Spirited Conversation on Site

I have followed the conversation in the last 24 hours on the site and it has been “spirited”—that is good, in my opinion, and really should serve to teach “newbies” that follow the conversation that there is more than 1 way to skin a cat.

We know that some investors have strong opinions on how to invest, while personally we are very open to all sorts of methods–really we are open to “whatever works”.

Talking about “flipping” and “dividend captures” helps to share different methods of individuals. Personally I like to “buy and hold”–on the other hand I like to have some dry powder available and utilizing that dry powder from time to time to add a little to the portfolio is just fine–as we all know, it works until it doesn’t (i.e. Ashford Hospitality – AHT – worked for years and now really didn’t work).

This year we have probably executed 30 different captures and flips–all but 3-4 worked well and the 3-4 that didn’t work were only mildly negative. We hold a Colony Northstar issue now that is off about $100 net on a dividend capture attempt–so they don’t all work.

Civil disagreement on the site is good–let’s just keep it civil and accept that there are all types of opinions–and none are right or wrong.

24 thoughts on “Spirited Conversation on Site”

    1. Level II for MTB-C shows only 10 shares traded at $1125 at 1:09 pm EST.
      Someone got hosed there..

    2. Whoa… had to check my account to make sure that wasn’t me…. it wasn’t. I’ve not had success picking those up at my price. I did get 20 of SLMNP today though. That probably ends my purchases until there is a dislocation.

      1. Mrinprophet, I wish I had known you were looking to buy SLMNP, I would have twisted your arm to have you paid the $1040 ask yesterday as you would have captured the $15 divi….It was exD today so divi went to person who owned at market open. But my first small original purchase was higher than todays price to get the thing unlocked though.

        1. As my kids say… OOF! I messed that up…and clearly illustrates I’m a noob. Was so worried about the MTB limit order that I miscalculated the ex-div date….. from the thrill of victory to the agony of defeat. Lesson learned.

          1. Im sorry Mrinprophet. I suspected that happened. ExD date is the death date. You need to buy the day before. But, if its a long term hold its not really a big deal.

          2. Don’t feel too bad, happens to all of us at one time or another. I’ve been caught like that couple times as well.

            But now you’ve been burned, you’ll be far more careful. On my trading platform, 2 of the columns on my streaming spreadsheet are XD date and Payment Date. I find them to be useful – very much so, for avoiding the XD messup like what you experienced.

    3. Anyone wanting to pay $1125 can buy mine. You get a lot of funky trades through the NDDs. Don’t always take them as the market price.

  1. I found this article today on Fannie and Freddie preferred:

    https://www.marketwatch.com/story/fannie-freddie-overhaul-could-mean-windfall-for-preferred-stock-analyst-says-2019-07-12

    and this list of their preferred stock (I did not see these on Tim’s list, but I did not spend a lot of time on this – am doing this at lunch on my job)

    http://www.timelessinvestor.com/2017/12/19/comprehensive-list-of-preferred-stocks-of-fnma-and-fmcc/

    What do people think of this?

  2. Sorry to hear that I am not the only one holding CLNY. I am off about $200 net of dividend capture on a 3/4 position (but, we are kidding ourselves by excluding the loss of opportunity costs). Currently planning to hold because the revenue numbers don’t look so bad. Tim, I am interested in your further comments on holding vs selling CLNY.

    1. An activist group is taking a position in CNS expcting to make positive changes. It was in yesterday’s financial news.

      1. I am adding to my post. The name of the activist group is Blackwell’s Capital . They are taking 3 director positions and forming a ‘review committee’ to
        determine the best way forward for the Reit. ( They have NOT taken shares to the best of my knowledge ). Others can dig in further if interested. I have one preferred holding in this Reit but pay no attention to it as I will hold until it is called or longer.

    2. LarryL–I will hold for a few weeks or a month then probably book the loss if necessary. If shares were to pop 25 or 50 cents I would be out–near breakeven. They release earnings 8/9–I will likely be out by then, but this may be a boost to the shares (or of course a hinderance).

  3. Thanks for your guidance and reminder. And I know this entire community is appreciative of the very valuable site, which you share for free and is the product of your hard work. I’ve learned a lot from both you and others. We want to keep it that way. I want to hear different views, and the strongest arguments supporting another view. The market can be the arbiter. I sometimes have questions that don’t fit a current topic, but also don’t rise to the level of a “Reader Initiated Alert”. (Just today I was thinking of asking for opinions on some of the BBT preferred stocks, particularly in comparison to the SunTrust preferred, and how they might all look post merger.) It might be nice to add something under Additional Links for general advice and discussion. The dividend capture discussion could go there. The Canadian Discussion has been helpful that way. Thanks for everything.

    1. Roger–yes I have lots of ideas–just not time to implement right now. When I can extract myself from “real work” I will do lots of stuff to the site.

  4. Tim, regarding the ones that are not working, e.g. Colony Northstar, do you do more DD and see if continuing to hold makes sense, or just sell now and cut the losses.

    1. Leonard—I will do a little but like I will hold it for a while and then book the loss if necessary–I have no problem booking losses. My lesson is (and I already knew this one) is that you need to stick to more solid companies for short term gains. CLNY is very large, but not highly respected.

  5. Speaking of CLNY, Tim, I hold the CLNY-B. This thing can’t get out of its own way. Thoughts?

    They really need to turn around the earnings. Revenues don’t look scary from what I saw, but the earnings have declined for several years now. Perhaps this bears some action and not just watching on my part, but there are now some activists getting involved so we’ll see how that goes.

    1. Affinity–I have the G issue–thought I could sneak in and snag the 47 cent dividend. My thought, in general, is that CLNY is relatively safe, but management has done a poor job of operating a company with lots of potential–I haven’t done much DD on the issue lately.

      If I was a long term holder I would keep my position very small–of course I am pretty conservative (normally).

    2. I have CLNY-E which I believe I bought as Northstar Financial, and the name has changed at least twice. 8.75% coupon, its call date passed on 5/15 and it’s trading about 1% over par. Seems OK to me. Am I missing something?

      1. Bought both CLNY-B and CLNY-E a month or two ago. I think both are near or past call dates, with coupons higher than their other preferreds, and figured if they call it, great. If not, holding the 8.75% yield is not bad until they do call it.

Leave a Reply

Your email address will not be published. Required fields are marked *