AROW, CGBD, CTRA, DCOMP, FHB, FNB, HBNC, IGR, KIORT, GOOD, QCOM, STBA, SWASX, VLY

Economy: 

According to the BLS, the U.S. economy added 517,000 jobs in January. The consensus was 187,000. Employment Situation Summary - 2023 M01 Results 

The job additions for November and December were revised up by 71,000 combined.  

The unemployment rate was 3.4%- tying the lowest level from the 1950s. 

"In January, average hourly earnings for all employees on private nonfarm payrolls rose by 10 cents, or 0.3 percent, to $33.03. Over the past 12 months, average hourly earnings have increased by 4.4 percent."

Average work week: +.3 hour

U-6 Rate: 6.6%; Table A-15. Alternative measures of labor underutilization - 2023 M01 Results

Historical U.S. nonfarm job increases: 

In Thousands, Seasonally Adjusted

Bureau of Labor Statistics Data

2021 had the best job growth in U.S. history at 7.27M. 

2022 had the second best job growth number at 4.81M. 

As expected, the Fed raised the FF rate by .25% last week. The new range is 4.5% to 4.75%. The Fed indicated that more increases will be needed: "The Committee anticipates that ongoing increases in the target range will be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2 percent over time."

Notwithstanding that statement, the Bond Ghouls continue to tell the FED that increases mean one more .25% increase.  CME FedWatch Tool - CME Group 

U.S. credit card debt jumps 18.5% in the 2022 4th Quarter and hits a record $930.6 billion

The ISM services index surged to 55.2 in January driven by new orders rising to 60.4 from 45.2 in December. Services PMI® at 55.2%; January 2023 Services ISM® Report On Business®

Nonfarm productivity increased at a 3% annual rate in the 4th quarter. Fourth Quarter and Annual Averages 2022, Preliminary - 2022 Q05 Results Increases in productivity tend to restrain inflation. 

Needless to say, all of the foregoing data points are inconsistent with an ongoing recession or one about to start.  

Apple Posts a Rare Miss on Earnings and Revenue | Morningstar

+++

Allocation Shifts Discussed in this Post: 

I am eliminating several small ball positions. Where I own a few shares of a stock in several accounts, I am eliminating positions in all but one account. This is more house cleaning than anything else. I have also sold some positions that have crept back into profit territory where I have been disappointed by recent earnings reports.   

Treasury Bills at Auction: +$5,000 (partial use of $15K in redemption proceeds received last week in T Bill redemptions) I do not net out treasury purchases and redemptions in this section. I have $217,000 in principal amount of treasury bills and notes that will mature between 2/15/23 to 12/31/23. Almost all of the proceeds will be redirected into treasury bills purchased at auction. The income generated by those purchases, which I would roughly estimate at a 4.5% weighted average, will be higher than the income generated by the treasuries maturing in 2023 that are currently owned. 

Tennessee Municipal Bonds: -$5,020 ($10K in redemption proceeds minus $4,980 purchase)

Individual Common Stocks: - $2,606.68

(consisting of $2,782.68 in proceeds minus $176 in a 5 share purchase)

Stock Mutual Fund and Stock CEFs: -311.71

Net Outflow Individual Stocks and Stock Funds: -$2,643.57

Realized Gains Common Stocks and Funds: +$815.35

Corporate Bonds: +$1,000 in principal amount  

Non-Cumulative Equity Preferred Stock: -$549.54 (DCOMP sales)

Realized Gain Non-Cumulative Equity Preferred Stock: +$47.55

+++

Putin and his Servile Orcs: 

Russian army officer admits that troops tortured Ukrainian soldiers - BBC News - YouTube

U.S. 'On the Verge' of War With Russia—Deputy Foreign Minister

Russia's Airborne Forces Lost 50% of Personnel, Ex-Kremlin Official Admits

Soaring Russian Death Toll in Ukraine Gives Grim Insight Into the War - The New York Times

Video shows scene in the ‘eye of the storm’ of Russia’s invasion - YouTube

Vladimir Putin Believes It's 'His Destiny' To 'Recreate' Russian Empire

Sergei Lavrov Accuses U.S. of Nord Stream Pipeline Attack  

Top Russian Diplomat Sergei Lavrov Threatens Moldova is ‘The Next Ukraine’ I do view it likely that Russia will invade that independent country at some point, which will also directly threaten Romania. When that invasion occurs, Russia will claim that it is necessary to protect the Russian speaking population from Nazis. Moscow has already carved out part of Moldova as a "separatist" region that operates independently of the central government. 

Russia probably intended to extend its Southern Ukraine invasion through Odessa (and all of western Ukraine) as well as capturing all of  Moldova. That effort, however, was stopped by the Ukrainian Army near the city of Mykolaiv, at least for now. Southern Ukraine campaign - Wikipedia

+++

Trump and His Party: 

New video shows Trump pleading the Fifth 400 times during Letitia James' deposition | Daily Mail Online; WATCH: Trump pleads the 5th in deposition for New York attorney general’s office | PBS NewsHour Don the Con, the leader of the republican party, once said that only mobsters took the 5th. Sure, invoking the 5th is a constitutional right and a judge will instruct a jury that no adverse inference should be drawn from the exercise of that constitutional right. However, as a practical matter, an honest person who has done nothing wrong would have no reason to invoke the privilege against self incrimination. Donald is IMO taking the 5th in order to avoid choosing between 2 bad alternatives: perjury or incriminating himself with truthful answers. 

Approximately 46% of republican voters currently have Trump as their preferred Presidential candidate in the 2024 primaries. RealClearPolitics - Election 2024 - 2024 Republican Presidential Nomination I would assume that includes the 81% of republicans who view Donald as honest. 6/18/20 - -Quinnipiac University Poll (Question 11)

Last week, Don the Authoritarian said he still trusted Putin more than the lowlifes at the FBI. Donald Trump Says He Trusts Putin More Than U.S. Intelligence 'Lowlifes'

In another statement last week, Delusional Don claimed he could end the war in Ukraine, assuming he was President, in just 24 hours. Unfortunately, he refused to convey how this could be done. Donald Trump Says He Knows How to “Immediately” End the War in Ukraine but Must Keep It to Himself | Vanity Fair

Donald claimed Biden was weak for failing to shoot down the Chinese balloon while he was over land. The Chinese balloon traversed U.S. territory 3 times while he was President. F-22 Safely Shoots Down Chinese Spy Balloon Off South Carolina Coast -Defense Department News ("The official said Chinese balloons briefly transited the continental United States at least three times during the prior administration.") 

In Debt Limit Fight, Republicans Won’t Say What Spending Cuts They Want - The New York Times  

'I've learned my lesson': Santos speaks out amid calls for resignation | CNN Politics George Santos for 'sincere' apology He is sticking to his story that he embellished his resume a bit.  

Santos inexplicably cast himself as (failed) Broadway producer: Bloomberg - YouTube

In his campaign disclosure forms filed with the FEC, Santos previously claimed that he had lent his campaign $500,000 from personal funds. He has now amended that statement to admit that was not true. Some donors identified in those FEC files have been contacted by news outlets and deny that any contribution was made by them including a Santos relative.  George Santos now says campaign loan wasn't from personal funds; George Santos Relative Says They Never Gave $5,800 Reported by the Campaign: “I’m Dumbfounded” – Mother Jones

PolitiFact | $5.1 billion for one school’s diversity program? Marjorie Taylor Greene is wrong Her claim is so obviously absurd that only an idiot would make it. 

Representative Jodey Arrington (R-TX): The Biden administration had seized “control of the means of production” from private industries. “God have mercy on our country!” The House Republican majority uses its power to stoke paranoia - The Washington Post

Republicans in Tennessee want to rename the "John Lewis Way" street in downtown Nashville the "President Donald Trump Boulevard".  

++++

1. Tennessee Municipal Bonds: 

A. Bought 5 Harpeth Valley Utility District 3% Coupon Maturing on 9/1/2030 at a Total Cost of 99.6: 

Emma Page

Credit Ratings: AA+ by S&P

Tax Free Current Yield at TC = 3.012%

Official_Statement (similar to a corporate bond prospectus)

Optional Call: On or after 9/1/23 at par + accrued and unpaid interest.  

Tax Equivalent Yield Calculator

I lost 5 Harpeth Valley Utility District 4% revenue bonds to an early redemption on 9/1/22: 

It is currently uncertain whether the issuer will call the 2030 bond on 9/1/23, given its lower coupon, but that is certainly a possibility which is one reason why I would only buy now at below par value.  

I also own 5 Harpeth Valley Utility District 3.25% bonds that were bought at a 90.07 TC during a temporary price meltdown on 3/23/20. Item # 6.A. (3/28/20 Post)(current tax free yield of  3.61%; optional redemption on or after 9/1/2025)

B. Early Issuer Redemption - 10 Rutherford County Water 3.125%:  

The bond would have matured in 2031. It was redeemed on the first day permitted in prospectus which was 2/1/23. Call protection for municipal bonds that I own generally extends for 10 years after issuance and then can be called at par value + accrued and unpaid interest. 

$10,000 in principal at par value 

Interest = $156.25 Tax Free

When I bought that bond on 5/5/2017, this AAA rated tax free bond had a significantly higher current yield than the 10 year treasury: 

Treasury Yield Curve 5/15/2017: 10 year at 2.36%; 20 year =2.73% 

This bond was purchased at a total cost of 101.151, which includes a $10 commission. The current yield was 3.09% based on my TC. Item # 1.A. (6/5/2017 Post) 

Almost all of the municipal bonds were purchased in 2017 when the current  yields were higher than the comparable maturity treasuries. 

The fact that a AAA rated municipal bond had a better current yield than a treasury does not mean that either that muni bond or the treasury are good purchases for a particular investor, but only that the muni bond that pays tax free interest is a better alternative than the comparable maturity treasury that pays taxable interest. 

I am not able to find a AA or higher rated Tennessee municipal bond that has a higher current yield than a comparable maturity treasury. The purchase of the Harpeth Valley Utility District bond, discussed above, is as close as I could get and at least provides a similar yield and maturity to the AAA Rutherford County Water bond that was redeemed early.  

2. Small Ball Sells: 

A. Eliminated CTRA in 2 Taxable Account - Sold 10 at $25.17 and 5 at at $25.41:

Schwab Account

Vanguard Account 

Quote: Coterra Energy Inc.

Proceeds: $378.77

CTRA SEC Filings

Website: Coterra Energy

CTRA is primary a natural gas E&P. The price for natural gas has fallen significantly staring in August 2022 in response to warmer winter weather. The U.S. price was near $9 per MMBtu and is currently hovering around $2.85 as of 2/3/23. Natural Gas Prices - Historical Chart | MacroTrends

Another issue for CTRA involves a concern about profitability due to lower production volumes from what is called the Lower Marcellus. 

CTRA was formed through the merger of Cimarex and Cabot Oil, both publicly traded companies. Cabot Oil & Gas and Cimarex Energy Complete Combination, Forming Coterra Energy (10/1/21)

Profit Snapshots: +$95.4

I am keeping for now the 20+ shares held in my Fidelity taxable account and will consider buying shares when a purchase reduces my average cost per share in that account. To purchase more shares, however, I will need to see much better natural gas prices with a clear dominant upward trend. I currently own 21+ CTRA shares in that account with a $20.48 average cost per share. 

Last Discussed: Item # 2.C. Pared CTRA in Fidelity Account - Sold 5 at $23.83 (3/10/22 Post)(profit snapshot = $10.15) 

Buy Discussion: Item # 2.J. Started CTRA in Fidelity Taxable Account - Bought 5 at $21.53; 2 at $21.1; 2 at $20.75;  2 at $20.4; 2 at $20 and 1 at $19.56 (12/10/21 Post)

Dividend: CTRA is one of the energy producers that pay both a regular and variable dividend. The regular quarterly dividend is $.15 per share. The variable dividend is based on free cash flow. The general policy is to pay out 50%+ of free cash flow through the base and variable dividend framework. The total dividend amount will be trending down in 2023 compared to 2022. 

2022 Fixed and Variable Rate Dividends: $2.49 per share. 

Coterra Energy - Dividend History

Last Earnings Report (Q/E 9/30/22): Coterra Energy - Coterra Energy Reports Third-Quarter 2022 Results, Announces Quarterly Dividend and Provides Update on Share Repurchase Program

Net Income = $1.196B

E.P.S. = $1.51

Non-GAAP E.P.S. = $1.42

Free Cash Flow = $1.064B

Total Production:    

Average Sale Prices (excluding hedges): 

Proved Reserve Update: Negative

B. Pared GOOD in Fidelity Taxable Account - Sold 8 at $16.69: 

Quote: Gladstone Commercial Corp. (GOOD)

Proceeds: $133.48

2021 Annual Report (risk factor summary starts at page 16 and ends at page 31)

GOOD SEC Filings

Properties 

Website: Gladstone Commercial Corporation 

Investment category: Equity REIT Common and Preferred Stock Basket Strategy

Management: External

Last Buy Discussions: Item # 2.J. Added 2 GOOD at $13.35 (5/30/20 Post); Item # 3.G. Bought 10 GOOD at $16.7; 10 at $16.4; 10 at $16; 10 at $15.7; 5 at $14.2, 5 at $13.6, 5 at $12.8; 5 at $12.1, 2 at $11.4, 2 at $10.85 and 2 at $9.5 (4/11/20 Post)

Last Discussed: Item # 3.F. Pared GOOD - Sold 2.197 shares at $20.8  and 2.352 shares at $20.84 (6/4/21 Post) I profitably eliminated all shares bought with dividends and turned off dividend reinvestment.  

As with other externally managed REITs, the external manager is paid a base and an incentive fee. I would generally classify those payments as generous given the results. 

In the 2022 third quarter, GOOD paid the external management company a $1.6M base management fee and a $1.5M incentive fee. Other fees are also payable including a fee for profits realized on property sales. 10-Q for the Q/E 9/30/22 at pages 9-11 and pages 32-34  

GOOD is primarily a net lease REIT. Tenants under a net lease agreement are generally required to pay for maintenance expenses, insurance and property taxes. There is very little effort IMO made by external management companies when managing net lease properties. 

Profit Snapshot: +$14.77

ROC adjustments to the tax cost basis contributed to the profit, but I did not do a calculation. The profit will increase some due to the 2022 ROC adjustment which has not yet been made. Tax History-Gladstone Commercial Corporation (GOOD) 

Average cost per share before pare this account: $12.11 (58 shares), reduced by ROC

Average cost per share after pare this account: $11.68 (50 shares), reduced by ROC. 

Snapshot Intraday on 1/26/23 after pare

Dividend: Monthly at $.10 per share, recently reduced from $.1254 per share. 

SEC Filing "In an effort to increase retained capital in anticipation of further economic headwinds, the board of directors has taken what it believes is the prudent path and reduced the run rate on its monthly dividend (from $0.1254 to $0.10). In addition, and in support of the capital preservation effort, the Company’s investment adviser has agreed to amend the current Advisory Agreement to waive the applicable incentive fee for the quarters ending March 31, 2023 and June 30, 2023."

The company did not cut the dividend during the pandemic period. Dividend History 

A significant part of the debt is based on spreads to SOFR which will increase interest expense costs in 2023 compared to 2022 and earlier years. 

Yield after Dividend Cut and New AC this account = 10.27%

Next Ex Dividend: 2/16/23

Last Earnings Report (Q/E 9/30/23): SEC Filed Press Release

FFO per share:  $.43

Core FFO per share: $.44

Properties: 137 

Square Feet Leased: 96.9%

The company will need to amend this statement contained in this earnings press release and prior ones: "Gladstone Commercial has never skipped, reduced or deferred a distribution on its common stock . . ." 

Other Sell Discussions: Item 1.M. Pared GOOD-Sold 12 at $18.72 and 10 at $19.76 (6/20/20 Post); Item # 1.C. Eliminated GOOD in Schwab Account-Sold 50+ at $20.88 and Item # 1.D. Sold Highest Cost GOOD Share in Fidelity Account at $21.36 (3/3/19 Post)

GOOD Realized Gains to Date: $260.48

Other Common Stock Positions in Taxable Accounts: 

Schwab: 21+ shares with Average Cost at $8.88 per share

I am currently reinvesting the dividend in my Schwab account.  

Vanguard: 16 shares with AC at $9.2 per share 

The preceding snapshot shows a typical trading pattern that routinely occurred in March 2020. 

Preferred Stock Position: I currently own 20 shares of  Gladstone Commercial Corp. 6.625% Preferred Series E (GOODN). Item # 5.B. Bought 10 GOODN at $19.45; 10 at $19.2(11/8/22 Post) Unlike the common stock, a cumulative preferred dividend can not be cut but only deferred after the cash common stock dividend is eliminated. 

C. Eliminated HBNC in Fidelity Account - Sold 15+ at $15.02: 

Quote: Horizon Bancorp Inc.  (HBNC)

I am keeping the shares currently owned in my Schwab account and will consider adding to that position when the purchase reduces my average cost per share which is currently at $10.28 (15 shares).

The reduction in my total HBNC position was primarily due to what I would characterize as a poor NIM as discussed below. 

Proceeds: $230.9

HBNC Analyst Estimates

HBNC SEC Filings

Investment Category: Regional Bank Basket Strategy

Profit Snapshot: +$73.45

Last Discussed:  Item # 1.C. Pared HBNC in Fidelity Account - Sold 5 at $17.02 ( Post)(profit snapshot = $31.09) 

Last Buy Discussion: Item # 1.K Added HBNC Fidelity Taxable Account-Bought 5 at $10.3; 2 at $9.9; 3 at $9.57 (10/10/20 Post) 

Dividend: Quarterly at $.16 per share.

Dividends

Last Ex Dividend: 1/5/23

Last Earnings Report (Q/E 12/31/22): SEC Filed Press Release 

Comparisons are to the 2021 4th quarter

E.P.S. = $.48, down from $.49

Consensus: $.51 pe Schwab

NIM: 2.85%; down from 2.87% (and it is noteworthy that the 2022 3rd quarter NIM was at 3.04%)

Efficiency Ratio: 60.06%, down from 61.77%. I view this ratio as barely okay. 

NPL Ratio: .52%, unchanged

Charge off ratio: .01%, down from .04% (excellent IMO)

ROA:  1.09%, down from 1.14%

ROE: 12.72%, up from 11.81%

Total Capital Ratio: 13.59%

Tangible Book Value per share = $11.59

I do not have access to any analyst reports. I did note that there were 2 broker PT downgrades in response to this earnings report. Raymond James reduced its PT to $18 from $19 and Keefe, Bruyette & Woods reduced its PT to $16 from $17. 

D. Eliminated HBNC in Vanguard Taxable Account - Sold 20 at $15.05: 

Proceeds: $301.09

See Item # 1.C. Above. 

Profit Snapshot: +$96.4

HBNC Realized Gains to Date: $676.15

Other Prior Sell Discussions: Most of the gain was realized in 2012. 

Item # 2 Sold 60 HBNC at $24.96 (4/30/12 Post)(profit snapshot = $429.68)(sales price unadjusted for subsequent stock splits, see below); Item # 3.C. Sold Highest Cost HBNC Lots-10 at $14.25; 5 at $14.8 (12/5/20 Post)(profit snapshot = $46.53) 

Since I sold shares in 2012, HBNC has had three 3 for 2 splits: 

10/13/2012; 11/15/2016; 6/18/2018  

E. Eliminated Remaining FNB Shares - Sold 15+ at $14.33: 

Quote: F.N.B. Corp.

Proceeds: $221.45

Current Position: None

FNB SEC Filings

FNB Analyst Estimates | MarketWatch

Investment Category: Regional Bank Basket Strategy 

Profit Snapshot: +$117.17

Last Discussed: Item # 4.A. Eliminated FNB in Schwab Account - Sold 50+$13.045 and Item # 4.B. Eliminated FNB in Vanguard Taxable Account - Sold 57+ at $13.28 (1/10/23 Post)(profit snapshots = $651.75) 

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)

Dividend: Quarterly at $.12, unchanged since it was slashed from $.24 in 2009. F.N.B. Corporation (FNB) Dividend History | Seeking Alpha

Dividend History: Extremely unfavorable IMO. 

Last Earnings Report (Q/E 12/31/22): SEC Filed Press Release 

As discussed in my recent posts, FNB is finally reporting better results and is experiencing some E.P.S. growth compared to a long period of lackluster results. I am not a fan given my long history with this stock but recognize the improved results.   

Comparisons are to the 2021 4th Q. 

GAAP Net Income = $137.5M, up from $96.5M

GAAP E.P.S. = $.38, up from $.30 

Non-GAAP E.P.S. = $.44, up from $.30 

Reconciliation GAAP to Non-GAAP: Mostly acquisition related expenses

NIM = 3.53%, up from 2.55% 

Efficiency Ratio: 45.82%, down from 58.1%

NPL Ratio: .37%, up from .35%

Charge off Ratio: .16%, up from .02%

ROE: 10.04%

ROTE: 18.78%

Tangible Book Value per share  = $8.27

FNB Realized Gains to Date: $2,597.58

I also eliminated the remaining shares in Roth IRA accounts. The realized gain total for FNB includes RI trades. 

My Consider to Repurchase Some Shares as a Trade: <$10

F. Eliminated FHB in Vanguard Taxable Account - Sold 8 at $26.99: 

Quote: First Hawaiian Inc. (FHB)

Proceeds: $216.04

Investment Category: Regional Bank Basket Strategy

Profit Snapshot: +$26.9

Last Discussed: Item # 5.D. Pared FHB in Schwab Account - Sold 10 at $27.14 (1/16/23 Post)(profit snapshot = $46.05); Item # 4.C. Pared FHB in Fidelity Taxable Account - Sold 5+ at $26.355 (1/10/23 Post)(profit snapshot = $18.33) 

I still own low cost FHB shares in my Schwab and Fidelity accounts and currently plan to liquidate the position in one of those accounts when the price exceeds $30 as discussed in the 1/16/23 post linked above.  

Last Buy Discussion: Item # 6.E. Added 3 FHB at $22.74 (7/6/22 Post)

Dividend: Quarterly at $.26, last raised from $.24 effective for the 2019 third quarter, which I view as a negative. 

Next Ex Dividend: 2/16/23

Last Earnings Report (Q/E 12/31/22): SEC Filed Press Release 

Comparisons are to the 2021 4th quarter. 

E.P.S. = $.62, up from $.44

Consensus: $.583 per Fidelity

NIM: 3.15%, up from 2.38%

Efficiency Ratio: 51.47%, down from 60.5% (down is good)

NPL Ratio: .08% (excellent)

Charge off ratio: .1% (excellent)

ROA = 1.28%

ROE = 14.27%

ROTE = 25.93%

Total Capital Ratio: 12.92%

Tangible Book Value per share = $10

FHB Realized Gains to Date: $616.88  

G. Pared IGR in Fidelity Taxable Account - Sold 10 at $6.69: 

Quote: CBRE Clarion Global Real Estate Income Fund Overview

Proceeds: $66.94

Investment Category: Monthly Income Generation 

Leveraged: Yes, at close to 30%. 

IGR SEC Filings

SEC Filing-Positions as of 9/30/22 

CBRE Global Real Estate Income Fund (SEC Filed semiannual report for the period ending 6/30/22) At page 30, the fund notes that it borrows at a .75% to the federal funds rate.  

Sponsor's website: Global RE Income Fund - CBRE

Profit Snapshot: +$8.17

Last Buy Discussions: Item # 1.D. Added to IGR-Bought 10 at $5.79; 5 at $5.59 (11/21/20 Post); Item # 1.E. Added 5 IGR at $3.75; 50 at at $5.69; and 10 at $5.1 (5/16/20 Post)

Last Discussed:  Item # 2.H. Pared IGR - Sold 2 at $9.09 (8/27/21 Post) 

New Average cost per share this account: $5.1 (170 shares)

Snapshot Intraday on 1/27/23 after pare

Dividend: Monthly at $.06 per share ($.72 annually)

Yield at New AC = 14.12%

Last Ex Dividend: 1/20/23

Data Date of 1/27/23 Trade: 

Closing Net Asset Value per share: $7.2

Closing Market Price: $6.74

Discount: -6.39%

Average Discounts: 

1 Year:    -5.38%

3 Years:  -9.94%

5 Years: -11.11%

Sourced: IGR-CEF Connect (click "Pricing Information" tab)

I am more likely to trim a CEF when the discount to net asset value falls significantly below the 5 year average. 

2021 Sell Discussions: Item #3.H. Sold All IGR Shares Purchased with Dividend (6/12/21 Post)(profit snapshot = $49.1); Item # 1.R. Sold 42+ IGR at $8.1  (4/17/21 Post)(profit snapshot = $43.23); Item # 1.A. Pared IGR-Sold 100 at $7.64 (4/9/21 Post)(profit snapshot = $63.6) 

Other Prior Sell Discussions: Item # 1. I. Eliminated IGR Vanguard Account-Sold 100 at $5.95 and Eliminated IGR in Schwab Account-Sold 100 at $5.96 (6/13/20 Post) (profit snapshots = $113.32); Item # 1.C. Sold 9 IGR at $8.33 (2/19/20 Post)(profit snapshot = $4.99); Item # 2.A. Sold 100 IGR at $8.01 (12/28/19 Post)(profit snapshot = $42.98); Item # 1 Sold 283 IGR at $7.89+ (8/24/13 Post)(profit snapshot on all 2013 sales = $77.62)

H. Eliminated CGBD in Vanguard Taxable Account - Sold 10 at $15.1: 

Quote: TCG BDC Inc.

I still own shares in my Schwab and Fidelity accounts. 

Proceeds: $151.1

CGBD SEC Filings

Management: External 

Profit Snapshot: $65.6

Last Discussed: Item # 2.E. Pared CBGD in Fidelity Taxable Account - Sold 25+ at $14.46 (3/24/22 Post)(profit snapshot = $31.09) This pare reduced my average cost per share to $12.58 (98+ shares) that were bought between and $ .

Dividend: Quarterly at $.34 per share (regular only referred to by company as the "base dividend") Supplemental dividends of $.06 and $.08 per share were paid in the 2022 third and 4th quarters respectively. 

Net Asset Value per share history: 

9/30/22 :  $17.16

12/31/21:  $16.91

12/31/20: $15.39

12/31/19:  $16.56 

12/31/18:  $18.12  

6/30/17:   $18.01

The Initial Public Offering was in June 2017. The public offering price was $18.75. The external advisor paid 50% of the $.56 per share underwriters' discount. Prospectus 

CGBD's offering expenses were then estimated at $1.8M or approximately $.20 per share. 

After those net expense items, the net proceeds to the BDC were about $18.27 per share. 

Last Ex Dividend: 12/29/22

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

NII per share of $.58 per share which included a one time addition of $.14 per share resulting from returning CBGD's loan to accrual status. 

The weighted average yield of debt investments at cost has been rising due to the rapid rise last year in short term rates. The yield at cost was at 10.12% as of 9/30/22 and at 7.22% as of 3/31/22 (page 5). 

As of 9/30/22, 2 loans were on non-accrual 1.9% of investments at fair value and 2.3% at amortized cost. 

CBGD Loan Risk Ratings: 

I. Eliminated DCOMP in Schwab -Sold 10 at $22.3: 

History this Account: 

Quote: Dime Community Bancshares 5.5% Non-Cumulative Preferred Series A Stock Overview

I still keeping the 50 shares owned in my Fidelity account. The average cost per share in that account is $20.09 which creates a current dividend yield of 6.84%.

Proceeds: $222.99

Issuer: Dime Community Bancshares Inc. (DCOM) - a bank holding company. 

DCOM SEC Filings 

DCOM SED Filed Earnings Press Release for the Q/E 12/31/22 (2022 net income of $145.3M or $3.73 per diluted share) 

I have a position in the common shares. 

Profit Snapshot: +$22.67

Last Discussed:  Item # 2.A. Pared DCOMP in Fidelity Account - Sold 30 out of 80 at $25.8 (1/9/21 Post)(profit snapshot = $170.45) 

Last Buy Discussion: Item # 2.A. Bought 10 DCOMP at $20.68; 10 at $20.3 ; 5 at $20.26; 5 at $20.09; 70 at $20.09 (8/1/20 Post)

Security: Prospectus

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

Par Value: $25 

Dividends: Non-Cumulative and Qualified, Paid Quarterly (off hand, I do not recall a cumulative equity preferred stock issued by a bank holding company) Some bank holding companies have issued what is called "Trust Preferred" securities that are in effect junior bonds. Most of those have been called. Trust Preferred Securities: Links in One Post 

Stopper Clause: Standard for equity preferred stocks (see pp. S-16 and S-17 of the prospectus). This clause requires the issuer to eliminate the common stock cash dividend before eliminating the non-cumulative preferred stock dividend. In addition, the issuer can not use cash to buy common shares after eliminating the non-cumulative preferred stock dividend. The company can pay a share dividend and pay cash for fractional shares created thereby after eliminating the preferred dividend. The Stopper Clause enforces the preferred stocks superior claim to cash vs. only the common stock. 

Next Ex Dividend: 2/7/23 

Issuer Optional Call Date: At par plus accrued and unpaid dividends on or after 2/15/25

Other Sell Discussion: Item # 2.B. Sold 10 DCOMP at $21.14 and 10 at $22.06-Highest Cost Lots Fidelity Taxable Account (9/5/20 Post)(profit snapshot = $26.23)

Goal: Dividend plus 2%+ annual realized gain on the shares. 

J. Eliminated DCOMP in Vanguard Taxable Account - Sold 15 at $21.77: 

See Item #1.E. above. 

Proceeds: $326.55

Profit Snapshot: +$24.88

DCOMP Realized Gains to Date: $244.23

K. Eliminated AROW in Schwab Account - Sold 10 at $32.7:  

Quote: Arrow Financial Corp.  (AROW)

Proceeds: $326.99 

Investment Category: Regional Bank Basket Strategy

AROW SEC Filings

AROW Analyst Estimates | MarketWatch

Profit Snapshot: $73.47

Last Discussed: Item # 4.D. Added to AROW in Fidelity Taxable Account - Bought 5 at $29.9 (10/11/22 Post) 

Dividend: Quarterly at $.27 per share

Share Dividend: AROW has paid stock dividends in the past. The more recent ones have been 3% stock dividend. AROW Split History; Arrow Financial Corporation Declares Stock Dividend Since I have not owned enough shares to receive 1 share share, the fractional share would be liquidated into cash 

Last Cash Ex Dividend: 11/30/22

Last Earnings Report (Q/E 12/31/22): SEC Filed Press Release 

Comparisons are to the 2021 4th quarter. 

E.P.S. = $.73, up from $.62

Consensus at $.80

2022 Annual E.P.S. at $2.95, down from $3.01 in 2021

NIM: 3.11%, up from 2.8%

Efficiency Ratio: 54.63%, down from 59.09%. 

NPL Ratio: .4%, down from .44%

Charge off ratio: .08%, up from .03%

Coverage Ratio: 249.95%

ROA = 1.21%

ROE = 13.55%

Tangible Book Value per share = $19.95

Total Capital Ratio: 15.11%

Loan to Deposit Ratio: 83.49%

L. Eliminated AROW in Vanguard Taxable Account - Sold 5 at $33.15: 

See Item #1.J. above. 

Proceeds: $165.75

Profit Snapshot: +$48.4

AROW Realized Gains to Date: $869.56

Most of the gain was realized in 2018: Item # 1. Sold 52+ AROW at $37.5 (7/2/18 Post)(profit snapshot = $661.34)

M. Eliminated VLY in Fidelity Taxable Account - Sold 15+ at $11.76: 

Quote: Valley National Bancorp  (VLY)

Proceeds: $186.8

Investment Category: Regional Bank Basket Strategy

VLY | Valley National Bancorp Analyst Estimates

VLY SEC Filings

Profit Snapshot: +$67.81

Last Discussed: Item # 1.K. Added to VLY - Bought 5 $6.79 (7/25/2020 Post);  Item # 1.I. Restarted VLY-Bought 10 at $7.66 (6/6/20 Post) This stock only becomes slightly attractive to me when the price is below $8. 

Dividend: Quarterly at $.11 per share, last cut from $.1625 effective for the 2014 first quarter payment and not raised since that slash. 

Valley National Bancorp (VLY) Dividend History | Seeking Alpha  

The dividend history is extremely poor IMO. 

Last Ex Dividend: 12/14/22

Last Earnings Report (Q/E 12/31/22): SEC Filed Press Release 

Comparisons are to the 2021 4th quarter. 

E.P.S. = $.34, up from $.27

Non-GAAP = $.35, up from $.29

Consensus Non-GAAP: $.36 per Schwab

NIM: 3.57%, up from 3.23%

Efficiency Ratio: 49.3%, down from 49.44%

NPL Ratio: .57%, down from .70%

Charge off ratio: .19%, up from a net recovery of .01%

ROA = 1.29% (adjusted)

ROE = 11.56% (adjusted)

ROTE = 17.2% (adjusted)

Most of the adjustment relates to merger related expenses. 

Tangible Book value per share: $8.15

Total Capital Ratio = 11.63%

I do not have access to any VLY analyst reports. 

I am aware that 4 brokerage firms cut their price target in response to this report: 

Morgan Stanley: PT to $13 from $14

JPM: PT to $11.5 from $12

Piper Sandler: PT to $13 from $14

Raymond James: PT to $15 from $16

N. Eliminated VLY in Vanguard Taxable Account - Sold 15 at $11.75: 

Proceeds: $176.32

See Item # 1.K. above 

Profit Snapshot: +$66.22

VLY Realized Gains to Date: $555.55 

Last Sell Discussions: Item # 1.A. Eliminated VLY-Sold 102+ at $10.51 (9/11/2019 Post); Item # 2.A. Eliminated VLY Sold 51+ VLY at $12.76 (7/25/18 Post); Item # 2.B. Sold 60 VLY at $12.52 (1/28/18 Post)

Current VLY Position: 25+ shares in my Schwab account with an AC per share of $7.36 and a constant yield at that AC of 5.98%: 

O. Eliminated SWASX - Sold 36+ at $6.62: 

Quote: Schwab Global Real Estate Fund Overview 

Proceeds: +$244.77

Profit Snapshot:  +$25.82

Eliminated due to poor performance and low dividend yield for a REIT fund. 

Last 4 Dividends: $.1829 per share/yield at $6.62 = 2.76%

SWASX – Performance – Schwab Global Real Estate | Morningstar

P. Eliminated QCOM - Sold 2 at $137.41: 

Quote: Qualcomm Inc.

Proceeds: $274.82

QCOM SEC Filings

QCOM  Analyst Estimates | MarketWatch

QCOM Key Metrics | Reuters

Investor Relations

Profit Snapshot: +$16.6

Last Discussed: Item # 2.F. Eliminated QCOM in Vanguard Taxable Account - Sold 4 at $131 (1/30/23 Post)(profit snapshot = $33.81); Item # 1.I. Bought 2 QCOM at $126,49; 1 at $123.2 in Vanguard Account; 2 at $129.11 in Schwab Account; and Sold 1 in Fidelity Account at $166.5 (11/11/21 Post)(profit snapshot = $43.61) 

Dividend: Quarterly at $.75 per share

Dividend/Split History

Next Ex Dividend: 3/1/23

Last Earnings Report (F/Q ending 12/25/22): SEC Filed Press Release This is QCOM's first fiscal quarter. 

This report was released after I eliminated the position. 

GAAP E.P.S. at $1.98, down from $2.98

Non-GAAP E.P.S. = $2.37, down from $3.23

Consensus Non-GAAP E.P.S. at $2.34 

GAAP to Non-GAAP Reconciliation: Share based compensation is the major item at $.44 per share. 

2023 Second Fiscal Quarter Guidance: Below consensus

2021-2022 QCOM Realized Gain:  $94.02 (7 shares)

Possible Repurchase: Less than $120. The previous plan discussed in my last post was to hold onto the 2 shares and buy more when the purchase price would lower my average cost per share. I changed that plan to eliminating the 2 shares and restarting a position at a lower price based on concerns about the earnings report and guidance which had not yet been released.  

Q.  Sold all KIORT: 

"Rights" issue distributed by KKR Income Opportunities Fund (KIO) 

Proceeds: $19.17

Profit Snapshots: +$19.17

The right (similar to a warrant) is assigned a zero cost basis since it does not reduce the original cost basis of the shares. So the entire amount received is viewed as a tax profit or at least that is my current understanding. 

I discussed this security in a recent comment. I own shares of KIO, a CEF, in three taxable accounts. KIO distributed 1 "right" to buy 1 KIO share at an estimated price of $11.02.  SEC Filed Prospectus The right can be sold until it expires later this month. Since I had no intention of exercising the right to buy more KIO shares, far too much trouble, I sold them in all 3 accounts. 

3. Small Ball Buys: 

A. Started STBA - Bought 5 at $35.2: 

Quote: S&T Bancorp Inc. (STBA) 

Investment Category: Regional Bank Basket Strategy

This is my first purchase. 

STBA Analyst Estimates | MarketWatch

Dividend: Quarterly at $.32 per share

Yield at $35.2: 3.636%

Next Ex Dividend: 2/9/23

Last Earnings Report (Q/E 12/31/22):  SEC Filed Press Release 

Comparisons are to the 2021 4th quarter. 

E.P.S. = $1.03; up from $.57 

Consensus at $.94

NIM: 4.33%, up from 3.12%

Efficiency Ratio: 48.73%, down from 59.1%

NPL Ratio: .27%, down from .95%

Charge off ratio: .05%, down from 1.02%

ROA:      1.78%

ROE:    13.68%

ROTE:  20.35%

Tangible Book value per share = $20.69

Total Capital Ratio: 14.73%

4. Treasury Auctions: +$5,000

Using proceeds recently received from the $10K Rutherford County Water bond and $5K from a matured T Bill, which currently earn .45% in my Schwab sweep account, I will be participating in Monday's 3 month T Bill auction and the 4 month T Bill auction next Wednesday.

The Vanguard Federal MM fund, VMFXX, which I use as the sweep account in my Vanguard taxable and RI accounts, currently has a 7 day SEC yield of 4.4% and somewhat higher when compounded. 

A. Bought 5 Treasury Bills at 2/2/23 Auction: 

56 Day Bill

Matures on 4/4/23

Interest: $35.04

Investment Rate: 4.6%

5. Corporate Bonds: +$1,000

A. Bought 1 Laboratory Corporation 2.3% SU Maturing on 12/1/24 at a Total Cost of 95.401: 

Issuer: Laboratory Corp. of America Holdings (LH) 

LH Analyst Estimates | MarketWatch

LH SEC Filings 

Finra Page: Bond Detail (prospectus linked)

Credit Ratings: Baa2/BBB

YTM at Total Cost: 4.953%

For comparison purposes, the 2 year treasury note closed at a 4.25% yield on 1/30/23. U.S. Department of the Treasury

Current Yield at TC:  2.41%

I now own 6. 

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.