suspension is just pure window dressing. Even the old ancient preferreds that allow majority take over of the board is of no value. As who do you think over the years bought up majority shares of the preferreds? No holding company is going to lose control over a billion dollar outfit, just because they didnt pay a $1 dividend to a few thousand shares outstanding.
          As far as HCDIP. If its being bought to put rice and beans on the table to eat in retirement, that plan may need to be revisited. They are basically viewed as lottery tickets for me with my purchase.

        2. Karma, to your point about HCDIP, and apropos of the FPI-B conversion, the HCDIP ‘Automatic Conversion upon Market Trigger’ feature is something to watch out for.

          Per the prospectus (https://www.sec.gov/Archives/edgar/data/1784567/000149315221013953/form424b4.htm), “At our option, we may cause the Series A Preferred Shares, plus accrued and unpaid dividends, to be automatically converted, in whole or in part, on a pro rata basis into Common Stock at the Conversion Price if the trading price of our Common Stock equals or exceeds 170% of the Conversion Price for at least 20 trading days in any 30 consecutive trading day period ending five days prior to the date of notice of conversion….”

          Since the Conversion Price is currently $4.50, I read that clause to mean they can force a conversion if the Common tops $7.65 for 20 of 30 consecutive trading days. If one bought the preferred at today’s $19.70 closing price, that conversion would definitely not be welcome.

          1. Bur, it would be very welcome. You then have to times that number by 5.556, and that is what you get in common shares.
            They actually have some nice features in it for dumpster dive. Such as higher change of control price pre first call date, and anti dilution measures. But, this stuff is cheap to type on electronic “paper”. The best provision one can hope for is the dividend each month actually gets paid, ha.

          2. You would get $42.50/preferred share, so that would seem very welcome. But the general point is made with any convertible security that is big enough to dilute the common stock – you need to price in a bit of a buffer. So in this case, if the common ever reaches $7.65, you should be prepared for a conversion that might hit the common price after the pricing is announced.

          3. Grid, Karma, thanks for the info.

            So ‘Conversion Price’ is both a price ($4.50) and a ratio (each share of pfd converts to 5.556 shs common). This clause would have been clearer to me if it had read

            “At our option, we may cause the Series A Preferred Shares, plus accrued and unpaid dividends, to be automatically converted, in whole or in part, on a pro rata basis into Common Stock AT A RATIO DETERMINED BY DIVIDING THE LIQUIDATION PREFERENCE BY THE CONVERSION PRICE …”

            I just haven’t had enough experience with convertibles to understand the shorthand.

            1. Bur, personally I just dont do mandatory time based convertibles as one can really get hosed there. Now this type of convertible can sometimes take a life time to reach company optional conversion. Look at Bunge. Its a very solid Fortune 500 company. It issued a convertible in similar vein as HCDIP 15 years ago, and it still isnt sniffing company optional conversion strike price.
              This is why I liked VNORP so much when it was in the $60s earlier this year.
              Back then it had a decent yield, but is a rare “live” convertible where any gain in common stock went right to the bottom line of the convertible times 1.95.
              So you had the decent yield of a preferred and all the upside of the common in conjunction with it.

  40. New Issue
    https://www.sec.gov/Archives/edgar/data/0000948320/000149315221023986/form424b5.htm
    Issuer: LifeMD, Inc. (Nasdaq: LFMD)
    Series A Cumulative Perpetual Preferred Stock (“Series A Preferred Stock”)
    1,400,000 Shares
    8.75% – 9.00%
    Maturity: Perpetual
    Segregated Dividend Payment Account:
    A segregated dividend account will be established and funded at closing with proceeds sufficient to pre-fund eight (8) quarterly dividend payments. The segregated dividend account may only be used to pay dividends on the Series A Preferred Stock, when legally permitted, and may not be used for other corporate purposes.

    1. So they’re funding dividend payments for the first 2 years, but have a call provision in one year, they’re using $10 mil of proceeds to pay back B Rily but RILY’s “interested in” buying $10 mil of the new issue and they’re writing in a provision that limits their own ability to issue debt without permission of the preferred holders, and B. Riley Securities, Inc., an underwriter participating in this offering, is deemed to have a “conflict of interest” within the meaning of Rule 5121 of the Financial Industry Regulatory Authority, Inc. or Rule 5121 requiring a “qualified independent underwriter” to participate and that QIU will be EF Hutton, division of Benchmark Investments, LLC. Why do I keep thinking of Drexel Burnham?

  41. LTSH only down 36% today. Ouch.

    Throwing out a bunch of orders, but not many hits. I’m too cheap. 🙂

  42. Another illiquid flipped to “Dark or Defunct” and “Pink No Information” today….CTGSP. This is the Connecticut Natural Gas 8% $3.125 Preferred, which is now a subsidiary of Avingrid (AGR). AGR is a $25+ Billion electric utility.

    This one has been one of Gridbird’s favorites in the past….but not sure if he is still in it? Non-redeemable and only 27,000 share float.

    Still paying a $.0625 quarterly dividend this month, but the bid is down to $4.50. Sold the rest of mine in June at $6.45.

    NASDAQ OTC says it will still trade on the “Expert” Market? If possible, will definitely be looking to buy some of this anywhere near $4/share.

    1. Rob, no I dont own any. But I did set some trot lines out on it to snag something. Trouble with it is I dont know if brokerage will transact trade if price point is hit.