Friday, April 17, 2009

Did Make a Slight Trim In AT & T TCs with a 50 share Sale of JZJ in Regular IRA/

For purposes of my allocation, I treat equity preferred securities as bonds even though they are classified by the companies as equity.   An equity preferred stock does not represent an equity interest in the business in my view but simply a claim to earnings sufficient to satisfy the coupon payment which is superior to that of a common stock holder.  So, in my retirement accounts, I lump securities like AEB, INZ, ISF, AEH, and METPRA with the bonds rather than the common stocks for purposes of maintaining my target allocation between stocks and bonds. 

I am going to keep my entire position in  JZE and JZJ in the taxable account, which is the bulk of my position, but I elected today to sell 50 JZJ in my regular IRA account at $21.85 which was bought in October at close to $16.  I ran out of money in that account and I wanted to buy a floater on an opportunistic basis. TRUST CERTIFICATES JZJ AND PJL  It was virtually unchanged today in price and I believe that it goes ex in May. 


  I am not a financial advisor but an individual investor trying to navigate my way through a difficult market. I have never worked for a financial institution and never will.  In these posts, I am acting as an unpaid financial journalist and an occasional political commentator.   I am also aggregating financial news stories that I view as important and providing any reader of these posts, assuming there are more than a couple, with links to those articles, sort of a filtered, somewhat intelligent, free search engine.  Any discussion made by me of particular securities  is not a recommendation to buy or to sell.  Trade at your own risk.  Consult with your financial advisor prior to making any purchase or sale. I will try to identify my sales too but it may take a few minutes after I implement them to create a post explaining my reasons.  The sale may before or after the post.  Before buying or selling any stock, even one recommended by a trusted financial advisor,  please research it and make up your own mind which is what I always try to do.  Research would include reading reports, reviewing financial records, earnings estimates, sec filings and prior earnings releases and news.  In this post, and all others by me, I am merely describing my reasons for purchasing  or selling securities, and the potential pitfalls that I identified prior to purchase or the reasons for a sale.  The securities mentioned in this and all posts written by me may not be suitable for others based on their unique financial position and risk profile.  By way of example, it is unlikely that I will ever need the funds contained in my retirement accounts. Always read the prospectus before buying a Trust Certificate, bond, preferred stock or other bond or bond like investments.  Information contained in my posts has been obtained from sources believed to be reliable but cannot be guaranteed.  It is always important to follow the investment process. These posts by me do not constitute investment advice, nor shall they be construed as a guarantee of future results, or as an offer of any transaction in securities.   All content in these posts is provided for informational and entertainment purposes only, and it is a form of entertainment for me. 

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