I will be adding a new link titled “Sandbox” in the right hand menu.
That link will get you to this page.
I had originally set up the “Reader Initiated Alert” page for ‘alerts’. I was thinking this, for instance, might be when a preferred stock is undergoing a temporary selloff and someone wants to let the population know about it quickly. Of course we all (including me) use the ‘alert’ page for general messaging.
I am requesting that we start using the Sandbox page for all general talk, and try to preserve the ‘alerts’ page for ‘alerts’.
I have had a screen up on one of my monitors all week where I see all comments – no matter where they are posted–it is a great page and I wish everyone had a page like that–believe me we all benefit from all the knowledge being shared. I don’t want to stifle any of the exchange of knowledge, but hope to get things a bit better organized by adding the Sandbox page.
RLJ-A (7.8% cum perp preferred) is non-callable but convertible if the common is at 89.09 for 20 days (extremely unlikely). RLJ is a hotel REIT. The common has been weak. RLJ-A is the #5 holding of PFFA and has mostly stayed near par since Dec. Next ex-div Mar 31 for 49 cents.
I don’t see why RLJ-A should have a special exemption from gravity other than the high coupon. Watching.
it’s got 44 cents div baked into the price is why imho
Rock,
I love that “special exemption from gravity” line.
It reminded me of Austen Goolsbee saying “parachuting through space” this morning on CNBC before Joe Kernan reminded him you can’t parachute in space.
I wonder why Etrade has such a poor alert system- unlike Fidelity’s that actually notifies you in one or three ways, Etrade requires constant checking of their antiquated dropdown menu – or just try to keep it open.
Unless I’ve missed something.
Gary, it’s not just E-Trade. Schwab sent me a notice on 3/18 that my AIC (Arlington) shares will be maturing soon. They redeemed them on 3/17.
“You have a security in your account that is scheduled to mature on March 17, 2025.” Email dated 4:40am 3/18/25 – about 16 hours after the money was deposited……… Granted, they had been showing in my account with a 3/15 maturity for months, so I was well aware of the redemption. I’ve had the same thing happen at Fidelity. It’s, nevertheless, annoying though that they can’t be a little more timely in their announcements.
Hmm… needed to try a different browser on may Macbook- both firefox and chrom bring up a blank screen after hitting logon. Anybody having the same problem?
I had an issue recently, finally , logged out and then back in … and all OK.
No issue with Etrade- except with a notification was not responding properly.
The other two won’t work at all – even now.
thx
NEWT Notes :
https://www.sec.gov/ix?doc=/Archives/edgar/data/0001587987/000158798725000053/newt-20250320.htm
On March 19, 2025, NewtekOne, Inc. (the “Company”) completed an exempt offering of $30.0 million aggregate principal amount of its 8.375% notes due 2030 (the “Notes” and the “Offering”). The Offering was consummated pursuant to the terms of a purchase agreement (the “Purchase Agreement”) dated March 19, 2025 between the Company and eleven institutional accredited investors (the “Purchasers”). The Purchase Agreement provided for the Notes to be issued to the Purchasers in a private placement in reliance on Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”). The Company relied upon this exemption from registration based in part on representations made by the Purchasers. The Notes have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration. The net proceeds from the sale of the Notes were approximately $29.250 million, after deducting estimated offering expenses payable by the Company. The Company intends to use the net proceeds from the sale of the Notes to refinance existing indebtedness, with remaining proceeds, if any, for general corporate purposes (including payment of expenses incurred in connection with the issuance of the Notes, providing capital to Newtek Bank, National Association, and other working capital purposes).
The Notes will mature on April 1, 2030. The Notes may be redeemed by the Company, at its option, at a make-whole price at any time prior to January 1, 2030, or at a price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest, if any, thereafter. The Notes bear interest at a rate of 8.375% per year payable semiannually on April 1 and October 1 each year, beginning on October 1, 2025. The Notes will be the Company’s direct unsecured obligations and rank pari passu, or equal, with all outstanding and future unsecured unsubordinated indebtedness issued by the Company. The Notes will be effectively subordinated to the Company’s existing and future secured indebtedness to the extent of the value of the assets securing such indebtedness, and structurally subordinated to all existing and future indebtedness and other obligations of any of the Company’s subsidiaries.
There was a slick banker named Barry
The pace of issuance was quite scary
Sleight of hand was blurring
The income being non-recurring
Investors should be quite wary
———————————————–
I have no axe to grind — I bought 3 baby bonds on issue and came out fine all three times. But why would you hold the Z at this price?
Well as far as limerick creators go, better keep your day job, af…. LOL
You do have a point though, but even at 24.96 the YTM is 6.60% and for 10 month paper, that’s still not too bad and it is a maturity range I’m finding hard to want to extend right now… That’s not to say that stubbornness and inertia are not more of a reason than anything else, because I’m sure it is…. I did manage to unload a good chunk at the end of the year at 25.25, though, so that’s something…. Then there’s also the practical reason why I’ve continued to hold these, which I am currently addressing as we speak. My remaining shares are at Fidelity, so selling a large amount on a single trade is impossible…. So I just coincidentally initiated moving my shares to Schwab today along with 6 other names that Fido has deemed me too stupid to have accumulated at their firm. Thanks, Fido…. I think I’ll transfer a good chunk of cash out too, just my way of thanking them for looking out for this stupid ignoramus for owning/buying these at their firm..
BS did finagle an upgrade!
https://www.investing.com/news/company-news/newtekone-secures-30m-in-notes-credit-rating-rises-93CH-3939313
2WR I had to call today and first off the AI wouldn’t recognize my log in # on the phone twice. My concern went through the roof that someone had hijacked our accounts. I was trying to put in a limit order and even though the screen on my computer showed over 9,000 shares had traded it wouldn’t let me place an order to sell 581.
The lady who answered put me on hold and came back to tell me I could only sell 510 shares. I asked why. She started giving me the BS that it was because the SEC had deemed my trade would upset the market due to the amount I was trying to sell! by this time volume was up over 10,000
First time I had ever lost my patience over this in all the months this has been going on. I demanded to speak to a manager. I suspect I got this lady because I called the 800 # that showed up on the screen which my cell is identifying as Shapiro financial security
What the H is the 800 544-6666 popping on my Fidelity trade screen and the phone company is identifying it as someone else?
Has someone hijacked this number and every time I am being put on hold it’s because someone is accessing the account and saying they are Fidelity?
I will try calling again during business hours.
2 White a question ; for you please
are you migrated from Edge to T or S on Schwab? I will be force converted
on June 13; I can’t figure out T or S after much trying ; so I’ll have to move
all my accounts to another Broker with a simple to use Trading Platform
like Edge ; would Fidelity be where I should go ?
thanks for any advise
I came to Schwab via TDAmeritrade so I was comfortable with TOS and considered it my primary trading platform vs Active Trader Pro and Power ETrade before getting Schwabbed. Personally, had they kiboshed TOS, I would have gone elsewhere. However, I’m thoroughly convinced my TOS preference is mainly because it was my first…. I use aspects from each… Also important to know is I hardly use any of the sophisticated stuff offered by any of them, so how I use them or how little of what they offer I actually use would most likely make a sophisticated or active trader chuckle….
I’m only moving the specific securities that I know Fido’s nannying to death and moving cash also, because, well I can and why hold cash at Fido that I suspect I will eventually want to put into additional populace of Nannydom… plus if I move enough in aggregate, I’ve gotten a promise from my Schwab rep that they will match my standing incentives being offered to me by ETrade.. I’d be tempted to move more into ETrade, but you essentially have the same MM problem and late dividend applications there that you have at Schwab but I don’t have an established IRA account there so it’s more difficult to move from both accnts to ETrade – Additionally, not for any particularly rational reason, I want to keep my house sale proceeds at ETRade not commingled with other funds at least for this year…
Does this help?
2WR, we never forget our first!!!
Honest query. What am I missing with this “trading platform’ angle people are going on about? I just go to website and trade. I don’t understand this angst people have about “trading platform”. I put that in quotations not out of disrespect, more out of not understanding at all what a trading platform is or why I need that verse just simply trading via the normal website. Maybe it’s my penchant for simplicity thats confusing me. Any way you can elaborate what these various platforms provide that I might want to use those instead of the website? I know I speak from maybe a humorous ignorant position.
Keep in mind, pig, this is coming from the guy who doesn’t use spreadsheets so maybe these platforms are entirely replaceable for the more creative, but for me, using them is an easy way to watch overall market activity as seen thru the eyes of an unlimited number of self created watchlists all in one place…. I can easily get a feel for the overall market plus see customizable charts of price performance over any length of time, etc. I can also see Level II quotes, including depth of bidding to better know where to place stink bids and because of using more than one platform, I see different interpretations on what Level II is telling me. I also can see actual trades immediately including size no matter how small and where the bid and asked was at the time of the trade. You can set trade alarms which I don’t use to alert you when a stock hits a particular price and create conditional trades, etc., again which I don’t do. Also right inside TOS there’s a great news streaming service that I keep running all day which occasionally generates some good gems. Also these platforms seem to more and more provide all kinds of links to options and how to view them etc., but again, I pass on that aspect… So for me, they are a great way to consolidate how and where I can get a read on what’s going on across the board and also on my particular stock symbols of choice. Are there alternative ways to accomplish the same thing? Probably,but the platforms work for me…. BTW, at least on Fido, you can use Active Trader to research and place fixed income trades as well.
CpN … Citi TRUPS ….. Long past the call, yet stable history above $30.00
I have owned long time & like it in the $30 area, recent closes in the $30.07 area. Any holders , comments.
Own it and love it at my cost basis of $27.50. Looking to add it at $30.00 and below.
Interesting CD offering: 5% apy 18 months .Mountain America Credit Union (they have over 1 mill members). You can join by paying a few bucks to join the American Consumer Counsel.
No limit on the above.
Offering an add on certificate up to $100k also at the same rate. I’ll go for the add on as a free right to put up to $99,000 more in the cert.
As of May 2024, Mountain America had over $19B in assets (stale Weiss ratings).
https://weissratings.com/en/credit-union/257
Thursday @ 7:15am ET …..In addition to the U.S. Tsys lower in yld ….
2yr to 3.94% ….. 10yr to 4.20% …..
Euro Rates lower also …. Bund down 3bp …. UK down 7bp
Inflation not an issue, I guess ….. yet like it.
UMBFP X-DIV DATE : In case anyone’s wondering, the UMBFP x-div date will be March 31. Given this is a first as UMBF, I know Fidelity, for example, does not have it listed and the info on QOL is not definitive.
https://investorrelations.umb.com/news/news-details/2025/UMB-Financial-Corporation-Announces-Dividend-on-Series-A-Preferred-Stock-Nasdaq-UMBFP/default.aspx
UMB Financial Corporation Announces Dividend on Series A Preferred Stock; Nasdaq UMBFP
March 12, 2025
KANSAS CITY, Mo.–(BUSINESS WIRE)– UMB Financial Corporation (Nasdaq: UMBF), a financial services company, announced today that its Board of Directors approved a dividend of $175 per share of the Company’s Series A 7.00% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock (the “UMB Preferred Stock”), which results in a dividend of $0.4375 per depositary share. The dividend is payable April 15, 2025, to holders of record of the UMB Preferred Stock as of the close of business on March 31, 2025.
UMB Financial acquired Heartland Financial (HTLF) on January 31, 2025. Shares of the former HTLF Series E Preferred Stock (the “HTLF Preferred Stock”), were converted to shares of UMB Preferred Stock at an exchange rate of one-for-one in connection with the acquisition, providing stockholders of the HTLF Preferred Stock with shares of UMB Preferred Stock with the same terms.
UMBFP closed today at 25.34 wit .316 in accrued..
I’ll take that $175 dividend. Hope it wasn’t a typo.
2wr, thank you.
Similar YTC to WTFCP/M. All three set to float/reset/be called on 7/15/25.
Could be swap opportunities among these, to gain some YTC. Seems to me WTFCM has more (though still maybe less than 50%) chance than the other two of hanging around. I’d hate to swap into WTFCM and then they let the others reset!
SHY, WFC-L, PFF, LQD and JNK all moved higher today after the FOMC statement. The end of QT might have had something to do with it.
Are you ready for “Liberation Day?”
April 2nd is purported to be the day when thousands(millions?) of reciprocal tariffs are to be announced and applied.
Do you care?
Buy and hold?
Or trade?
Lots to think about beforehand…..
– Announced/not announced/announced but postponed?
– Economic effect?
– “Buy the rumor, sell the news?”
– Ignore the first hour of trading – that’s retail reaction. The last hour is when the pros step in.
????????????
Gonna be interesting.
I’m planning many out-of-the-money Buys/Sells
IMHO
April 2nd bears a lot of the responsibility for today’s Fed “stay the course” decision.
I’ve never been good at predicting the future based on geopoiltics. Let partisans fret over their bias I’ll stay nimble and react to whatever the market does like I always do.
Martin, I have a few low ball bids on some international stocks. On the other front ADM is contemplating selling its futures business and a seed oil processing plant in Bolivia. I suspect it’s shedding high risk and non essential segments of the business to pay down debt and maintain the dividend. Might be a good play on a low ball bid.
If it looks like it’s actually going to happen, I’ll short the hell out of the market in twelve days.
i bought some s%p puts as a hedge. may expiration 5% below the market if more tarrifs get delayed ill sell them but i highly doubt they will be and i expect a sharp sell off at least initially. thought about buying april puts but time decay would be to high for me with only 2 weeks to expiration after april 2
Westie, I thought I had shed a few stocks that have a higher risk and cancelled some bids. Now I think I need to go back and look at my bids again and maybe cancel more or lower my offering price.
Summary of FOMC statement:
https://www.axios.com/2025/03/19/federal-reserve-interest-rates
As I suspected, the amount of QT was reduced starting next month, which for the Fed is ASAP.
“Under the change to its “quantitative tightening” the Fed will allow the portfolio of Treasury securities on its balance sheet to fall by only $5 billion a month, not the current $25 billion.”
The Fed will be buying more treasuries and adding to the reserves of banks. The move should help stabilize or increase financial market liquidity.
MSBI, the common stock of the bank with preferred MSBIP, continues to trend lower after a bad earnings report in Jan.
Other commons taking a dive include OXLC, ECC, EIC, CCIF, XFLT.
PPWLM replacement (?). May only be trading via Cusip (TBD)
Pacificorp. Callable 06/30@100 – Fixed to Float (reset issue) – 7.375% FIXED until 09/15/2030 then 5YR CMT + 3.319%
However, the interest rate during any Reset Period will not reset below 7.375% per annum (which is the same interest rate as in effect from and including the original issue date to, but excluding, the First Reset Date).
Junior Subordinated Debt
Credit Ratings BAA2/BBB-
Part of Berkshire Hathaway Energy
Cusip 695114DF2
https://www.sec.gov/Archives/edgar/data/75594/000110465925025105/tm258625d6_fwp.htm
https://www.sec.gov/Archives/edgar/data/75594/000110465925024793/tm258625-1_424b5.htm
DYODD PacificCorp has litigation risk
https://www.pacificorp.com/about/information-wildfire-litigation.html
Wildfire risks are detailed in the 424b5 prospectus.
Plus the Moody’s bond report is available on Schwab and Etrade when you search by Cusip and they provide their independent commentary on the wildfire risks.
I am certainly not very happy that Moody’s and SP do not seem to be factoring these risks into their credit ratings of BAA2/BBB-
Clearly, the company has priced this in because the coupon is very high, the reset kicker is higher, and it has a floor of 7.375%. To me, this is priced as a below-investment-grade issue. Poorly rated by the major credit rating agencies. Just one man’s opinion.
I recently purchased Nevada Power, also a Berkshire Hathaway Energy company. BAA2 rated. 6.25% with a below 2% CMT kicker and no floor. Same holding company and, same Moody’s credit rating priced dramatically different.
They tender for their 6% and 7% preferreds at premiums that equate to below a 4% yield and issue new debt at over 7%??? A capital play of some sort? Get rid of subordinated non-debt capital for senior debt?
Wow, I will def try to get some… I was excited about the Northwest issue, but this looks even better!
OldmanRB – My guess is there was restrictive wording in the pref docs… Pacificorp has been eying a de-consolidation.. wouldn’t be surprised if related.. I was able to speak w Pacificorp treasury person (or maybe it was IR), and she said the tender was related to “cleaning up some old securities on balance sheet,” or something along those lines.. but obvi she wouldn’t tell me of corp changes.
https://wyofile.com/pacificorp-mulls-breakup-that-could-align-wyoming-with-other-pro-coal-states/
Steve-
Interesting coupon, esp. with the floor.
The last sale on FINRA is 102.75. My spreadsheet calculator says YTC is 6.7%. I’m not going to verify, and I would pay more than par anyway.
The recent batch of sub bonds look like they all used the same template. If markets go screwy between now and 2030, all of these 2030 resets are going to be at risk one way or another. I own enough of them already. I really need to stop buying more.
Agree fully. I also have enough.
Oops..I meant wouldn’t pay more than par
Offered at 101 right now.. looking at IBKR which is connected to other FI trading platforms.
Wed. Pre-Mkt CME Fed Watch re FF Probltys …..
Current…. Mtg announc today …4.25%
CME Probs …
May … Still at 4.25% …85%
Jun … Cut to 4.00% … 53%
Jly … No Chg =49%
Sep … Cut to 3.75% @ 38% …. Unchg @ 4.00% 36%
Muni bond prices continue to fall, indicating to at least one watcher–me– a greater likliehood the exemption will be axed.
new issue yields are running .2-.4 higher on AA/AAA bonds while treasuries have fallen.
The marks on all my bonds have fallen too.. I have over 80 diff issues.
Bond buyer has a piece from several days ago merely containing the Tax Policy Center addressing what happens to cities and states if this is axed.
— Maybe munis are falling because of a perception of potential increased expenses and therefore falling credit quality — cuts at the US Government level may get shifted to state and local governments. Local governments are already expressing concerns about this. There’s also the small matter of the 20% electric increases coming to about 13 states, likely unanticipated in local budgets.
— Munis are already federally taxable in a number of subtle ways. IMHO, it’s a lot easier to tinker with arcane rules than to attempt an potentially unpopular outright abolition.
— I think you have correctly identified the risk as a change in relative spreads. On the theory that if something does exist or could exist, there is an ETF for it, there should be a solution. JMO. DYODD,
BearNJ,
Stuff I hold is either housing bonds (containing insured MBS), or Texas school bonds backed by the $40 bill Texas PSF, a firm AAA.
I think I need more taxable stuff
Must be a Muni Pro knowing about the MBS & Tex PSF markets.
Solid credits, been tested thru some tough mkts.
Hat’s Off.
. I know very little about bonds other than what I have run across in 25 years of buying them.
I may just be really worried. Take a look at MUB and TLT and they seem to have both dropped a few points in the past month, but I really don’t recall long housing bonds being in the 4.80-4.90 range for quite awhile. There’s a NV Las Vegas Convention & Visitors Bureau bond trading at the lowest price I’ve seen since I started watching it last year.
Still, the muni exemption news has been in the wild for awhile.
I know that individuals hold roughly 70% of munis and I am just making a guess the possibility of losing the exemption is not on their radar. Most people who own munis don’t look at prices or news on them every day.
I’ve said before I’m not buying any until the tax bill is decided , and I’m trimming the portfolio. After making some sales at not so good prices to dealers, I noted the lower tax on qualified dividends and cap gains is the 2nd biggest “pay for” that could be cut. I posted a list in order of size of possible pay-fors the other day
I ditched a few small bonds yesterday , nearer term stuff .
My thoughts are my own and likely reflect a degree of fear
It, appreciate muni backgrnd….. Due to the Exemption topic, back in 4th Qtr 2024, I started a wkly track of 10yr Tsys yld vs a Bloomberg 10yr Muni yld.
For the Oct ~ Dec 2024 weekly’s I see a High % of Muni / Tsy at 71.8% (10/25)
…………………………………………. a Low % of Muni / Tsy at 66.5% ( 12/8)
First Qtr 2025 …. see a High % of 71.9% ( 3/14/2025 )
……………………………….. a Low % of Muni / Tsy at 66.4% ( 2/14/2025)
Also, feel that the voter backdrop of exemption would be tough.
Jim,
I think the administration does care more abt blue collar voters than the smaller population of muni holders. It would not surprise me that we pay for no taxes on tips and OT by eliminating, among other things, the muni exemption and qualified dividends.
The President has at least $175 million in a taxable money fund at Schwab, so the self-centered skeptic in me thinks tax rates will not go up.
I’ve been saying for a long time this President usually does or tries to do what he said he’d do when campaigning. That’s quite a difference from others who have held the office. That’s not intended as a show of support for either side just an observation
Eliminating Qualified dividends would be a killer. That’s where most of my taxable money is I got it down to 0% tax on Q div.
FYI there is an article today in WSJ about impact on munis, but it mostly deals with credit uncertainty
https://www.wsj.com/finance/investing/fast-changing-federal-policies-shuffle-municipal-bond-strategies-69a75fcd?mod=md_bond_news
MSTR redux:
Fidelity is offering the 10% MSTR perpetual preferred, and it’s SENIOR to the 8% it just issued.
Funny: It’s PERPETUAL STRIFE PREFERRED….you read that correctly. Does STRIFE describe your life when owning it, or the relationship you’ll have with the STRK holders?
check out the FWP on Sec.gov. It is a tweet from Michael Sayler.
Text of post: “$STRK while the iron is hot.”
Good grief on an official US website
https://www.sec.gov/Archives/edgar/data/1050446/000119312525054901/d914208dfwp.htm
lol @lt
Good move putting this over here. By the way I finally got around to replying to your post in that other thread page but it’s buried at the bottom now, so I will paste it here as I’m sure you are furiously trimming and making allocation changes so you can load the boat on these latest MSTR perpetuals. You should also consider HELOC and credit card balance cash transfers to your checking account while you are at it!
“I do not understand this statement.”
lt – what I’m driving at here is, because the perpetual preferreds are being placed on the equity side of their balance sheet and it’s technically not something he has to ever pay back, the cash proceeds from those preferreds relative to bitcoin is lowering his average cost, hence creating more equity. I’ll give you a scenario…
Say I go out and buy a kilo bar of spot Gold for $100K cash; this is my cost basis. Now pretend, you have a magic monopoly game and gave me $100K of which I was able to go out and buy another kilo bar of spot Gold with.
In essence you have cut my cost basis in half in that scenario. Similar phenom is happening here. The cash proceeds raised from the preferreds is buying more spot BTC hence it is fully accretive. Now if BTC price tanks to $5,000, obviously this becomes a different conversation…..
Theta,
I might also compare MSTR’s B/S to a magic game, but I think the game Saylor is playing is pretty clear… and I think it’s more about keeping BTC from falling below his average price ($66k at last check, but likely to rise) and attempting to corner the market in BTC.
I did read about the CAMT and I saw a comparison to Berkshire’s (and every other corp’s ) holdings of corporate stock. Those are always reported on a balance sheet ,and on an income statement with a line item : Gain/loss on unrealized marketable equity securities (and that’s different for tax reporting) and the argument is BTC should be treated similarly. We will see what happens! I too think for fairness it should be handled MSTR’s way
I do get what you’ve said .
Between watching the common shares issued like toilet paper and watching cash on hand in the quarterly reports and the average BTC price, you should have a good idea on what is going to happen with MSTR.
There will be one or more warning bells to keep you from being suprised.
As long as BTC holds the low $70s from a TA perspective, its projected to continue moving higher over time. If it breaks, you pivot and definitely shouldn’t be holding onto any MSTR related :).
Future expanding Euro economy has been in financial press for mos.
Current Germany spending bill to be this week. Seems to be broadspread with other countries.
Besides using large, U.S. based international-focused cos. any comments on U.S. listed Euro focused items.
Thanks
Looking at Northwest Nat Hldg Co Stock symbol NWN
Not crazy about 10 years fixed but it’s 7%.
SP credit ratings BBB. Not rated by Moodys
Junior Subordinated debt
Cusip 66765NAA3
Callable 06/35@100 – Fixed to Float – 7% FIXED until 09/15/2035 then 5YR CMT + 270.1BP
In business since 1859
Is anybody familiar with them?
https://www.sec.gov/Archives/edgar/data/1733998/000119312525054581/d876762d424b5.htm
https://www.sec.gov/Archives/edgar/data/1733998/000119312525052953/d876762dfwp.htm
Primarily natural gas and water business. The industry classification is Gas Utilities
NiSource (it was called), which many owned on the site, has a market cap of 18.5B. Spire (SR/A), also owned by many, is much smaller than NiSource and has a market cap of 4.4B.
The market cap of NWN is 1.7B. So this is a very small company with a very strong credit rating (BBB). A better credit rating than NI and SR. I am familiar with Suburban Propane in the Northeast since I use them for propane. That has a market cap of 1.35B.
I would call this a tiny investment-grade company and this offering is in my view likely to be illiguid.
DYODD
good comment.. check S/A for Northwest Natural:High Yield Utility Stock for Volatile Times 1/29/2005 Gen Alpha
Thanks seems like a stable well run small utility company. It fits in my portfolio but with less of an investment than I normally make.
Steve –
I own NWN common. Started buying it at $35.50 when one of my small cap managers mentioned it in his quarterly commentary back in 1Q 2024. Been a solid performer. Here is what he wrote…but of course DYODD:
“During the quarter, we purchased Northwest Natural Holding Company (ticker: NWN). Founded in 1859, NW Natural is a natural gas utility operating in Oregon and Washington. While the company targets long-term earnings growth of 4%-6%, earnings per share in 2024 are expected to decline by 7% to 15%. Earnings are being pressured by above average investments in the utility’s infrastructure and higher than expected inflation. In response, management filed for a rate increase with regulators in December 2023, which would provide the utility with a 10.1% return on equity. If approved, new rates are expected to go into effect in November and should move earnings in 2025 closer to our normalized estimate of $2.80/share.
NW Natural is currently trading at 13x our normalized EPS estimate and 1.2x tangible book value—both near historical lows. The firm has increased its dividend for 68 years in a row, and the stock offers a 5.3% yield. While there remains uncertainty related to regulatory decisions and interest rates, at its current price, we believe we’re being adequately compensated for risk assumed.”
Thanks, I purchased a small taste of it for my wife’s IRA at $98.81. 7.08%
If my memory serves me, sometime in 2024 Bea may have mentioned she was buying or holding NWN. It was then near its 52 week low. Now about 20% higher. I want my utes common stocks to have a better dividend increase history.
I don’t think it belongs in either.. how about the corner coffee shop? ..just my thoughts
Get me in at a 45 degree angle, and I mean all the way in.
https://www.sec.gov/Archives/edgar/data/19617/000121390025024608/ea0234690-01_424b2.htm
Treasury Notes
What in the world……..? 29% contingent dividend? What could go wrong? Ponzi is probably not the right term, but SCHEME seems to fit. I can’t even wrap my head around this. Is this type of offering common?
Since it doesn’t seem like it will be publicly traded, I wonder if there will be a way to follow its performance.
Out of curiosity, is anyone here interested in something like this?
And if so, can someone explain it? I can’t even figure out what they are using the proceeds for. Buying derivatives? In what? Can they really be able and adept enough to make a 30% + return?
When it comes to MSTR, nothing completely surprises me. The M Saylor interviews are extremely entertaining. The message honing that occurs from 2020 or so until present day is wild. The company had some issues with the SEC around the .com bubble and it’s an interesting history if you want to go down the rabbit hole. Lots of people making money selling option premium (many are convertible bond holders). I foresee a spectacular disaster in the future but the entirety of this comment is just an opinion and not statement of fact.
https://www.sec.gov/news/press/2000-186.txt
Reverse barrier convertibles welcome back!! These are very popular in Europe but in the US they disappeared after the 08 crisis with a lot of retail complaints. Usually (but not always ) the derivatives embedded are way overpriced.
If there is a secondary market it can be interesting.
I looked at valuing those MSTR converts as long term call options and fully agree. Each prospectus feels like it is packed with varied conditions on when equity can be used to repay debt and it is quite involved.
After MSTR had early success there were heaps more CBs being issued esp in that crypto space but to lesser degrees of success by my estimation. The MSTR share dilution strategy also seems to have been replicated a lot by the quantum computing sector and the common shareholders don’t seem to mind. I try to wrap my head around that regularly but should probably stop. Must disengage reasoning, see the wave and ride it before it closes out. Easier said than done.
Not sure if this belongs here or over on the Litter box. Compass (COMP) is in advanced talks to buy Berkshire Hathaway’s residential brokerage business.
BK continues to raise cash. This doesn’t reflect confidence in the housing market or any other investments related to housing, just my thoughts.
Charles
My daughter works for BH Realty
Sent me an inter- company e-mail strongly denying the Compass buy
For whatever it’s worth