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READER INITIATED ALERTS

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2,060 thoughts on “READER INITIATED ALERTS”

  1. MMFs today…

    VMRXX – 5.28%
    VUSXX – 5.28%
    VMFXX – 5.27%
    GABXX – 5.26%
    DTGXX – 5.22%
    IDSXX – 5.15%
    SWVXX – 5.14%
    FZDXX – 5.14%
    TSCXX – 5.12%
    PRTXX – 5.05%
    PRRXX – 5.03%
    SNVXX – 5.02%
    SNOXX – 5.02%
    SNSXX – 5.02%
    SPRXX – 5.02%
    SPAXX – 4.95%

    Metals…

    Copper – reaches all-time high at $5.15/lb, up 38% y/y
    Silver – $31.88 toz, up 34.8% y/y
    Gold – $2419 toz, up 22.8% y/y

    Other Stock News…

    Walgreens ~ 52 week low….$16.67, down 6.5% today, 5.6% divi, about 50% drop over the past year (52 week high $32.88)

    1. I use some of the BR products and the pressure has motivated them to create a discount management, tender offer type of corporate action. I have been playing the shrinking discount trade and think Saba is doing the lords work, fwiw.

      1. J and Jbosch thanks for the heads up on this! I like activist situations and it looks like BIGZ might be an interesting idea.

  2. Vanguard to charge certain fees; https://finance.yahoo.com/news/vanguard-nickel-and-dimes-grandma-after-49-years-without-junk-fees-100022222.html

    Saw this on Yahoo this am, could go in Broker Information category but thought it was worth an alert; while I am w Fidelity I hope it is not monkey see monkey do w these firms. w/ zero commissions I wondered how long it would last till they started, hopefully again not a trend.

    The one that got me was a fee on collecting your dividends in foreign stocks and ADRs. As someone with many ADRs and foreign stocks, often w big dividend components as part of or most of the expectations of returns, this caught my eye. So grandmas and grandpas be aware. Bea

    1. Bea, it’s already happening at Fido and Schwab. Little fees like .28 for a transaction being tracked on. We all should have known the all you can eat at the casino would go away at some point.

    2. The fee for filing a MLP tax report in a Vanguard IRA account will go up to $500. Probably not a concern to high rollers or investors who don’t put LP’s in retirement accounts. May change the thinking of smaller investors. DYODD.

      1. This 990T tax filing fee has popped up before at a bunch of brokers, but most dropped it when there was enough customer uproar. Schwab was $300, but it vanished within a couple of weeks. It will be interesting to see whether it sticks this time.

        Its a ridiculously expensive fee for a tiny amount of work. Most brokers outsource it to an accounting firm, which does an automated filing (and most get it badly wrong – but its up to you to fix it). Takes about 5 minutes of work by a person (tops).

        Personally, it is an easily avoidable fee. Just don’t get more than $1000/year in UBTI in an IRA (or similar) and no filing is required.

        Simplest way is just not to put MLPs in those accounts. Just don’t – or be ready to pay the fees and to repay all the tax “benefits” you think you are getting from an MLP.

        MLP distributions are tax deferred, not tax free – and if you sell the MLP in an IRA, all the deferrals get charged to you immediately as UBTI. Just not worth it.

        Note that most MLP preferreds don’t throw off UBTI, but you should check before you buy them in an IRA.

        As someone with over 90% of my money in IRAs/Roths of some type, I live with this every day.

        1. Can someone confirm what ubti should be expected to be thrown by ET-I? I believe someone said it is different than the old ET preferreds.

            1. Just to carry this ET-I discussion forward a little:
              -If you own ET-I in a tax free account (like an IRA)
              -and it continues to pay $0.84 a year,
              -and you own nothing else in the account that generates UBTI,
              you won’t want to own more than 1190 shares in the account or it will push you over the $1K UBTI limit and your broker will have to file a 990T tax return for your account (and you may get charged a fee for that – some brokers are reportedly charging $500 to file).

              Of course, this whole UBTI problem doesn’t really apply in a taxable account.

              Personally, I jumped into ET-I in an IRA in January when the other ET preferreds were called (stupidly, without reading the prospectus), but when I finally read it and discovered the UBTI problem, I jumped back out. And once again proving my family motto that it is better to be lucky than good, my shares were up almost 15% in the couple of weeks I owned them….

        2. Last week I got a notice that Fidelity was wanting me to review 990T for KRP Kimbell Royalty Partners LP… I panicked for a moment and then I got on the chat and reminded them that this has been a C corp since 2018! ‘oh these do go out in error’.. I am guessing??? their ‘AI’ sees LP and sees 990T or something.

          I wanted proof that this was an error and a letter which they refused to provide, so I copied the chat discussion and was told they retain these. No longer in the stock and haven’t been in 2024 (no K-1 lps in my portfolios) I just thought it was worth mentioning. Really have to stay on your toes every day. Bea

      2. Bear ; you just have limit your MLP distributions to less than $1000; and there is no filing requirement.

    3. Scorpio Tankers Inc. (NYSE:STNG) (“Scorpio Tankers,” or the “Company”) announced today that it has received approval from majority lenders under its 2023 $1.0 Billion Credit Facility to make an unscheduled repayment on the term portion of this credit facility in June 2024 of $223.6 million. This prepayment is to be applied against the eight quarterly principal installments of the term loan falling due between the third quarter of 2024 and the second quarter of 2026. Given the lower debt service costs arising from this prepayment, the Company’s cash break even rates are expected to decrease by approximately $3,500 per day for the first year following this prepayment.
      This repayment will not impact the availability under the revolving portion of this credit facility, which is currently $288.2 million.
      After giving effect to this repayment, the expected future principal repayments on the Company’s outstanding indebtedness as of March 31, 2024, which includes principal amounts due under the Company’s secured credit facilities, lease financing arrangements and Senior Notes Due 2025, are as follows…
      https://www.streetinsider.com/Corporate+News/Scorpio+Tankers+%28STNG%29+Announces+Agreement+for+a+%24223.6M+Prepayment+under+its+2023+%241B+Credit+Facility/23249272.html

    4. Oddly enough, that fee is probably to offset the extra processing required relating to foreign tax withholding on IRA accounts.

    5. Oddly enough, that ADR fee is probably to offset the extra processing required relating to foreign tax withholding on IRA accounts.

    6. Thanks. I’m wondering how Vanguard will change when they bring in an outsider to run it. Jack Bogle was one of a kind, and his philosophy still has a huge influence on the many Vanguard workers who have never been with another firm.

  3. Current asks on Corteva (CTVA) preferreds:

    CTA-A: $55.00 ask, 6.36% current yield
    CTA-B: $70.00 ask, 6.43% current yield

  4. Guys,
    does anyone have an opitonon on the South Jersey Industries (SJI formerli) credit instruments, namerly SJIJ (only accessible through borker i guess) and SJI 5.012 31 bond? Is there any possible way to find out what is going on with the company’s financials once it went private?
    Thanks,
    MB

    1. MB….. I own a full position in the bond (CUSIP: 838518AA6) that matures in 4/15/31. South Jersey was bought by Infrastructure Investments Fund (IIF), which is advised by our buddies in JP Morgan. They are a large fund, 24 billion or so last count, and own a bunch of utilities. There was a ton of discussion about them last year when the deal was approved by the New Jersey Board overseeing utilities. I don’t lose any sleep over owning the bond as I recall nothing is going to happen to the bond as it is considered about as secure as you will get these days. The money comes quite regularly from them. Right now it is $79.05 yielding about 9% to maturity. Pretty good deal. I got it at just over 8%, maybe I should have waited. I think you can buy it OK if you want some. Search the site and you might be able to find the posts last year about it. Gridbird was very knowledgeable about I remember and was flipping it some. FINRA has info about it also.

    2. If you dig through New Jersey Public Commission documents or possibly even request it, you could be able to find their financials. As per merger approval, SJI and its 2 regulated subsidiaries are required to submit them in SEC format. See bottom page 12 below link under “Reporting”.
      https://www.nj.gov/bpu/pdf/boardorders/2023/20230125/2F%20ORDER%20SJI%20IIF%20Merger.pdf
      If you wade through pages 8-12 ish you will see (as in most ute mergers) the concern really is all about the 2 regulated utilities SJI owns. Keep in mind SJI is not regulated, it is just the holding company and they can add various nefarious amounts of debt if so desired. And SJIJ and 2032 SJI resides at the hold co level and is not the responsibility of the regulated utilities to pay in any way.

      1. Thanks guys.

        GridBird – What are the odds of that? I guess noone can tell but remember that IFF was not known for screwing over investors. But I find it odd that the bond is not going anywhere and they are not doing stuff bout it like buying it back. Some other utilities AES are issuing in the 7.5sh their subordinate debt..

        1. Its not so much them screwing anyone over. It would be investing into too many boondoggle energy ideas that go bad. Like maybe this one they are just getting into. Greenies gone Wild!
          https://www.roi-nj.com/2023/12/20/industry/energy-utilities/food-to-fuel-sji-to-construct-huge-rng-facility-in-linden/#
          Just stick to meat and potatoes damnit! I own both issues by the way. Delisted things tend to trade lower. Look at the Phoenix Cos 2032 baby bond. Reputable insurance specialty raters A.M. Best have it bb+ and positive and it still trades at about 13% YTM.

          1. A gal who used to work for us started a business where they research all kinds of gov. funding programs and “sell” companies on starting those kinds of projects with uncle sam’s money (best kind of OPM, she says, because the Biden administration seems to be much more interested in being seen to be spending the money than in getting results). They focus on smallish to mid-sized projects (far less competition). Its was fun “mentoring” her through the startup.

            A huge amount of government money sloshing around just looking for someone to spend it.

            1. Private… Your use of the term OPM made me think of my enlightening my father a couple of years ago on the term. Dad has a nice riverfront house on the intracoastal waterway in a small town in northeastern North Carolina on a coastal river (three miles wide at Dad’s house). This part of NC is all coastal plain, flat as a pancake, has some of the richest soil you will find anywhere, and home to huge farms that rival the Midwest. It is relatively undiscovered in terms of visitation, largely unpopulated, gorgeous wildlife refuges, and a sportsman’s paradise. The larger ones are upwards of 25,000 acres. The fields are huge, 5, or 6 miles to the other end is not unusual. Dad worked for Allis Chalmers farm machinery division and was a small-town dealer of their equipment in the 1950s and 60s. He loves to ride around and watch the farming operations and equipment at work. We often have discussed the changes in farming to the big corporate farms, the huge equipment, and the high cost involved. He was familiar with farming on credit with one or two row equipment. I introduced him to what OPM is and explained to day that farming involves multi million dollar lines of credit etc. Now when we ride around and see several million dollars of equipment in a field he laughs and says OPM at work! Our record is six 24 row John Deere combines (These run about $650,000 each) harvesting soybeans in a pattern of one behind the other. That’s 144 rows of soybeans being picked in one pass! I am leaving tomorrow to spend next week with Dad at the riverhouse. I am taking his truck he gave me a couple of years ago when he quite driving for us to ride around in and talk as usual. He loves to ride in the truck. I will tell you he celebrated his 105th birthday a few months ago. Very healthy, still gets around, and mind is very sharp.

        2. BTW, due to the new structure of capital funding now being internal and no need for public capital, it wouldnt surprise me at some point if they do offer a tender well below par for the old SJIJ. The old SJIU I dont know being its only 7 years away. Certainly possible, but not my thesis for buying however.

          1. Gridbird, I don’t think the old SJIU you referred to above is the bond due 4/15/2031 CUSIP 838518AA6 is it? It’s been over a year since I even thought about SJI in general as I put this bond away deep in the sock drawer. Another thing…… I looked on the FINRA site earlier this week for the bond just to see what it had been doing and I see that it has fallen to ZERO on the FINRA graph five times since August 2023. I assume that is some sort of hiccup on FINRA’s part? That bond value can’t be going to zero periodically! If so I would love to convert it to my Roth on one of those days!

            1. Yes the 2031 is the old SJIU. Reconstituted at conversion. Unlike it’s SJIJ sister this jr. Sub note is note deferrable anymore.

  5. AGM-C redemption

    https://www.prnewswire.com/news-releases/farmer-mac-declares-quarterly-dividends-announces-intent-to-redeem-series-c-preferred-stock-302146854.html

    Farmer Mac also announced that it intends to provide notice to the holders of its Series C Preferred Stock of the redemption of all of its outstanding 3,000,000 shares of Series C Preferred Stock ($75 million). All shares of Series C Preferred Stock are issued in book-entry form through the facilities of The Depository Trust Company (“DTC”). Farmer Mac will provide written notice of any redemption to the holders of Series C Preferred Stock between 30 and 60 days before any redemption date according to DTC’s procedures. Any redemption of the Series C Preferred Stock will not affect the payment of the dividends declared on the Series C Preferred Stock on July 17, 2024 as described above.

    1. Peculiar- the reg schwab trading platform has it with quotes, but TOS shows no figures even tho it will take the symbol. Is about 25¢ below the payout in July ( 25.13 last)

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