ABB, D, EAI, ETSY, FLBR, GTY, KIO, KPTI, KREF, LUMN, MNRPRC, NCZ, QYLD, PYPL, REYN,

Economy: 

Businesses created 475,000 new U.S. jobs in February, ADP says - MarketWatch; ADP February 2022: Companies added 475,000 jobs in February, better than expected (consensus at 400,000; January revised from -301K to +509K, hardly inspiring confidence in either number)

Through January 2022, the PCE price index increased by 6.1% with the core up 5.2%. The personal savings rate was 6.4%. Consumer spending increased 2.1% in January. 

Personal Income and Outlays, January 2022 

ISM Manufacturing Survey - February 2022 PMI was reported at 58.6%, up from 57.6% in January. The new orders component rose to 61.7 from 57.9. The price component was 75.6.  

Overall, the U.S. economic numbers continue to be good. 

New Research Points to Wuhan Market as Pandemic Origin - The New York Times

++++

Markets and Market Commentary: 

Russia’s credit rating cut to junk by S&P - MarketWatch; Russia's credit rating cut to junk by Moody's and Fitch - MarketWatch

Russian Stocks Are Nearly Worthless as Ukraine Sanctions Bite | Barron's

Russia tries to stop Western companies fleeing the country

The war in Ukraine has made Russian assets toxic-CNN Business And they should be toxic waste for all western investors and companies. 

MSCI says Russian markets are 'uninvestable'; indexes reclassified from 'emerging' to 'standalone' - MarketWatch

++++

Earnings Reports-Owned Stocks: 

AMC Networks (AMCX) SEC Filed Press Release (GAAP E.P.S. at $.39, adjusted to $.54; consensus at $.231 per Fidelity; revenues up 3% to $803.709M; free cash flow at $72.379M; 2021 adjusted E.P.S. at $9.62 with GAAP at $5.77; ended 2021 with over 9M subscribers to its streaming service AMC+) 

American Electric Power (AEP) SEC Filed Press Release (GAAP net income of $538.9M or $1.07 per share; non-GAAP E.P.S. at $.98 with the consensus at $.934 per Fidelity; revenues at $4.1B, up from $3.6B in the 2020 4th quarter; raised 2022 non-GAAP E.P.S. guidance to $4.87 to $5.07 per share; revenues for 2021 at $16.8B)  

Blackrock TCP Capital (TCPC) SEC Filed Press Release (Net investment income of $17.6M or $.31 per share with the consensus at $.318 per Fidelity; net asset value per share  = $14.36, up from $13.24 as of 12/31/20; as of 12/31/21, "loans on non-accrual status represented 0.9% of the portfolio at fair value and 1.7% at cost"; "As of December 31, 2021, our investment portfolio consisted of debt and equity positions in 115 portfolio companies with a total fair value of approximately $1.8 billion, 89% of which was senior secured debt. 75% of the total portfolio was first lien. Equity positions, which include equity interests in diversified portfolios of debt and lease assets, represented approximately 11% of the portfolio. 95% of our debt investments were floating rate, 92% of which had interest rate floors"; "As of December 31, 2021, the weighted average annual effective yield of our debt portfolio was approximately 9.2%(1) and the weighted average annual effective yield of our total portfolio was approximately 8.7%, compared with 9.4% and 8.8%, respectively, as of September 30, 2021. Debt investments in three portfolio companies were on non-accrual status as of December 31, 2021, representing 0.9% of the portfolio at fair value and 1.7% at cost"; Board declared regular quarterly dividend of $.30 per share)

Cisco (CSCO) SEC Filed Press Release (This report was for the 2022 second fiscal quarter ending on 1/29/22; GAAP E.P.S. at $.71; Non-GAAP E.P.S. at $.84, up 6% y-0-y- with the consensus at $.809 per Fidelity; guides fiscal 2022 to non-GAAP E.P.S. $3.41 to $3.46 with 5.5% to 6% revenue growth compared to fiscal 2021; Board increased the dividend by 1 cent per share to $.38 per share; Board authorized a $15B increase in share repurchases; cash and cash equivalents at $21.1B)  

Consolidated Edison (ED) SEC Filed Press Release (GAAP net income of $224M or $.63 per share; non-GAAP E.P.S. at $1; guides 2022 adjusted E.P.S. to $4.40 to $4.60; "Adjusted earnings and adjusted earnings per share in 2021 exclude the impact of impairment losses related to Con Edison's investments in Stagecoach Gas Services LLC (Stagecoach) and Honeoye Storage Corporation (Honeoye) and the loss from the sale of a renewable electric project. Adjusted earnings and adjusted earnings per share in 2021 and 2020 exclude the impact of the impairment losses related to Con Edison's investment in Mountain Valley Pipeline, LLC (MVP), the effects of hypothetical liquidation at book value (HLBV) accounting for tax equity investments in certain renewable and sustainable electric projects of Con Edison Clean Energy Businesses, Inc. (the Clean Energy Businesses) and the net mark-to-market effects of the Clean Energy Businesses. Adjusted earnings and adjusted earnings per share in 2021 exclude the tax impact on the parent company of HLBV accounting and mark-to-market effects of the Clean Energy Businesses; I view the number of adjustments to GAAP unfavorably and will probably sell my few remaining shares later this year, provided the price is between $85 to $90). 

CubeSmart (CUBE) SEC Filed Press Release (FFO of $126.4M or $.58 per share, up from $.47 in the 2020 4th quarter; "Increased same-store (506 stores) net operating income (“NOI”) 20.6% year over year, driven by 15.8% revenue growth and a 4.2% increase in property operating expenses"; "Same-store occupancy during the quarter averaged 93.8% and ended the quarter at 93.3%"; "Increased the quarterly dividend 26.5% to an annualized rate of $1.72 per common share from the previous annualized rate of $1.36 per common share"; "Added 31 stores to our third-party management platform during the quarter, bringing our total third-party managed store count to 651")

Enbridge (ENB) SEC Filed Press Release (all amounts are in Canadian dollars; GAAP net income  of $1.84B or $.9 pers share, adjusted to $.68; distributable cash flow at $2.487B, up from $2.209B in the 2020 4th quarter; 4th quarter DCF per share at $1.23, up from $1.09 in the 2020 4th quarter;  "DCF for the year ended December 31, 2021 was $10.0 billion, an increase of $601 million over 2020"; 2021 DCF per share at $4.96, up from $4.67 in the 2020 4th quarter; "The Company reaffirms its 2022 financial guidance, announced in December, which included adjusted EBITDA between $15.0 and $15.6 billion and DCF per share between $5.20 to $5.50.") For dividend coverage, I view the DCF number as the most important one. Pipelines have huge non-cash depreciation expenses. 

Entergy (ETR) SEC Filed Press Release (Non-GAAP E.P.S. at $.76, with the consensus at $.699 per Fidelity; GAAP E.P.S. at $1.59; for 2021, ETR reported GAAP earnings of $1.118B or $5.54 per share and non-GAAP income of $1.205B or $6.02 per share; 2022 non-GAAP E.P.S. guidance of $6.15 to $6.45)

Evergy (EVRG) SEC Filed Press Release (4th Q. non-GAAP E.P.S. at $.16 in line with consensus; 2021 GAAP E.P.S reported at $3.83, up from $2,72 in 2020; 2021 non-GAAP E.P.S. at $3.54, up from $3.1 in 2020; reaffirmed 2022 E.P.S. guidance of $3.43 to $3.63; declared regular quarterly dividend of $.5725 per share)

Global Net Lease (GNL) SEC Filed Press Release (GNL is an externally managed net lease REIT; AFFO per share at $.44 with the quarterly dividend at $.40; revenue up 22.4% to $106.516M; as of 12/31/21, GNL's portfolio consisted of 309 net lease properties, 99% leased, with a weighted average lease term of 8.3 years)

Iron Mountain (IRM) SEC Filed Press Release (AFFO per share at $.92, up from $.62 in the 2020 4th quarter; 2021 AFFO per share at $3.48; guides 2022 AFFO per share to $3.70 to $3.82; revenues in the 2021 4th quarter up 9.4% to $1.159+B) 

Kraft Heinz Company (KHC) SEC Filed Press Release (GAAP E.P.S. at -$.21; non-GAAP E.P.S. at $.79 with the consensus at $.629 per Fidelity; organic net sales increased 3.9% vs. the prior year quarter; company expects organic net sales to increase in the low single digits)

Plymouth Industrial REIT (PLYM) SEC Filing (Core FFO per share = $.46; AFFO per share at $.39; the primary deduction from FFO is $2.04M in recurring capital expenditures which is an appropriate deduction from FFO; non-cash revenue of $974K created by the straight line accounting convention is also deducted from FFO;  both deductions are in compliance with NAREIT's AFFO definition which in this instance also means cash available for distribution) 

TCG BDC (CGBD) SEC Filed Press Release (net investment income per share available to common shareholders  $.40, in line with the consensus; net asset value per share at $16.91, up from $16.65 as of 9/30/21; the Board declared the regular quarterly dividend of $.32 per share and a special dividend of $.08 per share) 

Williams (WMB) SEC Filed Press Release (GAAP net income of $621M or $.51 per share, adjusted to $476M or $.39 per share with the consensus on that basis at $.341 per Fidelity; AFFO at $1.045B, up 6%; dividend coverage using AFFO at 2.1 x; 2021 revenues at $10.627B, up from $7.719B in 2020; 2022 AFFO per share guidance at $3.4 to $3.7)

+++

After calling Putin a genius for declaring part of Ukraine's territory "independent" countries, Putin's soulmate, the unchallengeable leader of the republican party, praised Bloody Vlad for invading Ukraine, calling it a "pretty smart" move. Donald Trump praises 'pretty smart' Vladimir Putin for Russia's Ukraine invasion-MarketWatch; Trump praises "very smart" Putin for invading Ukraine 

No doubt Putin's invasion was a "smart" move in the Alternate Reality inhabited by the "extremely stable genius". Trump 'I'm an extremely stable genius'- POLITICO In that world, everything is turned upside down. 

Perhaps Doofus Don did not get the memo that it was no longer fashionable, even among republicans, to praise Putin's military aggression and his dictatorial powers that suppress any dissent by murder, intimidation and imprisonment.  

Trump Defends his Praise of Putin, hints he will run for president in 2024 - The Washington Post

Fox "news" has not gotten that memo either. Jon Stewart rips Trump/Fox support for Putin and calls it 'F*cking bonkers' | Daily Mail Online 

Fox "news" is populated by Putin's "useful idiots".” Putin's Useful Idiots - The Atlantic The only reporter left at Fox "news" is Jennifer Griffin. Fox News's Jennifer Griffin accuses Fox pundits of Putin 'appeasement' and 'extremely dangerous talk' - The Washington Post  

As Russia Attacked Ukraine, Fox News Decided It Was a Great Time to Hear From Donald Trump | Vanity Fair

John Bolton: Trump Is a Putin-Loving Moron Who Thought Finland Was Part of Russia | Vanity Fair

Another republican with a Putin infatuation is Mike Pompeo, who had these kind words for Vlad: “I consider him an elegantly sophisticated counterpart and one who is not reckless but has always done the math.” In January, he said, “He is a very talented statesman. He has lots of gifts … He knows how to use power. We should respect that. Pompeo also praised Putin 0n 2/18/22 as being "very savvy" and "very shrewd". Just gushing in admiration for a dictator. Former Secretary of State Mike Pompeo on Nuclear Deterrence, C-SPAN.org (2/18/22 interview, starting at 23 minutes) Pompeo's praise is being used on Putin TV in Russia. 

China blames the US as Russia's war breaks out in Europe | CNN In an upside down world, where true is false and false is true, Russia is not responsible for invading Ukraine.  Dictators can not be shamed for making outrageous claims and arguments. China refuses to call the invasion of Ukraine by its authoritarian ally an invasion. China also abstained from condemning the attack in the U.N. Security Council. 

Why the Chinese Internet Is Cheering Russia’s Invasion - The New York Times

China reportedly requested that Vlad delay his invasion until after the Winter Olympic games ended. China asked Russia to delay invasion until end of Olympics: report | TheHill China has stated that it will not implement any sanctions against its ally Russia. 

Shortly before the invasion started, China and Russia issued a 5,000 word statement stating that their partnership had "no limits"and asseting they will establish a new global order with true "democracy". China Asked Russia to Delay Ukraine War Until After Olympics, Biden Officials Say - The New York Times

Putin puts Russia's nuclear forces on high alert as fighting in Ukraine continues - CBS News (2/27/22) That is Vlad's second nuclear war threat since he launched the invasion. If he carried through with the threat, he would no longer have to worry about uniting the Slavic nations under Russian rule for an obvious reason. Almost everyone, if not everyone, now existing will have no further worries. 

The Biden Administration referred to this Russian nuclear threat as part of Putin's pattern to manufacture "threats that don't exist in order to justify further aggression". That was well put. Russia has been, is now, and will continue to be a pariah nation and a clear danger to world peace. 

Russia's Lavrov reportedly says third world war would be 'nuclear and destructive' - MarketWatch Russia's general approach now is to threaten the world with destruction unless the U.S. and other western democracies accept Russia's military aggression and conquests of neighboring countries with barely a whimper of opposition.  

Russian citizens are about to become residents in a psychopath's prison with an economy in shambles. Many have recognized that there is no place in Russia for them and are fleeing to Helsinki by train.  A War the Kremlin Tried to Disguise Becomes a Hard Reality for Russians - The New York Times (noting that Russia's "parliament" is  advancing a bill that would give anyone a 15 year prison sentence for posting "fakes" about the war, and the Russian Education Ministry released a video to be shown in Russian schools describing Russia as "liberators"). 

The Kremlin is rapidly shutting down any Russian website that provides accurate information about its invasion, including anyone who dares call the invasion an invasion. Russia is using force to grab territory, and there is no other reason for its invasion. 

The Nazis are not in Ukraine, as the Kremlin claims, but occupy the highest levels of Russia's government with Putin as the Führer.   

If the war ends in the occupation of Ukraine, there will not be any respite from the sanctions, and NATO nations will vastly increase defense spending and deployments on the Russian, Ukraine and Belarus borders. 

To keep a puppet government, Russia will need to maintain a large military force who will become targets and occupants of body bags, just one legacy Putin will give Mother Russia which some Russian citizens may not view as much of a gift.  

Putin has caused a massive change in Germany's perception of Russia. Europe’s Sleeping Giant Awakens - The Atlantic

Putin’s rule depends on creating foreign enemies-and domestic ‘traitors’ - The Washington Post Ultimately, it is really about keeping Russia's Kleptocracy, controlled by its primary beneficiary, in power. Putin knows his NATO bogeyman is a false narrative sold to the Russian public through Putin controlled media outlets who are incapable of telling the truth. Our last President falls into that category as well.  

NATO has no intention of invading Russia, of course, but exists only to deter Russia's military aggression which is currently on display in Ukraine. If Russia attacks one member, it will be considered an attack against all. That's it and nothing more.     

Russian strike on Kyiv TV tower kills 5 and damages Holocaust memorial Russia will continue and will soon expand its slaughter of civilians irrespective of the consequences. The refugee crisis is the largest since WWII with over 800,000 Ukrainians fleeing Russia's invasion into neighboring countries.

Cluster and vacuum weapons: What are the munitions Russia has been accused of using in Ukraine? - The Washington Post Russia uses those weapons to murder civilians and to terrorize them. Russia is moving weapons banned by the Geneva Convention, including cluster munitions and vacuum bombs, into the battleground areas. 

Russian oligarchs move yachts as U.S. looks to 'hunt down' and freeze assets

France seizes superyacht linked to Russia's Sechin

How much is Vladimir Putin worth? Almost no one knows for sure | CNN Business One estimate is that he has a $200B net worth, which would not originate from his salary.   

Apple Halts Sales in Russia, Restricts Russian News Sites | Barron's

Exxon is quitting its last Russian project 

Shell follows BP out of Russia as oil companies abandon Putin 

Diplomats walk out on Russian foreign minister's speech; Diplomats Walk Out of Lavrov’s U.N. Speech - The New York Times Lavrov is incapable of being truthful.  

Russia has now threatened Finland and Sweden if they join NATO, which they need to do pronto. Russia Issues Ominous Warning to Finland, Sweden Should They Join NATO The 3 Baltic states are far more at risk from a Russian invasion than Finland IMO since they were part of the Soviet Union and are strategically located. 

U.N. General Assembly vote sends clear message to Russia: The world is against the war in Ukraine - CBS News Only 4 Russian allies voted against the resolution: Syria, North Korea, Belarus and Eritrea. United Nations General Assembly condemns Russia's Ukraine invasion 141 votes in favor- The Jerusalem Post Belarus is no longer an independent country and might as well be absorbed into Russia. Eritrea is an "extraordinary repressive" 1 man dictatorship that subjects its population to widespread forced labor.  Eritrea-Human Rights Watch Most nations would be embarrassed to be in that company but not Russia. 

1 RUB to USD - Russian Rubles to US Dollars Exchange Rate It is obvious that Putin has been a disaster for Russia and its economy. The RUB is now trading at less than $.01, close to $.0089.  

Russian assets that are priced in a near worthless currency, including Russian stocks and bonds, reflect the value of its near worthless currency. Gazprom, Lukoil and Sberbank are now penny stocks as Russian companies collapse in London - MarketWatch  

Texas Republican Van Taylor drops re-election bid after affair with woman once married to IS leader  Van Taylor was going to be in a runoff with another republican. He won with 55.2% of the vote in 2020.  

++++ 

1. MNRPRC Issuer Redemption at $25 Par Value: 

I owned 80 shares: 

The coupon was 6.125% paid on a $25 par value. This redemption was required by the merger agreement with Industrial Logistics Properties Trust  (ILPT) 

Monmouth Shareholders Approve Acquisition by ILPT

Profit Snapshot: +$301.52

Investment Category: Advantages and Disadvantages of Equity REIT Cumulative Equity Preferred Stocks, part of Equity REIT Common and Preferred Stock Basket Strategy

Last Buy Discussions: Item # 4.B. Added 10 MNRPRC 20.46; 10 at $18; 10 at $15.31 (5/9/20 Post); Item # 3.B. Bought 50 MNRPRC at $23.12 (12/16/18 Post) 

Previous Sell Discussions:  Item # 2.B. Sold 100 MNRPRC at $25.1-Used Commission Free Trade (10/2/19 Post)(profit snapshot = $76.24)-Item # 2 Bought 100 MNRPC at $24.34-Used Commission Free Trade (6/23/19 Post); Item 5.A. Sold 100 MNRPRC at $24.85 (1/21/17 Post)(profit snapshot = $71.93); Item # 1.D. Sold 50 MNRPRC at $24.57  (2/20/19 Post)(profit snapshot = $23.75)

MNRPRC Realized Gains: $473.44

2. Small Ball: 

A. Bought 10 ABB at $34.78: 

Quotes:  

USD: ABB Ltd. ADR 

Swiss Franc: ABB Ltd.   (Switzerland: SWX ) 

ADR Ratio 1 for 1

Swiss Franc to US Dollar Exchange Rate Chart | Xe

The Swiss National Bank launched a Jihad against its own currency in 2011 which is now in its second decade. 

This is a new name for me. The company is headquartered in Zurich, Switzerland. 

ABB Analyst Estimates | MarketWatch (as of 2/25/22, the consensus E.P.S. is at $1.59 in 2022; $1.80 in 2023; and $1.97 in 2024). 

Investors — ABB Group

ABB products and services A - Z index

ABB Factsheet 2/11/22.pdf

ABB Ltd Profile | Reuters

ABB Ltd Key Developments | Reuters

ABB Ltd Key Metrics | Reuters

ABB is a top 10 holding in the Robotics & Artificial Intelligence ETF (BOTZ) that I own. 

Dividend: Annually, currently at CHF .82 per share, subject to Switzerland's withholding tax.  The dividend was increased from CHF .80 paid in 2021. 

Dividend information — ABB Group

Ex Dividend Date: 3/28/22

Last Earnings Report (Q/E 12/31/21): Q4 2021 results | ABB

Maximum Position: 100 shares, and each subsequent purchase will be in 5 share lots that must reduce my average cost per share. 

B. Added 5 KIO at $15.22; 5 at $15.06- Fidelity Taxable:

Quote: KKR Income Opportunities Fund Overview - A CEF

KIO - CEF Connect 

KIO SEC Filings

SEC Filed Annual Report for the F/Y Ending 10/31/21 

Credit Quality: Deep into Junk!

Sponsor's Website: KIO | KKR Funds

Leveraged: Yes, see pages 28-29 of the preceding linked annual report for details

Investment Category: Monthly Income Generation 

Last Buy Discussion: Item # 1.F. Started KIO - Bought 10 at $15.75 (4/1/21 Post) 

Average Cost per share this account: $15.32  (20 shares)

Dividend: Monthly at $.105 per share ($1.26 annually)

Yield at AC =  8.22%, rounded down

Next Ex Dividend: 3/10/22

C. Added 5 QYLD  at $20.6; 5 at $20.05-Schwab Account: 

Quote:  Global X NASDAQ-100 Covered Call ETF Overview

Sponsor's website: Nasdaq 100 Covered Call ETF

Investment Category: Monthly Income Generation

Last Buy Discussions: Item # 2.E. Added to QYLD in Fidelity Account- Bought 5 at $22.63; 5 at $21.79 (1/13/22 Post); Item # 1.C. Added to QYLD-Bought 5 at $21.46; 5 at $20.49 -Schwab Taxable (10/30/20 Post); Item # 1.B. Bought 5 QYLD at $20.73 - Fidelity Taxable (7/11/20 Post)

Global X NASDAQ 100 Covered Call ETF (QYLD)-Morningstar (currently rated 4 stars)

Average cost per share this account: $20.81 (31+ shares)

I am currently reinvesting the dividend in this account. 

Dividends: Monthly at a variable rate

In 2021, the fund paid  a $.499 per share dividend sourced from short term capital gains and $2.35 per share in regular dividends.   

Yield at AC: 11.29% This calculation is based on the $2.35 per share paid in 2021 which excludes that short term capital gain distribution. 

D. Eliminated D in Schwab Account- Sold 4+ at $80.59: 

Quote: Dominion Energy Inc

Dominion Energy Inc Profile | Reuters

SEC Filings

2021 SEC Filed Annual Report 

Investor Relations | Dominion Energy

Investment Category: Bond Substitute 

Profit Snapshot: +$36.05

Last Buy Discussions: Item # 2.M. Added 2 D at $71.02 - Fidelity Taxable (12/22/21 Post); Item # 1.E. Added to D in Fidelity Account - Bought 1 at $72.79 (11/11/21 Post); Item # 3.H. Bought 2 D at $75.65; 1 at $75.19; 2 at 74.75-Vanguard Taxable (8/20/21 Post); Item # 1.E. Restarted D-Bought 4 at an AC of $71.64 (4/1/2021 Post); Item # 1.D. Added 1 D at $73.8, 1 at $71.96; 1 at $71; 1 at $68.53; 1 at $68 and 1 at $60.6 (4/18/20 Post); 

Dividend: Quarterly at $.63 per share

Dividends & Splits | Dominion Energy

Last Ex Dividend: 12/2/21 (owned as of) 

Last Earnings Report (Q/E 12/31/21): SEC Filed Press Release

GAAP E.P.S. at $1.63

Non-GAAP at $.90

Non-GAAP net income of $752M

Consensus at $.909 per Fidelity 

Guides 2022 non-GAAP E.P.S. to $3.95 to $4.25 

Guides non-GAAP E.P.S. for the 1st Q 2022 to $1.10 to $1.25

Last Sell Discussions: Item # 3.E. Pared D-Sold 2 at $80.23, 2 at $80.24 (5/14/21 Post); Item # 1.D. Eliminated D-Sold 3 at $74.04 (8/8/20 Post); Item #1.D. Sold 13 D at $78.17 (6/20/20 Post)

My general trading pattern going forward will be to consider selling in the $80 to $85 range and to consider buying at below $70. I still own a few shares.  

E. Added 3 REYN at $28.19-Fidelity Taxable Account: 

Quote: Reynolds Consumer Products Inc. (REYN)

REYN Analyst Estimates | MarketWatch

SEC Filings

Brands The main brands are Reynolds Wrap and Hefty trash bags. 

Last Buy discussions: Item # 2.N. Added to REYN in Fidelity Account-Bought 2 at $27.18 (11/5/21 Post); Item # 2.O. Adeed to REYN in Schwab Taxable-Bought 4 at $27.5; 5 at $27.3 (3/6/21 Post); Item # 1.Q. Added to REYN-Bought 2 at $27.9; 2 at $27.67 (2/27/21 Post)

Average cost per share this account: $29.1 (30+ Shares) 

Snapshot Intraday on 2/9/22 after add

Dividend: Quarterly at $.23 per share ($.92 annually)

REYN Dividend History | Nasdaq

Yield at AC = 3.16%

Last Ex Dividend: 2/11/22 (owned all as of)

Last Earnings Report (Q/E 12/31/21): Reynolds Consumer Products (REYN) SEC Filed Press Release  

Adjusted net income of $107M or $.51 per share on a 13% Y-O-Y revenue increase; 

GAAP E.P.S. at $.50; 

Consensus at $.488 per share; 

For 2021, adjusted E.P.S. was at $1.59 with revenues at $3.556B, up 9%; "Company estimates 2022 cost pressures of nearly $400 million.  Rates for resin and aluminum are assumed to be stable by comparison to current levels." (emphasis added)  

"Company expects 10% to 14% revenue growth for the 2022 first quarter, driven primarily by price increases."; 

Guidance for 2022: revenue growth of 9 to 12%, adjusted E.P.S. $1.56 to $1.7 based adjusted net income of $327M to $357M.

F. Bought 50 of NCZ at $4.68; 10 at $4.47; 10 at $4.28: 

Quote: Virtus AllianzGI Convertible & Income Fund II Overview - A CEF

Investment Category: Monthly Income Generation 

NCZ SEC Filings 

Sponsor's website: Virtus AllianzGI Convertible & Income Fund II ("Invests in a diversified portfolio of domestic convertible securities and high-yield bonds rated below investment grade"; as of 12/31/21, the weightings were 63.94% convertible securities, 30.86% in junk bonds and 4.24% in cash)

Virtus AllianzGI Convertible & Income Fund II (last SEC filed shareholder report for the semi-annual period ending 8/31/21) This report contains information on other CEFs. The NCZ holdings and other information starts at page 50)

Leveraged: Yes and at a very high level. Leverage is through a 5.5% cumulative preferred stock, see note 9 at page 100 (Virtus AllianzGI Convertible & Income Fund II 5.5% Cumulative Preferred Series A Stock) and auction rate preferred stock which, as of 2/18/22, had a maximum rate of .16%. 

The auction rate preferred coupon will increase with short term rates.  

 

Auction rate preferred securities turned into a really bad investment for investors who bought them.  The yields are low and the owners can not sell them at auction since no one is bidding on them. Auction Rate Securities | Investor.gov; The ARS Debacle: The Forgotten Crisis of 2008 | CFA Institute Enterprising Investor I never considered the possibility of even considering a purchase. 

Total Holdings as of 1/31/22: 276 

Average cost per share share:  $4.59 (70 shares)

Net Asset value per share as of 2/24/22: $4.74

Dividends: Monthly at $.0375 per share ($.45 annually)

NCZ Dividend History | Nasdaq

Significant ROC support. See, NCZ - CEF Connect (click "Distributions" tab)

The only way for this CEF to cover the dividend is through capital gains. 

Yield at AC : 9.8%

Next Ex Dividend: 3/10/22

Maximum Position: 200 shares 

G. Added 10 EAI at $24.87 in Schwab Account:

Quote: Entergy Arkansas 1st Mortgage Bonds 4.875% due 2066 (EAI)

Issuer: Wholly owned subsidiary of Entergy Corp. (ETR) 

Investment Category: Income Generation with a First Mortgage Baby Bond, part of the Exchange Traded Bond category. 

History this account: 

This was an average up from a purchase made in March 2020.  

I mentioned this purchase in a 2/11/2022 comment. 

Average cost EAI position in this account: $22.65 (20 shares)

Yield at AC = 5.38%

Last Ex Interest Date: 2/25/22 (owned all as of) 

Prospectus

First Mortgage Bond on substantially all assets
Par Value: $25
Optional Redemption Date: or or after 9/1/21
Maturity Date: 9/1/2066 unless redeemed earlier at issuer's option
Interest Rate Risk: Asymmetric in favor of issuer, created by a lack of a make whole provision. 

The bond is currently callable at its $25 par value plus accrued and unpaid interest. 

Buy Discussions: 

Item # 5.A. Bought 10 EAC at $20.43 (4/11/20 Post)  

Item # 2.B. Bought 50 EAI at $23.85- ROTH IRA account (6/20/2017)

I also own a $1K par value Entergy Arkansas First Mortgage bond that has a make whole provision. Item # 1.E. Bought 2 Entergy Arkansas 3.05% First Mortgage Bonds Maturing on 6/1/23 (5/17/17 Post); Bond Detail Unlike EAI the $1K par value bond traded in the bond market has a make whole provision but allows the issuer to redeem at par value within 3 months prior to maturity.  I have had a large number of $1K par value bonds redeemed early with make whole payments.  

The Entergy Arkansas First Mortgage bonds are currently rated A2 by Moody's (last affirmed in January 2022) and at A by S & P.  

I do not view the credit risk as material. The price may occasionally reflect some credit risk fears that are unfounded, which was the case in the Spring of 2020 when I bought 10 shares at $20.43. 

Interest rate risk exists and is potentially material. 

The interest rate risk that is tied to an issuer redemption is eliminated by buying the security at below par value. The risk is a loss on the shares when the shares are bought at a premium to par value and the issuer then calls at par.    

The far more important interest rate risk, price declines due to a persistent rise in interest rates, remains even after my purchase at below par value, and that risk is more of a concern now given the problematic inflation numbers. An aspect of that risk is what I call the risk of loss opportunity caused by having funds tied up in a bond losing value when the funds could be used to buying a higher yielding one.  

Previous Sell Discussions: 

Item # 4.B. Sold 30 EAI at $24.7-Used Commission Free Trade (5/18/19 Post)(profit snapshot =$50.21)-Item # 5.A. Bought 10 EAI at $21.73-Used Commission Free Trade (12/16/18 Post), Item # 3 Bought 20 EAI at $23.68 - Used Commission Free Trade (10/7/18 Post)

Item # 4.B. Sold 30 EAI at $24.73-Used Commission Free Trade  (3/17/19 Post)-(profit Snapshot= 17.36)-Item # 4.A. Bought 30 EAI at $24.12 (5/24/18 Post)

Item # 3.A. Sold 50 EAI at $24.84 (8/16/17 Post)(profit snapshot = $34.57)

EAI Trading Profits to Date: $102.14

Goal: Harvest interest payments and any profit on the shares. 

H. Multiple Small Ball Purchases of ETSY: 

Quote: ETSY

Each purchase was $50. The price for each purchase, when made, was at the lowest price in the chain. The lowest price was $116.39 (2/23/22) and the highest price was the first purchase at $145 on 2/9/22.

Price as of close on 3/2/22

I have been trading ETSY, so far successfully, in tiny odd lot as a form of entertainment. I will only be slightly embarrassed to sell the 2 highest cost fractional shares bought at over $140 at a profit soon.  

ETSY Analyst Estimates | MarketWatch

ETSY SEC Filings

ETSY 2021 SEC Filed Annual Report ("The Etsy, Reverb, Depop, and Elo7 marketplaces collectively connected a total of 7.5 million active sellers to 96.3 million active buyers as of December 31, 2021")

Average cost per share = $130.5 (3.442 shares)

Dividends: None and none expected

Last Buy Discussion: Item # 3.A. Bought 1 ETSY at $159.7 (6/4/21 Post)That lot was sold at $213 last January. Most trades have not been discussed here. Item # 1.B. Sold 1 ETSY at $213.2 (9/24/21 Post)(profit snapshot = $53.5) 

Last Earnings Report (Q/E 12/31/21): SEC Filed Press Release 

The stock rose +$20.78 or 16.21% in response to this report. I briefly discussed it in a 2/24/22 comment. 

Net income = $161.6M, up 8% Y-O-Y

E.P.S. =  $1.11 with the consensus at .$794 per Fidelity 

Revenues: $771.1M with the FactSet consensus at $685.4

Gross Merchandise Sales (GMS) = $4.2B with the consensus at  $4.07M

Other Data: 

One of the concerns about ETSY is that revenues and profits had only been temporarily boosted by the pandemic, particularly revenues generated by mask sales, and this report allayed some of those concerns with significant beats on revenues and profits. 

The GMS guidance, however, for the current quarter was slight lower than expected which caused several brokers to reduce their price targets.

"Etsy also announced today that its seller transaction fee is increasing from 5% to 6.5%. This fee change will go into effect on April 11, 2022."

2022 1st Quarter Guidance:

Analyst Reports Available to Schwab Customers: 

Morningstar (2/28/22): 4 stars with a FV of $211, wide moat. 

Argus (11/5/21): Hold

S & P (2/25/22): 3 stars with a 12 month PT of $170

I. Pared KREF-Sold 20 at $21.06: 

Quote: KKR Real Estate Finance Trust Inc.- Mortgage REIT that focuses primarily on originating and acquiring senior loans secured by commercial real estate.  

KREF SEC Filings

2021 Annual Report 

Last Discussed: Item # 1.H. Bought 10 KREF at $17.7; 10 at $17.58; 10 at $17.3 and 10 at $17.2 (2/20/21 Post) 

Profit Snapshot: +$66.38

Average Cost this Account after pare: $17.25 (20 shares): 

Snapshot Intraday on 2/9/22 after pare

Dividend: Quarterly at $.43 per share ($1.72 annually)

KREF Dividend History | Nasdaq

Yield at $17.25 = 9.97%

Last Ex Dividend: 12/30/21 (owned all as of)

Last Earnings Report (Q/E 12/31/21):  This pare was in response to this earnings report. SEC Filed Press Release 

Reported net income of $35.2M or $.59 per share. 

This is what I did not like: "Took title to one defaulted senior retail loan with an outstanding principal balance and net carrying value of $109.6 million and $69.3 million, respectively. Accordingly, the Company recognized an $8.2 million GAAP gain from reversal of the allowance for credit losses and recognized a $32.1 million realized loss on loan write-off through distributable earnings"

$8.2M of GAAP net income was an accounting entry resulting from a $32.1 realized loss. The charge was applied to distributable earnings which was reported at -$.05 per share. 

Claims a book value $19.37 per share. 

"In January 2022, the Company issued an additional 6,210,000 shares of 6.5% Series A Cumulative Redeemable Preferred Stock (the “Series A Preferred Stock”), which included the exercise of the underwriters' option to purchase additional shares of Series A Preferred Stock, and received net proceeds after underwriting discount and commission (inclusive of $1.5 million paid to KKR Capital Markets, a KKR affiliate, for its services as joint bookrunner) of $151.2 million." Quote:  KKR Real Estate Finance Trust Inc. 6.5% Pfd. Series A 

Goal: Any pre-ROC adjustment profit on the shares + dividends  

J. Added 2 THRY at $32; 1 at $29.35: 

Quote: Thryv Holdings Inc.

Investment Category: Lottery Ticket Basket

THRY Analyst Estimates | MarketWatch

SEC Filings

Website: Thryv: Small Business Software & End to End Management Platform

Thryv, Inc. - Investor Relations

Thryv Holdings Inc Profile | Reuters

Thryv Holdings Inc Key Metrics | Reuters

Last Discussed:  Item # 3.A. Bought 5 THRY at $35.95 (12/16/21 Post) I discussed the 2021 third quarter earnings report in that post. 

Average cost per share = $34.14 (8 shares) 

I am in a 1 or 2 share average down mode, with a maximum position at 20 shares. 

The next earnings report will be released on 3/10 before the market opens. 

I noticed that the B. Riley firm lowered its PT to $42 from $50 while keeping its buy rating. I do not have access to that report. 

K. Bought $50 PYPL at $119.2; $50 at $115.6; $50 at $112.61; $50 at $108.5; $50 at $105.5; $50 at $103: 

I mentioned in a recent post that I would not be buying PYPL after its earnings warning. What I am doing now is technically buying but is equivalent to doing nothing as a practical matter. 

Price as of close on 3/2/22

Quote: PayPal Holdings Inc. 

52 Week High at $310.16

Average cost per share: $109.71 

PYPL Analyst Estimates | MarketWatch

PYPL SEC Filings 

3 Year Overview Financial Metrics 2018-2021: 

E.P.S. was at $2.07 in 2019 and at $3.52 in 2021, but note the slight decline in 2021 compared to 2020. Those are GAAP numbers. 

Last Earnings Report (Q/E 12/31/21): SEC Filed Press Release 

2021 Non-GAAP E.P.S. was reported at $4.6, up 19% compared to 2020. 

Sourced: 2021 Annual Report 

Non-GAAP E.P.S. Consensus was at $1.12.

Investors were disappointed with the 2022 guidance. Revenue growth in 2022 was projected at 15-17%, lower than the prior estimate of 18%, with non-GAAP E.P.S. guidance of $4.6 to $4.75, close to flat compared to 2021. New active accounts are expected to increase by 15-20 million, down from 49M in 2021. The company cites a number of headwinds including Ebay's transition to its own payment network and more sluggish spending by lower income persons due to inflation and the lack of government stimulus money. 

I will probably continue averaging down with $50 purchases. Eventually, I will stop at some meaningless number of shares. 

Broker PT Downgrades: PYPL experience a rash of price target ("PT") downgrades in response to this earnings report. Ratings were generally unchanged at either buy or neutral. Examples include the following: 

UBS PT to $218 from $263; 

Truist PT to $130 from 200; 

BMO PT to $180 from $224; 

Bernstein PT to $140 from $180; 

Deutsche Bank PT to $200 from $260; 

Jeffries PT to $145 from $200 and then to $125; 

Oppenheimer PT to $190 from $206; 

Evercore PT to $245 from $342; 

Piper Sander PT $185 from $200; 

Susquehanna to $220 from $310. 

One of those brokers may even be within $20 to what actually happens given the revised PT range from $125 to $245. I do not have access to those reports but PTs generally cover the next 12 months.    

Broker Reports Available to Schwab Customers: 

Credit Suisse (2/2/22): Keeps outperform rating and lowers PT to $190 from $250, noting disappointing 2022 guidance. 

S & P (2/3/22): Maintains 3 star rating with an $186 PT.   

Argus (2/3/22): Buy but lowered PT to $150 from $310. Lowered estimated 2022 non-GAAP E.P.S. to $4.61 from $5.46 and initiated 2023 estimate at $5.34. 

Morningstar (2/22/22): 4 stars with a FV of $145

My general concern is that PayPal's early and highly successful entry into electronic payments will be eroded by competition (e.g. Apple Pay) So the high water mark of percentage year-over-year revenue growth may be behind the company. I also believe that concern is widespread among investors, and the last earnings report and guidance only confirmed that concern. 

L. Bought 5 FLBR at $20.02: 

Quote: Franklin FTSE Brazil ETF Overview 

Sponsor's Website: Franklin FTSE Brazil ETF - FLBR

Investment categories: Primarily Lottery Ticket Basket, secondarily possible Masochistic Contrarian Value

As of 2/21/22, the Sponsor claims that the TTM P/E was 6.64 with a price to book value at 1.77. 

Expense Ratio = .19%

Franklin FTSE Brazil ETF (FLBR) Quote - ARCX | Morningstar (currently rated at 2 stars)

Some Top Holdings as of 2/18/22: 

Dividends: Semi-Annually and Erratic 

Brazil is one of the emerging stock markets that most U.S. individual investors IMO need to ignore. I am still ignoring it with this 5 share purchase. 

Country and currency risks are just too high. 

The stocks owned by this ETF are priced in Brazilian Real and the ETF is priced in USDs.  The Real has declined considerably against the USD over the past 10 years. Brazilian Real to US Dollar Exchange Rate Chart | Xe The BRL/USD exchange rate was over .55 in 2012 and is now trading at .1988. The BRL has been in an uptrend, however, since 1/25/22. There is considerable currency risk in owning a USD priced ETF that owns stocks priced in BRLs. 

Historical performance of Brazil's stock market has been poor for a buy and hold investor, though there have been difficult to trade rallies. That market has experienced a rally this year,  with this ETF up 20.36% in price YTD through 3/2/22, but 2020 and 2021 experienced declines of -20.01% and -16.75% respectively. Franklin FTSE Brazil ETF (FLBR) Performance- Morningstar Those performance numbers suggest that a buy and hold strategy is just foolish. 

I decided to go with FLBR rather than the more liquid and older iShares MSCI Brazil ETF (EWZ) based on FLBR's lower expense ratio. The EWZ expense ratio is .57% compared to .19% for FLBR. iShares MSCI Brazil ETF | EWZ

M. Added 5 LUMN at $10.76; 5 at $10.35; 5 at $10.09; 5 at $9.65: 

Quote: Lumen Technologies Inc

LUMN Analyst Estimates | MarketWatch

LUMN SEC Filings

Website: Enterprise Technology for the Digital Revolution

Investment Categories: Bond Substitute/Lottery Ticket Basket 

The Lotto classification is due to LUMN's debt load. 

Last Discussed: Item # 1.C. Bought 10 LUMN at $11.72 (9/3/21 Post) 

Average cost per share:  $10.71 (30 shares)

Dividend: Quarterly at $.25 per share

Lumen Technologies declares quarterly cash dividend (2/24/22)

Yield at AC = 9.34%, rounded up. 

Next Ex Dividend: 3/7/22

Last Earnings Report (Q/E 12/31/21): SEC Filed Press Release 

GAAP E.P.S. at $.50

Non-GAAP E.P.S. at $.51, compared to $.42 in the 2020 4th quarter  

Consensus at $.533 per Fidelity

"Generated Free Cash Flow of $776 million for the fourth quarter 2021, compared to $943 million for the fourth quarter 2020, excluding cash paid for Special Items of $17 million and $19 million, respectively"

Revenue = $4.847B

Depreciation and Amortization non-cash expense: $877M

2022 Guidance: 

Other Material Developments: Lumen to sell local incumbent carrier operations in 20 states to Apollo Funds for $7.5 billion (8/3/21); Lumen to Sell Latin American Business to Stonepeak for $2.7B (7/26/21) Those transactions are still pending. Depreciation and amortization expense associated with those transactions were not included in the 4th quarter earnings report (see footnote 4 in the earnings release). The company estimates that those held for sale operations would have increased those non-cash expenses by $165M for the 2021 4th quarter. A dividend cut is possible when Lumen completes those sales. 

U.S. Department of Agriculture awards Lumen $1.2 billion network services contract (1/20/22); Lumen Lands U.S. Army Reserve Network Contract (12/9/21)

N. Added 5 GTY at $27.25: 

Quote: Getty Realty Corp.

GTY SEC Filings

Website: Getty Realty

Our Portfolio | Getty Realty

New AC per share = $28.58 (25 shares)

Dividend: Quarterly at $.39 per share

Yield at AC = 5.46%, rounded up. 

Next Ex Dividend: 3/23/22

I discussed this equity REIT in my last post and have nothing substantive to add here. Item # 3.C. Added to GTY-Bought 5 at $28.35; 5 at $27.76 (2/24/22 Post) I discussed the last earnings report in that post. SEC Filed Press Release

I am just averaging down in 5 share lots. 

O. Eliminated KPTI-Sold 20 at $7.2: 

Quote: Karyopharm Therapeutics Inc. (KPTI)

Investor Relations | Karyopharm Therapeutics - Corporate Profile

Drug Pipeline-Karyopharm’s pipeline of investigational medicines

10-K for 2021

KPTI SEC Filings (2021 GAAP Loss of $124+M or -$1.65 per share)

KPTI Analyst Estimates | MarketWatch (losses through 2024)  

Investment Category: Lottery Ticket Basket  

Profit Snapshot: +$37.88

This 20 share lot was bought at $5.31. Item # 1.J. Restarted KPTI in Schwab Account-Bought 20 at $5.31 (11/11/21 Post)

I discussed the reasons for selling this Lotto in a comment published yesterday. 

The speculative argument for KPTI was based IMO solely on the possibility that its drug Selinexor, brand name XPOVIO, would receive FDA approval for more indications.  One of those indications was for advanced or recurrent endometrial cancer based on a Phase 3 trial results. The FDA basically told KPTI that the data was insufficient for approval. Karyopharm Provides U.S. Regulatory Update on Selinexor in Advanced or Recurrent Endometrial Cancer The stock fell $4.13 yesterday or 39.75%, closing at $6.26. 

Nonetheless, KPTI, as small biotechs are prone to do, will continue spending money on trials for this indication and hopes to have results in 2024. 

So rather than having a new revenue source, the company is giving shareholders more losses. 

There is a tendency for small biotechs to continue incinerating money long after a drug receives approval, as more money is spent on trials for other indications and/or for other drugs in clinical trials. That is the case with XPOVIO which has received regulatory approval for several indications starting in July 2019. Xpovio (selinexor) FDA Approval History - Drugs.com Yet, KPTI continues to report losses and is expected to continue doing so. KPTI Shareholders would be better off by the company selling itself at a premium price with contingent value rights (CVR) for further approved indications. CVRs can turn into a legal mess when there is a deadline for the subsequent approvals, and the acquiring company drags the process out to avoid paying the CVR.  

I am probably going to avoid this one until the price falls below $2 per share and will only then play with no more than 1/2 of the house's money. I will also need a material positive development. 

Prior Sell Discussions: Item # 1.P. Pared KPTI - Sold 5 at $11.6 (2/17/22 Post)(profit snapshot = $31.56); Item # 1.J.  Sold 10 out 15 KPTI in Fidelity account at $7.94 (11/11/21 Post)(profit snapshot = $22.59)(contains snapshots of prior round-trip trades); Item # 1.A. Sold 30 KPTI at $11.36 (12/4/2017 Post)(profit snapshot = $54.99); Item # 3.C. Sold 30 KPTI at $12.04 (3/13/17 Post)(profit snapshot = $145.89) 

Another trade generated a profit of $115.25, buying 30 shares at $6.82 and selling at $10.67: South Gent's Comment Blog # 8

KPTI Realized Gains to Date: $408.16  ($370.28 in prior gains)

Disclaimer: I am not a financial advisor, but simply an individual investor who has been managing my own money since I was a teenager. In this post, I am acting solely as a financial journalist focusing on my own investments. The information contained in this post is not intended to be a complete description or summary of all available data relevant to making an investment decision. Instead, I am merely expressing some of the reasons underlying the purchase or sale of securities. Nothing in this post is intended to constitute investment or legal advice or a recommendation to buy or to sell. All investors need to perform their own due diligence before making any financial decision which requires at a minimum reading original source material available at the SEC and elsewhere. A failure to perform due diligence only increases what I call "error creep". Stocks, Bonds & Politics: ERROR CREEP and the INVESTING PROCESS Each investor needs to assess a potential investment taking into account their personal risk tolerances, goals, and situational risks. I can only make that kind of assessment for myself and my family members.