ABBV, ARGO, ARGD, CAG, CFG, DGX, FNB, FTKLX, GILD, GIS, GOODN, GTY, KREF, MBINP, ONB, VNOPRM, WBSPRG

Economy: 

Jobs report October 2022: Payrolls surged by 261,000 in October, better than expected

Employment Situation Summary - 2022 M10 Results The job gains in August and September were revised up by 29,000. Average hourly earnings rose 12 cents to $32.58. Over the past 12 months, average hourly earnings rose 4.9%.

Strong October Job Report Sets the Stage for Continued Fed Rate Increases | Morningstar

The probability for a 75 basis point hike next month is close to 50%.

As of 6:40 CST on 11/8/22 

Probabilities as of December 2023: 

CME FedWatch Tool - CME Group

As expected the FED raised the FF rate by 75 basis points last Wednesday bringing the range up to 3.75% to 4.00%. That was the 4th consecutive 75 basis point increase. 

In its monetary policy statement, the FED “will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments.” Federal Reserve issues FOMC statement The probability that the FF range will be at least 4.75% to 5% by year end 2023 is currently slightly over 60%. 

I do not foresee the FED raising the FF rate after it becomes clear that the economy has entered a recession. The normal response would be to lower rates. 

What causes inflation? | Stanford News This is an interview with John Taylor, a Stanford University economics professor, who assigns the blame primarily to the FED's monetary policies. 

Home-buying sentiment hits all-time low, as mortgage rates surpass 7%, Fannie Mae says - MarketWatch; Mortgage News Daily 

Hedge-fund giant Elliott warns looming hyperinflation could lead to 'global societal collapse' - MarketWatch; Hedge fund giant Elliott warns looming hyperinflation could lead to 'global societal collapse' | Morningstar

Debt Limit Showdown Looms as White House Braces for a Divided Washington - The New York Times Republicans are capable of causing a U.S. debt default unless the Democrats agree to deep spending cuts that further republican policy objectives. Republicans Float Changes to Social Security and Medicare - The New York Times Of course, almost all republican candidates do not identify the specific programs they want to cut and by how much before the election. That would lose them votes. Some have specifically mentioned cuts in Medicare and Social Security. Some Republican senators are talking openly about Social Security cuts - MarketWatch; GOP Members of Congress Threaten Debt Limit Default To Cut Social Security and Medicare 

China posts 6-month high Covid count as it sticks with strategy

++++

Putin/Russia: 

440 Russian Reservists Died in Ukraine After Officers Ran Away, Soldier Says

Russian marines complain of 'incomprehensible' losses in Ukraine - The Jerusalem Post

Putin 'makes chilling Hiroshima nuclear threat' during call with Macron - LBC; 'Don't need to hit major cities': Putin cites Hiroshima & Nagasaki bombings in chat with Macron - YouTube

Russian Military Leaders Discussed Use of Nuclear Weapons, U.S. Officials Say - The New York Times Those conversations were intercepted by the U.S. and occurred at the same time Russia was making the baseless claim that Ukraine was going to use a dirty bomb on its own territory and citizens even as it was beating the Russian army in conventional warfare. 

Zelensky accuses Russia of energy 'terrorism' as Russian strikes knock out power for millions | CNN; How Congress Should Designate Russia a State Sponsor of Terrorism

I thought this interview was interesting. Lt. General Ben Hodges, who is now retired and was the commanding general of U.S. forces in Europe, is predicting that Russia will soon lose Kherson, the first major city captured in Russia's invasion, and will be forced out of Crimea next year General predicts Putin will lose everything he gained since 2014 | Lt. Gen. Ben Hodges - YouTube The odds of Russia using nuclear weapons increases substantially IMO if Ukraine attacks Russia's military installations in Crimea using the Himars manufactured by Lockheed Martin. 

HIMARS | Lockheed Martin; HIMARS: How it's changing Ukraine's fight against Russia - YouTube (includes interview with Ben Hodges)

Russian oligarch Yevgeny Prigozhin, "Putin's chef," admits interference in U.S. elections - CBS News'; Putin's chef' and Wagner group mercenary boss Yevgeny Prigozhin admits meddling in US elections - ABC News

++

Trump and His Party: 

Trump's party will regain control over the House in today's mid-term election. 

Some democrat seats will be lost due solely to clearly undemocratic gerrymandering by republican legislatures. {for example, Gerrymandering: Tennessee lawmakers carved up Nashville with abandon; Nashville/Davidson County (combined government) was a safe democrat congressional district. The current congressman won 100% of the vote in 2020 since no republican bothered to run against him. He retired rather than face certain defeat after the republican state legislature decided to get rid of him.  The anti-democracy party carved up this democrat stronghold into 3 pieces, carefully placing each one in heavily republican rural areas and republican dominated small towns as far away as Cookeville, Tennessee, so that three 100% pure Trumpsters will now represent parts of Nashville including the heavily concentrated African American areas. Nashville will simply not be allowed to have a democrat as their representative anymore. 64.5% of Nashville/Davidson County votes were cast for Biden}

Several news reports claim that Donald will announce that he is running again after the midterms. 

DeSantis, a Trump clone who is not crazy, putting aside for now his recent ad that suggests God has anointed him to rule, has reportedly told donors that he will not challenge Trump for the GOP 2024 presidential nomination. GOP Insiders Are Starting to Doubt Ron DeSantis Would Actually Take On Trump | Vanity Fair 

The only remaining unanswered question is whether Trump's party will secure a majority in the Senate. My odds that the GOP will pick up a net 3 senate seats is around 30%. The Democrats have 4 vulnerable Senate seats (New Hampshire, Georgia, Arizona and Nevada)  They will need to win 3 out of 4 and 1 republican seat (PA) to maintain 50 seats. I do not see Democrat challengers winning in Ohio, Florida, Wisconsin or North Carolina, though Wisconsin and Ohio may end up being within 4%. What the latest polls show about 2022's Senate swing state races - POLITICO  

I do not anticipate that the republican Supreme Court's decision to abolish the right to privacy will meaningfully impact the results. The vast majority of voters who favored Roe v. Wade or have major concerns about the growing republican threat to American democracy, which I view as substantial, already vote for democrats. Since I am pro-democracy, I am now a 1 issue voter 

Swing voters will incorrectly blame the Democrats for inflation and high gas prices. Problematic inflation and high energy prices are global problems whose causes are not related to political ideology or who controls the government (dictator or democracy; conservative or liberal). 

World Economic Outlook: International Monetary Fund (11/6/22) (2022 global inflation estimated at 8.8%) 

The U.S. inflation rate would be about the same IMO if Donald had won in 2020. 

One lie being peddled routinely by republicans is that the Democrats funded 87,000 new IRS agents to audit hard working Americans. Fact-Checking the Misleading Claim About 87,000 Tax Agents - The New York Times Lying works on the intended audience.     

Trump speeches use dozens of lies, exaggerations to draw contrast with Biden - The Washington Post

Paul Pelosi: Who is spreading false claims about attack on Nancy Pelosi's husband? - BBC News; With Falsehoods About Pelosi Attack, Republicans Mimic Trump - The New York Times

How Republicans Fed a Misinformation Loop About the Pelosi Attack - The New York Times  

Trump's Paul Pelosi conspiracy theory quickly goes up in flames - The Washington Post

There is a high resolution video of Paul Pelosi's attacker breaking the glass with a hammer, which he has admitted doing according to the police. Capitol Police cameras caught break-in at Pelosi home, but no one was watching - The Washington Post 

That video evidence and the perps admission are insufficient for Trump and his cult members to accept those facts as true. Donald Trump joins the Paul Pelosi conspiracy caucus; Conspiracy theories aided by Musk, Trump soar after Paul Pelosi attack | The Hill; Trump joins conspiracists stoking doubts about Pelosi attack - POLITICO Neither Trump nor his cult members will ever apologize for making spurious fact free allegations about an elderly man being attacked in his home with a hammer. That says a great deal about their character-all you really need to know.   

Republican door knockers intimidate voters while hunting for fraud, say officials | Reuters; Armed and Masked Vigilantes Are Staking Out Arizona Ballot Boxes With the GOP’s Blessing | Vanity Fair

In several states, republicans armed with assault rifles are stationed near ballot drop boxes. When a voter drops a ballot into the box, they take a photo of their license plate. Complaints allege voter intimidation at Phoenix-area drop boxes : NPR

Justice Clarence Thomas (R) was 'key' to a plan to delay certification of 2020 election, Trump lawyers said in emails The wife of Clarence Thomas was actively working with Trumpsters to cancel the certified election results and have republican controlled legislatures appoint the electors. Ginni Thomas pressed Wisconsin lawmakers to overturn Biden’s 2020 victory - The Washington Post

Jordan Klepper Fingers the Midterms - America Unfollows Democracy - Full Special | The Daily Show - YouTube According to one Trumpster, there is a cabal called the Council of Foreign Relations that pulls all of the strings. She just "learned" that reality creation somewhere.  

Lauren Boebert (R-Colo): "How many AR-15s do you think Jesus would have had? Well, he didn’t have enough to keep his government from killing him." Boebert tells Republican dinner guests they’re part of ‘second coming of Jesus’ 

Nikki Haley (R) says Senator Warnock (D) should be deported at Walker rally | The Hill

How Turning Point, a pro-Trump youth group, remade the Arizona GOP - The Washington Post The Arizona republican party is controlled by Turning Point, as it tilts further to the far right. The Trumpsters were already leaning far to the right by electing and reelecting far right reactionaries Paul Gosar and Andy Biggs to Congress. 

Turning Point is not a conservative organization, nowhere close IMO,  but a far right one engaged in a constant stream of reality creation that  successfully influence those amenable to its messaging.  

The leader of Turning Point recently called for a "hero" to bail Paul Pelosi's attacker out of jail. Jason Campbell on Twitter: "Charlie Kirk calls for his audience to post bail for Pelosi attacker: "If some amazing patriot out there in San Francisco or the Bay Area wants to really be a midterm hero, someone should go and bail this guy out...Bail him out and then go ask him some questions"-Twitter 

Charlie Kirk is the co-founder and leader of this reactionary organization that spreads false information and fact free conspiracy theories. 

Turning Point members were in attendance at the January 6th Trump rally. 

The organization proposed a gerrymandering plan that would remove democrats from Arizona congressional seats. When the then current GOP state house leader opposed that effort, Turning Point successfully defeated him with their  candidate in the republican primary.  

How a GOP Congress Could Roll Back Freedoms Nationwide - The Atlantic

++++

1. Corporate Bonds: $15,000

Fixed Income Adds Discussed this Post = $44,000

A. Bought 2 Piedmont Office REIT LP 4.45% SU Maturing on 3/15/24 at a Total Cost of 99.206: 

IB Account

Purchased 9/16/22

Issuer: Operating entity for Piedmont Office Realty Trust Inc. (PDM) who guarantees the notes. 

Finra Page: Bond Detail (prospectus linked)

Credit Ratings: Baa2/BBB

YTM at total cost = 5.002%

Current Yield at TC = 4.4856%

B. Bought 1 Public Service E&G 3.15% First Mortgage Maturing on 8/15/24 at a Total Cost of 97.825: 

Issuer: Wholly owned operating subsidiary of the utility holding company  Public Service Enterprise Group Inc. (PEG) 

PEG SEC Filings 

Security: First Mortgage Bond  

FINRA Page: Bond Detail (prospectus linked)

The prospectus linked at FINRA is to a pricing supplement that refers back to an August 2014 Prospectus that contains more details about the first mortgage. Prospectus  

Page of 8/2014 Prospectus  

Credit Ratings: A1/A

YTM at Total Cost: 4.352%

Current Yield at TC = 3.22%

C. Bought 1 Public Service Electric & Gas 3.15% First Mortgage Bond Maturing on 8/15/24 at a Total Cost of 96.767:

Purchased on 10/21/22. Discussed out of time order. 

This is the same bond reference in Item #1.B. above. 

YTM at Total Cost = 5.043%

Current Yield = 3.2552%

I now own 3. 

D. Bought 1 Laboratory Corporation 3.25% SU Maturing on 9/1/24 at a Total Cost of 97.93: 

IB Account

Purchased on 9/15/22. 

Issuer:  Laboratory Corp. of America Holdings (LH) 

LH Analyst Estimates | MarketWatch

LH SEC Filings 

FINRA Page: Bond Detail (prospectus not linked) 

Prospectus 

Credit Ratings: Baa2/BBB

YTM at Total Cost = 4.368%

Current Yield at TC = 3.3187%

Previous sale: Item # 3.A. Sold at 100.131 (6/18/19 Post)

E. Bought 1 Laboratory Corporation 3.25% SU Maturing on 9/1/24 at a Total Cost of 96.91: 

Purchased on 10/11/22. Discussed out of time order. 

This is the same bond discussed in Item #1.C. above. 

I now own 4 bonds. 

YTM at Total Cost: 4.987%

Current Yield at TC = 3.3536%

F. Bought 2 WP Carey 4% SU Maturing on 2/1/25 at a 98.34 Total Cost: 

Purchased on 9/19/22. 

Issuer: W. P. Carey Inc. (WPC) 

WPC SEC Filings 

Investor Relations - W. P. Carey Inc.

Last Bond Offering (10/21): $350M of 2.45% SU Notes Maturing in 2032 

I own the common stock. 

Finra Page: Bond Detail (prospectus linked)

Credit Ratings: Baa2/BBB

YTM at Total Cost = 4.75%

Current yield at TC = 4.0675%

I now own 6. 

G. Bought 2 Martin Marietta 4.25% SU Maturing on 6/2/2024 at a Total Cost of 99.031: 

Purchased on 9/23/22. 

Issuer: Martin Marietta Materials Inc. (MLM) 

MLM Analyst Estimates | MarketWatch

MLM SEC Filings 

SEC Filed Earnings Press Release for the Q/E 6/30/22 

Finra Page: Bond Detail (prospectus linked)

Credit Ratings: Baa2/BBB+ 

YTM at Total Cost = 4.8259%

Current Yield at TC = 4.29%

H. Bought 1 Transcanada Pipeline LTD 3.75% SU Maturing on 10/16/23 at a Total Cost of 98.763: 

Purchased on 10/26/22. Discussed out of time order. 

Issuer: Transcanada Pipelines was acquired by TC Energy Corp.  (TRP) and become a wholly owned subsidiary. I own TRP common shares. 

 TC Energy and TC PipeLines, LP complete merger

SEC Filed 2021 Annual Information Form 

Finra Page: Bond Detail (prospectus linked)

Credit Ratings: Baa1/BBB+

Fitch Affirms TC Energy Corporation at 'A-'

YTM at Total Cost: 5.076%

Current Yield at TC =  3.797%

I. Bought 2 Enbridge 4% SU Notes Maturing on 10/1/23 at a Total Cost of 99.01: 

Purchased 10/27/22. Discussed out of time order. 

Issuer: Enbridge Inc. (ENB) 

ENB SEC Filings 

FINRA Page: Bond Detail (prospectus linked)

Credit Ratings: Baa1/BBB+     

YTM at Total Cost: 5.115%

Current Yield at TC  = 4.04%

Last Bond Offering (September 2022): Prospectus (US$1.1B in fixed to floating rate junior bonds) The two securities described in that prospectus are similar to reset equity preferred shares, but have a superior claim to cash and a fixed maturity date. Interest payment deferral is permitted for up to 5 years provided cash in not used to pay dividends on junior securities or to buy junior securities during deferral. After the fixed rate period expires, the coupon is set at a spread to the 5 year U.S. treasury. ENB has the option to redeem up to 3 months prior to and on the reset date. It is not inconceivable that I will buy 2 but not until the price drops. Bond Detail for Initial Fixed Rate of 7.65% 

I own a number of different ENB SU bonds, an exchange traded junior bond, the reset equity preferred stock ENB.PRP:CA and the common shares. I will be discussing in my next post a 100 share purchase of ENB.PRP:CA which brings me up to 500 shares. 

J. Bought 2 Retail Opportunity Investment 5% SU Maturing on 12/15/23 at a Total Cost of 98.85:

Purchased 11/1/22. Discussed out of time order. 

Issuer: Operating Entity for Retail Opportunity Investment (ROIC) who guarantees the notes: 

ROIC SEC Filings 

ROIC SEC Filed Earnings Press Release for the Q/E 9/30/22 and Supplemental Disclosures 

10-Q for the Q/E 9/30/22 (debt discussed at pp. 19-22)

FINRA Page: Bond Detail (prospectus not linked)

Prospectus 

Credit Ratings: Baa2/BBB-

YTM at Total Cost: 6.074%

Current Yield at TC =  5.0582%

2. Treasuries-Secondary Market Purchases: 

$6,000 Add

A. Bought 1 Treasury 2.875% Coupon Maturing on 10/31/23 at 98.843:

Purchased on 9/16/22. 

YTM at Total Cost: 3.944%

Current Yield at Total Cost:  2.91%, rounded up. 

I now own 2 bonds. 

B. Bought 1 Treasury 2.5% Coupon Maturing on 4/30/24 at 97.6744: 

Purchased on 9/16/22. 

YTM at Total Cost = 4%

Current Yield at TC  = 2.56%

I now own 3 bonds including 2 in a RI account. 

C. Bought 1 Treasury 2.5% Coupon Maturing on 1/31/24 at 98: 

Purchased 9/19/22. 

YTM at Total Cost = 4.022%

Current Yield at TC = 2.55%

I now own 5 bonds.

D. Bought 1 Treasury 3% Coupon Maturing on 7/31/24 at 97.9226: 

Purchased on 9/22/22.

YTM at Total Cost = 4.175% 

Current Yield at TC = 3.06%, rounded down. 

First purchase. 

E. Bought 1 Treasury 3% Coupon Maturing on 7/31/24 at 97.4826:

Same note as discussed in Item #2.D. above.

Purchased 10/26/22. Discussed out of time order. 

YTM at Total Cost = 4.501%

Current Yield at TC = 3.0775%

I now own 2. 

F. Bought 1 Treasury 2.5% Coupon Maturing on 4/30/24 at 96.9218: 

Purchased 10/31/22. Discussed out of time order. 

YTM at Total Cost = 4.652%

Current Yield at TC = 2.58%

I now own 4 including 2 in a RI account. 

3. Treasuries-Auction Purchases: $15,000

2022 Treasury Daily Yield Curve 

A. Bought at 11/1/22 Auction 2 Treasury Bills at 95.4449

1 Year Bill 

Matures on 11/2/23

Investment Rate (coupon equivalent): 4.73%

B. Bought 3 Treasury Bills at 11/2/22 Auction: 

119 Day T Bill 

As mentioned previously, the Treasury has started to auction 4 month bills. This is my first purchase. 

Matures on 3/7/23

Investment Rate (coupon equivalent):  4.402%

C. Bought 10,000 Treasury Bills at 11/3/22 Auction: 

28 Day Bill

Matures on 12/6/22

I elected the automatic rollover option.  

Schwab combined this purchase with another $10K bill maturing on the same day for an automatic rollover. That earlier purchase was not set up for an automatic rollover.     

Investment Rate = 3.681%

4. CDs-FDIC Insured: $8,000

A. Bought 2 Live Oak 4.75% CDs Maturing on 11/4/24: 

Interest Paid Monthly. 

B. Bought 2 Horizon Bank 4.75% CDs Maturing on 11/8/24:  

Monthly Interest Payments. 

The Live Oak CD was not offered by Schwab so I bought this one in that account. 

C. Bought 2 Live Oak 4.85% CDs Maturing on 11/4/25: 

Monthly Interest Payments. 

D. Bought 2 JP Morgan Chase 4.7% CDs Maturing on 2/9/24: 

Quarterly interest payments. 

5. SMALL BALL - Equity Preferred Stocks: 

Cost: $1,332 (6 preferred stocks)

Annual Dividends = $102.82

Weighted Yield = 7.72%

Equity preferred stocks are a disfavored category for me. 

While classified as equity on the balance sheet, their owners do not have an equity interest in the business. 

The equity classification on the balance sheet simply highlights their lowly status in the capital structure and is consequently relevant as a credit risk issue. 

Equity preferred stocks are more like bonds, but lack the protections of bonds.  

As long as intermediate term interest rates continue to trend up, I would anticipate that equity preferred stocks will continue drifting down in price. It is not difficult to contemplate what would happen to the prices when and if the 10 year treasury yield increased to 6% or 8%. 

Volatile movement in common stocks with a strong downside bias can add momentum to the price decline which is consistent with historical price movements in preferred stocks. 

To the extent that can be rationally explained given the bond like characteristics, investors may be reacting or overreacting to perceived increases in credit risk caused by whatever is sending common stocks into a tailspin.  

Bank holding companies generally issue non-cumulative preferred stocks, and I discuss 3 of those below: Item # 3.C., #3.D. and # 3.E.. 

In the event the FDIC seizes the operating subsidiary of a bank holding company, the preferred stock issued by that holding company would become worthless and that is the forecast that I would make when deciding how much to invest. 

There is at least a decent possibility that a REIT preferred stockholder will receive something in a bankruptcy, with the return dependent on the value of the owned real estate, likely diminished by economic events that caused the BK. 

The yields on bank holding company preferred stocks will generally be lower than REIT equity preferred stocks. 

I attribute the lower yields mostly to the payment of qualified dividends compared to non-qualified dividends paid by REITs as pass through entities. 

Another reason is the banks have common stock dividend payout ratios near 50%, or less, compared to REIT payouts that exceed GAAP earnings, though less than free cash flow after adding back non-cash depreciation expense back to GAAP net income.

A. Added 5 VNO.PRM at $15.38-Schwab Taxable Account: 

Quote: Vornado Realty Trust 5.25% Cumulative Preferred Series M

Issuer: Vornado Realty Trust (VNO)

VNO SEC Filings

SEC Filed Earnings Press Release for the Q/E 9/30/22 

Last Discussed: Item # 3.A. Added to VNO.PRM - Bought 5 at $19.41-Schwab Account (5/19/22 Post) 

Investment category: Advantages and Disadvantages of Equity REIT Cumulative Equity Preferred Stocks, a subcategory of the Equity REIT Common and Preferred Stock Basket Strategy

Security: Prospectus

Placement in Capital Structure: Equity Preferred, senior only to common stock. 

Par Value: $25

Dividends: Cumulative, Non-Qualified (pass through entity, not taxed at the corporate level) and Paid Quarterly

Optional Call Date: On or after 12/13/22 at par value plus accrued and unpaid dividends. 

Stopper Clause: Yes. A "stopper clause" is the legal mechanism that enforces the preferred shareholders superior right to cash vs. the common shareholder. VNO can not defer paying a cumulative preferred dividend and continue paying a cash dividend to the common shareholders. 

Next Ex Dividend: 12/14/22

Average cost per share: $19.33 (15 shares)

Yield at AC per share: 6.79%

Yield at $15.38: 8.53%

Sell Discussions: Item # 3.A. Sold 10 VNO.PRM at $25.34 (10/31/2020 Post); Item # 3.C. Sold 5 VNO.PRM at $24.99-Highest Cost lot bought at $19 (7/18/20 Post); Item # 2.A. Eliminated VNO.PRM-Sold 50 at $22.95 (5/23/19 Post)

VNO.PRM Realized Gains to Date: $158.54

Purchase Restriction: 5 share lots with each subsequent purchase required to be at the lowest price in the chain. 

Maximum Position All Accounts: 100 shares 

Goal: Any total return in excess of the dividends paid.  

B. Bought 10 GOODN at $19.45 in Fidelity Taxable Account and 10 at $19.2 in Schwab Taxable Account:

Quote: Gladstone Commercial Corp. 6.625% Preferred Series E 

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

Issuer:  Gladstone Commercial Corp. (GOOD) - Externally Managed REIT

GOOD SEC Filings 

Security: Equity Preferred Stock 

Prospectus 

Par Value: $25 (public offering at $25 in September 2019)  

This security is subject to an issuer ATM program. 

Coupon: 6.625% paid on the $25 par value 

Yield at $19.45 = 8.5154%

Yield at $19.2 = 8.6263%

Dividends: Paid monthly, non-qualified and cumulative

Stopper Clause: Standard

Maturity: Potentially perpetual, unless issuer exercises optional redemption right. 

Optional Redemption: On or after 10/4/24 (standard 5 years after IPO)

I own the common shares that also pays monthly dividends.  

C. Bought 10 SIVBP at $18.8; 5 at $17.7; 5 at $16.95 : 

The 10 share lot was purchased shortly before the ex dividend date and the two 5 share lots shortly after that date. 

Quote: SVB Financial Group Dep. Preferred  Series A Stock 

Issuer: SVB Financial Group 

SIVB Analyst Estimates | MarketWatch

SIVB SEC Filings 

SIVB SEC Filed Earnings Press Release for the Q/E 9/30/22 

This is my first purchase: 

Security: Equity Preferred Stock. 

Prospectus (public offering at $25 in December 2019)

Par Value: $25

Coupon: 5.25% paid on the $25 par value. 

Average cost per share: $18.06 (20 shares)

Yield at $18.06 AC: 7.2674%

Yield at $16.95: 7.74%

Dividends: Paid quarterly, qualified and non-cumulative. 

Stopper Clause: Standard (page S-17)

Maturity: None, potentially perpetual unless issuer exercises optional redemption right. 

Optional Redemption: On or after on 2/15/25

D. Bought 5 MBINP at $23.42: 

Quote:  Merchants Bancorp  Fixed to Floating Rate Non-Cumulative Series A Preferred Stock

Issuer: Merchants Bancorp (MBIN)

MBIN SEC Filings

MBIN | Merchants Bancorp Analyst Estimates

SEC Filed Earnings Press Release for the Q/E 9/30/22 

Last Discussed: Item # 4.A. Started MBINP - Bought 10 at $24.51 (7/3/2020 Post) 

Security: Equity Preferred Stock 

Placement in Capital Structure: Junior to all bonds, senior only to common stock. 

Prospectus

Par Value: $25 

Fixed Coupon: 7% to but excluding 4/1/24

Dividends: Paid quarterly, qualified and non-cumulative

Variable Rate Coupon: 460.5 basis points above the 3 month Libor rate or the alternative rate as described at pages S-24-25. The alternative rate is likely to be the 3 month SOFR. 

SOFR Averages and Index Data - FEDERAL RESERVE BANK of NEW YORK

Stopper Clause: Yes, standard. Prior to eliminating the preferred stock dividend, MBIN must eliminate a common share cash dividend and can not use cash to buy back stock. 

Average cost per share = $23.81

Yield at AC using the 7% Fixed Rate Coupon: 7.35%

Last Ex Dividend Date: 9/14/22

E. Bought 5 WBS.PRG at $22.8: 

Quote: Webster Financial Corp. 6.5% Preferred A Stock 

Issuer: Webster Financial Corp.  (WBS) 

This security was originally issued by Astoria Financial that was acquired by Sterling Bancorp in 2017. The symbol for this preferred stock then became STL.PRA.  SEC Filings: Sterling Bancorp was acquired by Webster in January 2022. The Sterling Bancorp preferred shares were converted in the WBS preferred shares that I bought. SEC Filing 

WBS Analyst Estimates | MarketWatch

WBS SEC Filings

WBS SEC Filed Earnings Press Release for the Q/E 9/30/22 

This is my first purchase. I own the common shares. 

Security: Equity Preferred Stock, senior only to common stock in the capital structure 

Par Value: $25

Dividends: Paid quarterly, non-cumulative and qualified. 

Stopper Clause: Standard 

Credit Rating: Baa3

Optional Call Date: On or after 10/15/22

Currently callable at the $25 par value plus accrued and unpaid dividends.  

Yield at $22.8 = 7.1272%

Next Ex Dividend: 12/29/22

F. Bought 10 RTLPP at $19.15 in Schwab Account: 

Quote: Necessity Retail REIT Inc. 7.5% Preferred Series A Stock

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

Issuer: Necessity Retail REIT Inc. (RTL)- Externally Managed

SEC Filed Earnings Press Release for the Q/E 9/30/22 and Supplemental 

SEC Filed Investor Presentation-November 2022 

An investment firm has announced that it has launched a proxy fight to throw out RTL's directors and ultimately to replace the external manager. SEC Filing-Alternative Proxy Statement The external manager does charge too much IMO. I own the common shares and will vote to remove the existing directors. 

Last Discussed:  Item # 5.D. Added to RTLPP in Fidelity Taxable Account - Bought  5 at $20.6; 5 at $19.6; 5 at $18.79 (10/18/22 Post) 

Position this Account: 10 shares 

Yield at $19.15 = 9.79%

Security: Equity Preferred Stock 

Prospectus (May 2019) 

Par Value: $25

Optional Redemption: At par + accrued dividends on or after 3/26/24. 

Maturity: None, potentially perpetual 

Placement in Capital Structure: Equity Preferred, senior only to common

Dividends: Paid Quarterly, Cumulative and non-Qualified.  

Stopper Clause: Yes, standard in that the company is prohibited from paying a common share cash dividend and deferring the preferred share dividend payment.  

Last Ex Dividend: 10/6/21

6. Small Ball-Common Stocks & Exchange Traded Bond: 

Stock Reductions: $2,517.36

Stock Additions: $232.7 

Net Outflow: -$2,284.66

A. Pared GIS in Fidelity Taxable Account - Sold 5 at $81.64: 

Quote: General Mills Inc. (GIS) 

GIS Analyst Estimates | MarketWatch

GIS SEC Filings 

Profit Snapshot: $118.72 (10/28/22 sale only)

Average cost per share before pare: $55.94 (55 shares)

Average cost per share after pare this account: $55.75 (50 shares)

Snapshot Intraday on 10/28/22 after pare

While I sold my highest cost 5 share lot, I am not reducing my average cost per share much since the remaining lots were all bought near my current AC per share. 

Dividend: Quarterly at $.54 per share ($2.16 annually), last raised from $.51 effective for the 2022 4th quarter payment. 

General Mills, Inc. (GIS) Dividend History | Seeking Alpha

Yield at $55.75: 3.87%

Last Ex Dividend: 10/6/22  

Last Discussed: Item # 4.B. Pared GIS in Fidelity Taxable Account - Sold 5 at $80.65 (9/27/22 Post) I discussed the last earnings report in that post. I had a favorable response to it as did the Stock Jocks. (First F/Q ending 8/28/22)

GIS Realized Gains (2007 to Date): $2,650.97

B. Pared CAG in Vanguard Taxable Account - Sold Highest Cost 5 Share Lot at $36.66: 

Quote: Conagra Brands, Inc.

CAG Analyst Estimates | MarketWatch

CAG SEC Filings

Brands | Conagra Brands

Profit Snapshot: $4.59

This is my first round-trip trade for this stock. I have stayed away from owning shares until I started small ball purchases in 2021. I view other packaged food stocks more attractive. 

I did recently buy 2 Conagra bonds. Item # 2.D. Bought 2 Conagra 4.3% SU Maturing on 5/1/24 at a Total Cost of 98.573 (10/18/22 Post); Bond Detail

Last Discussed: Item # 2.H. Added to CAG in Vanguard Taxable Account - Bought 1 at $33.91; 4 at $33.8; 10 at $32.45 (8/8/21 Post) 

Average cost per share this account before pare: $33.24 (25 shares)

New Average cost per share this account: $32.87 (20 shares)

Dividend: Quarterly at $.33 per share ($1.32 annually), last raised from $.3125 effective for the 2022 third quarter payment. 

Dividend Information | Conagra Brands

Yield at AC = 4.0158%

Last Ex Dividend: 11/2/22

Last Earnings Report (First F/Q ending 8/28/22): 

SEC Filed Press Release 

GAAP E.P.S. = ($.16)

Non-GAAP E.P.S. = $.57

Company took a $386M or $.68 per share goodwill and brand impairment charge. Other items excluded from non-GAAP were a $.04 per share impairment for a business held for sale and a $.01 per share restructuring expense.  

Organic Revenues up 9.7%

Revenues up 9.5% to $2.9043B

Outlook for Fiscal 2023: 

C. Pared GILD in Fidelity Taxable Account - Sold Highest cost 2.236 Shares at $74.49: 

Quote: Gilead Sciences Inc. (GILD) 

The stock has continued to rise after this pare, closing yesterday at $81.46. I am considering whether to eliminate the position.  

GILD  Analyst Estimates | MarketWatch

GILD SEC Filings 

Pipeline | Gilead (several cancer compounds in Phase 3 trials)

I have discussed GILD stock purchases in the comment section. 

For blog discussions, I have only mentioned purchasing GILD SU bonds in two 2018 posts.

Investment Category: Bond Substitute (Defined in terms of goal, not safety, which is harvesting the dividend and reaping a small profit on the shares. Victory is defined as the dividend + a 2%+ annualized gain the shares)

Based on GILD's dividend history to date, the stock can also be classified under the Dividend Growth category. 

Profit: +$4.75

Old AC per share this account: $63.57 (12+ shares)

New average cost per share this account: $61.66 (10+ shares)

Snapshot Intraday on 10/28 after pare

Dividend: Quarterly at $.73 per share ($2.92 annually), last raised from $.71 effective for the 2022 first quarter payment. Dividend increases have recently occurred in the first quarter. 

(GILD) Dividend History | Nasdaq

Yield at $61.66: 4.7356%

Next Ex dividend date: 12/14/22 

Last Earnings Report (Q/E 9/30/22): SEC Filed Press Release 

The stock rose 12.92% on 10/28/22 in response.  

Comparisons are to the 2021 third quarter: 

GAAP E.P.S. = $1.42, down from $2.05, "mainly driven by higher acquired in-process research and development (“IPR&D”) expenses of $389 million primarily due to the acquisition of MiroBio Ltd. (“MiroBio”) and lower product gross margin and revenues, partially offset by lower income tax expense."

Non-GAAP E.P.S. = $1.90, down from $2.05 "primarily driven by the MiroBio acquisition, as well as lower product gross margin and revenues."

Non-GAAP E.P.S. Consensus at $1.43

GAAP to Non-GAAP Reconciliation for the 2022 and 2021 third quarters: 

Revenues: $7.042B, down from $7.421B, "primarily due to lower Veklury® (remdesivir) sales, partially offset by increased sales in HIV and oncology products." Remdesivir sales decreased by 52% to $925M due to lower Covid hospitalizations.  

On the positive side, HIV product sales increased 7% to $4.5B; Hepatitis C product sales increased 22% to $524M; and Hepatitis B virus and hepatitis delta virus product sales increased by 7% to $264M.  

Other product revenues also increased Y-O-Y: 

Outlook: Raised the 2022 non-GAAP E.P.S. outlook to $6.95-$7.15 from $6.35-$6.75.  

 

Prior Round-Trip: I have no recollection of this trade and simply found the trade snapshot in my "Healthcare" profit snapshot folder. 

2017 GILD 30 Shares +$103.38

I eliminated my GILD positions in Roth IRA accounts on 10/28/22. 

D. Pared GILD in Schwab Taxable Account - Sold 3 at $77.83: 

Profit Snapshot: $16.02

See Item # 4.C. Above. 

Remaining Shares this Account: 

Average cost per share: $59.72  (6+ shares)

Yield at New AC : 4.89%

E. Added 5 KREF at $16.54: 

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

Last Discussed: Item # 2.I. Pared KREF - Sold 20 at $21.06 (3/3/22 Post)(profit snapshot = $66.38) I discussed in that post the 2021 4th quarter report which I did not like. 

KREF SEC Filings

2 Year Chart as of 11/4/22: 

Last Buy Discussion: 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)

Average cost per share: $17.11 (25 shares)

Dividend: Quarterly at $.43 per share ($1.72 annually), last raised from $.37 effective for the 2018 second quarter payment. 

KREF Dividend History | Nasdaq

Yield at AC: 10.05%

Last Ex Dividend: 9/29/22

Last Earnings Report (Q/E 9/30/22): SEC Filing 

The risk is highlighted once again by a significant GAAP loss of $48.4M or $.70 per share. This loss was caused by a $80.604M addition to credit loss reserves which is classified as an expense. 

Distributable Earnings per share = $34.4M or $.50 

Consensus at $.46 per Fidelity. 

The distributable earnings per share adds back to net income the $80.604M addition to credit loss reserves. 

Net interest income = $47.316M (interest income - interest expense)

Other Income: $3.846M

Other Expenses: $13.473, included is a $6.549M fee paid to the external manager; $4.296 in "General and Administrative"; and $2.598M in expenses for real estate owned. 

Collected 100% of the interest payments due on the loan portfolio during the quarter. 

Book Value per share = $18.28, down from $19.36 as of 6/30/22

Goal: Dividend + any profit on the shares. 

I do not have access to any analyst reports. In response to this report, JMP Securities maintained an outperform rating and lowered the PT to $19 from $22; and BTIG Research kept its buy rating and lowered its PT  to $19 from $21. 

Short % as of 10/14/22: 4.55%

F. Pared FNB Again in Schwab Taxable Account - Sold 5 at $14.19:

Quote: F.N.B. Corp.

FNB SEC Filings

FNB Analyst Estimates | MarketWatch

Investment Category: Regional Bank Basket Strategy

I have been selling my highest cost lots. 

I discussed the better than expected 2022 third quarter report in this post. Item # 5.M. Pared FNB in Schwab Taxable Account - Sold 5 at $12.78; 5 at $13.47 (10/25/22 Post); SEC Filed Press Release

Profit Snapshot: +$28.93

New AC per share this account: $7.11 (50+ shares)

Dividend: Quarterly at $.12

Yield at $7.11 AC = 6.75%

Last Ex Dividend: 9/1/22

Last Buy Discussions: Item # 1.C. Added to FNB-Bought 3 at $7; 5 at $6.47; 10 at $6.81 (6/20/20 Post); Item # 4.B. Added 5 FNB at 8.8; 5 at $8.43; 5 at $7.62; 5 at $6.6 (4/30/20 Post)

FNB Realized Gains to Date: $1,678.8

G. Eliminated Small Ball Position in DGX - Sold 2+ at $143.4: 

Quote: Quest Diagnostics Inc. (DGX)

DGX SEC Filings

2021 SEC Filed Annual Report

DGX Analyst Estimates-MarketWatch

Last Discussed: Item # 2.F. Added 1 DGX at $130.5 (7/27/22 Post) 

I am going to restart a small ball position when and if the price falls below $120. I had bought 1 share at $141.5, which in retrospect was too high. Item # 2.G. Bought 1 DGX at $141.45  (11/26/21 Post) 

Profit Snapshot: $28.93

Dividend: Quarterly at $.66

Last Ex Dividend: 10/3/22 (owned as of)

Last Earnings Report (Q/E 9/30/22): Investors reacted favorably to this report, probably too favorably IMO. 

SEC Filed Press Release

Non-GAAP E.P.S. = $2.36, down from $3.96 on substantially lower COVID test revenues. 

The company did raise its 2022 guidance to $9.75 to $9.95 Non-GAAP E.P.S. from the prior guidance of $9.55 to $9.95. 

H. Eliminated ARGO -Sold 5 at $24.56 and Bought 5 ARGD at $20.8-Schwab Taxable Account: 

In this swap trade, I am moving up the capital structure from the common stocks to a senior unsecured bond that has a higher yield. 

Quote Common Stock: Argo Group International Holdings Ltd. (ARGO)

Quote SU Bond: Argo Group International Holdings Ltd. 6.5% Senior Notes Due 2042 (ARGD)

ARGO SEC Filings

Recent News: Argo is currently engaged in a proxy fight. Argo Group Highlights Successful Transformation into a Focused, Pure-Play U.S. Specialty Insurer; Reiterates Commitment to Evaluating Alternatives to Maximize Shareholder Value 

ARGO: Common Stock

ARGD: Exchange Traded Senior Unsecured Bond

Investment Category: Exchange Traded Baby Bonds 

Profit Snapshot ARGO: $20.05

ARGO Buy Discussion: Item # 3.F. Bought 5 ARGO at $20.5 (8/30/22 Post) 

Last ARGD Buy Discussion: Item #3.I. Added 5 ARGD at $22.59 (7/27/22 Post)

ARGD Description: SU Bond

Security:Final Prospectus Supplement

Issuer: Argo Group U.S. Inc., a wholly owned subsidiary of Argo Group International Holdings Ltd. (ARGO) who guarantees the notes. 

Par Value: $25  

Interest: Paid Quarterly 

Maturity: On 9/15/2042 unless called at the issuer's option earlier. 

Optional Call: At par value plus accrued and unpaid dividends whenever the issuer wants to exercise this option. Call protection expired on 4/17/17. The issuer appears content to pay 6.5% on a bond that has a 2042 maturity.  

Credit Rating: BBB- by S&P 

Trades Flat (owner on the ex interest date receives the entire quarterly interest payment/no accrued interest payment to seller)

Average Cost per share ARGD share this account: $22.67 (110 shares)

Interest Payments: Quarterly at $.40625

Yield at AC this account: 7.17%

Last Ex Interest Date: 8/31/22

This bond formerly traded under the AGIIL symbol.

Previous Sell Discussions: Item # 5.A. Pared ARGD in Schwab Account- Sold 25 at $25.4-Part of Highest Cost Lot (5/23/20 Post); Item # 3 Sold 50 AGRD at $25.87 (9/25/19 Post); Item # 4 Sold 100 AGIIL at $25.11 (9/25/17 Post); Item # 4 Sold 50 AGIIL at $26.89 - Update For Exchange Traded Bonds And Preferred Stocks Basket Strategy As 6/3/16 - South Gent | Seeking Alpha; Item # 2 Sold 50 AGIIL at $24.21-Roth IRA (6/28/14 Post); Item # 2 Sold: 50 AGIIL at $24.48 (6/7/14 Post)

ARGD-AGIIL Realized Gains to Date: $599.94

Other Taxable Account ARGD Positions: 

Fidelity: 5 shares with an average cost of $11.6 per share, purchased on 3/18/20. 

Vanguard: 10 shares with an average cost of $21.81 per share.

I would attribute the ARGD price decline to the rise in long term interest rates, though some credit risk concern may have entered into pricing decisions due to recent poor earnings reports as previously discussed here. 

I. Pared GTY in Fidelity Account- Sold Highest Cost 5 Shares at $30.89: 

Quote: Getty Realty Corp.

"Getty Realty Corp. is a publicly traded, net lease REIT specializing in the acquisition, financing and development of convenience, automotive and other single tenant retail real estate. As of September 30, 2022, the Company’s portfolio included 1,021 freestanding properties located in 38 states across the United States and Washington, D.C."

Management: Internal 

Website: Getty Realty

GTY SEC Filings

10-Q for the Q/E 9/30/22 

2021 Annual Report

Our Portfolio | Getty Realty

SEC Filed Investor Presentation: 10/26/22 

Investment Category: Equity REIT Common and Preferred Stock Basket Strategy

Last Discussed: Item # 2.L. Added to GTY - Bought 5 at $25.95 (5/12/22 Post) 

Profit Snapshot: +$3.73

Old AC per share this account: $28.14 (30 shares) 

New AC per share this account: $27.74 (25 shares)

Snapshot as of 10/27/22 Close

Dividend: Quarterly at $.43 ($1.72 annually), last raised from $.41 effective for the 2023 1st  quarter payment that goes ex dividend in late December.  

Getty Realty Corp. Announces Increased Quarterly Cash Dividend 

 

Getty Realty Corp. (GTY) Dividend History | Seeking Alpha

Yield at New AC =  6.2%

Next Ex Dividend: 12/21/22

Last Earnings Report (Q/E 9/30/22): SEC Filed Press Release 

FFO per share: $.50

AFFO per share: $.54

GAAP Net Income to AFFO Reconciliation: 

"As of September 30, 2022, the Company had $625 million of outstanding indebtedness consisting entirely of senior unsecured notes with a weighted average interest rate of 4.1% and a weighted average maturity of 6.4 years. There were no amounts drawn on the Company’s $300 million unsecured revolving credit facility and total cash and cash equivalents were $11.4 million."

2022 Guidance-Increased AFFO per share from $2.10-$2.12 to $2.12- $2.13

Maximum Position All Accounts: 100 shares, in part due to environmental remediation issues discussed in th 10-Q (pages 12-13; 16-18; for example, leaks from underground storage tanks at gas stations).   

J. Pared CFG in Schwab Taxable Account - Sold 2 at $41.11: 

Quote: Citizens Financial Group Inc.  (CFG)

CFG Analyst Estimates | MarketWatch

CFG SEC Filings

10-Q for the Q/E 9/30/22 

Investor Relations – Citizens Bank

CFG is a large regional bank holding company with $224.7B in assets as of 9/30/22. CFG through it operating subsidiary has 1,200 branches located in 14 states and the District of Columbia. 

Investment Category: Regional Bank Basket Strategy

Profit Snapshot: $.84

Last Buy Discussion: Item # 3.L. Added to CFG in Schwab Account - Bought 3 at $33.89; 2 at $33.29 (10/4/22 Post) 

New Average cost per share this account: $35.82 (15 shares)

Dividend: Quarterly at $.42 per share ($1.68 annually), last raised from $.39 shares effective for the 2022 third quarter payment. 

CFG Dividend History | Nasdaq

Yield at AC = 4.69%

Last Ex Dividend: 11/1/22

Last Earnings Report (Q/E 9/30/22):  SEC Filed Press Release 

Comparisons are to the 2021 third quarter. 

Diluted Non-GAAP E.P.S. = $1.30, up from $1.22  

Non-GAAP E.P.S. excludes $.07 in expenses, consisting of 6 cents in merger related expenses and 1 cent in efficiency initiatives. In my Fidelity account, I received shares in CFG, and cash, as a result of its acquisition of Investors Bancorp (ISBC). Item # 3.I. CFG Completes the Acquisition of Investors Bancorp (ISBC) (4/14/22 Post)($1.46 per ISBC share in cash and .297 CFG share for each ISBC; AC per share Fidelity Account at $23.04) 

NIM: 3.25%, up from 2.72%

Underlying Efficiency Ratio: 54.9%, down from 59.5% (down is good)

NPL Ratio: .55%, down from .61%

Charge off Ratio: .19%, up from .14%

Coverage Ratio = 258%

Underlying ROTE: 17.9% 

K. Eliminated ABBV -Sold 1 ABBV at $145.84; 2at $144.13; and 1.506 at $144.46: 

Quote: AbbVie Inc.

ABBV  Analyst Estimates | MarketWatch

ABVV SEC Filings

Investor Overview | AbbVie

Pipeline - Our Science | AbbVie

Profit Snapshots:  +$181.01 (4.506 shares)

1 Share +$41.42

1+ Shares +$61.21

2 Shares +$78.38

Last Buy Discussion: Item # 1.G. Added to ABBV - Bought 1 at $103.25 (2/27/21 Post) 

Key Product Revenues 3rd quarter: 

The most important drug is Humira. AbbVie’s Humira Patent Portfolio Not an Antitrust Violation (9/2/22). The principal patent expired in 2016 but ABBV created a patent thicket (132 of them) that made it difficult to launch generic biosimilars. 

There are patent settlements that allow for U.S. biosimilar sales starting in 2023, though I am unclear whether there are limits and what those limits may be next year or over time. {E.G. Samsung Bioepis and Organon Announce FDA Approval of Citrate-Free High-Concentration HUMIRA® Biosimilar HADLIMA™ (adalimumab-bwwd)} 

Management last projected a 45% decline in 2023 U.S. Humira revenues, plus or minus 10%. 

Analysts are predicting a drop off in Humira profits staring in 2023, with the average consensus E.P.S. currently at $11.72, down from $13.86 in 2022. 

My tendency is to gravitate toward short term ABBV senior unsecured debt, and reconsider the common stock purchases at a much lower price sometime in 2024 when the Humira issue has more clarity.  

Dividend: Quarterly at $1.48 per share, last raised from $1.41 effective for the 2023 first quarter payment

AbbVie Inc. (ABBV) Dividend History | Seeking Alpha

Last Ex Dividend: 10/13/22 at $1.41 per share

Next Ex Dividend: 1/12/23 at $1.48 per share

Last Earnings Report (Q/E 9/30/22):  

GAAP E.P.S. = $2.21, up 24.2%

Non-GAAP E.P.S. = $3.66, up 29.3%

Consensus non-GAAP E.P.S. at $3.57

GAAP to Non-GAAP Reconciliation: 

Revenues = $14.812B, up 3.3%

"Skyrizi net revenues were $1.397 billion, an increase of 75.4 percent on a reported basis, or 78.3 percent on an operational basis."

"Rinvoq net revenues were $695 million, an increase of 53.5 percent on a reported basis, or 59.3 percent on an operational basis."

Analyst Reports (available to Schwab customers): 

Morningstar (10/31/22): 2 stars with a $120 FV. Analyst believes investors are underestimating negative impact humira generic sales starting in 2023. 

S & P (10/31/22): 3 stars with a 12 month PT of $152, reduced from 4 stars and a $168 PT. Expects U.S. humira biosimilar sales to "significantly erode" revenues from that drug.  

Argus (8/23/22): Buy, lowered PT to $155 from $165.

L. Eliminated ONB  - Sold 10 at $19.72 in Fidelity Taxable and 10 in Schwab Taxable at $19.7: 

Quote: Old National Bancorp (ONB)

ONB Analyst Estimates

SEC Filings

Recent History Schwab Account: 

Fidelity Account Trade: 

Profit Snapshots: +$77.59

Fidelity 10 Shares + $40.24 

Schwab 10 Shares +$37.35

Last Buy Discussion: Item # 1.A. Bought 10 ONB at $15.97 (9/3/2021 Post) 

Dividend: Quarterly at $.14 per share, last raised from $.13 effective for the 2020 first quarter payment.  

Old National Bancorp- Dividends

The quarterly dividend was cut from $.23 to $.07 effective for the 2009 second quarter payment and was raised from $.07 to $.09 in the 2021 first quarter. 

I view the dividend history unfavorably and will consequently limit my dollar exposure and will not hesitate to harvest profits, no matter how small.  

Last Ex Dividend: 8/31/22 (owned as of)

Last Earnings Report (Q/E 9/30/22):  SEC Filed Press Release 

Comparisons are to the 2021 third quarter. 

Investors responded favorably to this report.

GAAP E.P.S. = $.47, up from $.43

Non-GAAP E.P.S. = $.51, up from $.43

Consensus non-GAAP at $.50

GAAP to Non-GAAP Reconciliation: Mostly merger related expenses

ONB completed the all stock acquisition of First Midwest during the 2022 first quarter Old National and First Midwest Complete Merger of Equals

NIM: 3.71%, up 38 basis points. 

Adjusted efficiency ratio: 50.7%, down from 55.38%. 

NPL Ratio: .81%, down from .94%

Charge off ratio: .1%, up from net recovery of .09% 

ROTE: 20.5%, adjusted to 22.6%

ROE: 11.1%, up from 9.5%

ROA: 1.22%, up from 1.2%

Total Capital Ratio = 11.84%, down from 12.84%

 

Tangible Book value per share: $8.75, down from $11.83

Sell Discussions: Item # 1.H. Eliminated ONB-Sold 15 at $17.87 (2/13/21 Post); Item # 1 Sold 100 ONB at $13 (8/22/12 Post); Item # 1 Sold 50 ONB at $14.12 (7/16/13 Post); Item # 6 Sold 50 ONB at $13.05-Update For Regional Bank Basket Strategy As Of 6/6/16 - South Gent | Seeking Alpha; Item 2.A. Eliminated ONB-Sold 50 Shares at $18.55 (2/27/17 Post)(largest single gain at $312.97 bought at $12.25); Item # 4.A. Sold 10 ONB at $19.66 (7/29/18)

ONB Realized Gains to Date: $943.37

M. Pared FENY Again- Sold 5 at $24.88: 

Quote: Fidelity MSCI Energy Index ETF

Sponsor's website: FENY | ETF Snapshot - Fidelity

Expense Ratio: .08%  

Profit Snapshot: $43.84 (11/3/22 Sale Only)

New Average cost per share: $13.46 (55+ shares)

Snapshot Intraday on 11/3/22 after pare

Last 4 Dividend Payments: $.742 per share 

Yield at $13.46 and annual rate at $.742 = 5.51% 

Last Discussed:  Item # 6.D. Pared FENY - Sold 10 at $23.17 (11/1/22 Post) 

N. Added $50 FTKLX at $9.57: 

Quote: Fidelity Disruptive Technology Fund Overview 

Several of this fund's top 10 holdings are currently out of favor, including Amazon, Google and Salesforce. The 52 price range is between $9.45 to $21.46. 

Average cost per share: $12.17 (27+ shares) 

Fidelity® Disruptive Technology-Morningstar (YTD total return through 11/3/22 at -49.48%)

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.