ABBV, CET, CPB, CTO, DOW, EMP, FSCO, GMAB, HR, KHC, MGA, NTST, RITM, TSLX, WHR

Economy: 

The BLS reported last Friday that the economy added 227,000 jobs in November. "The change in total nonfarm payroll employment for September was revised up by 32,000, from +223,000 to +255,000, and the change for October was revised up by 24,000, from +12,000 to +36,000. With these revisions, employment in September and October combined is 56,000 higher than previously reported."

Average hourly earnings rose by 13 cents or of .4% to $35.61. Average hourly earnings rose 4% over the 12 months ending in November. The unemployment rate was 4.2%. The U-6 number rose .1% to 7.8%. Table A-15. Alternative measures of labor underutilization - 2024 M11 Results 

The increase in annual average hourly earnings is greater than the 2.7% annual CPI increase discussed below.   

Discussed at Jobs report November 2024.

The Fed is on course to cut interest rates in December, but what happens next is anyone's guess I am in agreement with some economists cited in this article that the FED needs to refrain from cutting rates again at the 12/18 meeting. 

The CPI inflation report for November released last Wednesday indicates IMO that inflation is still too high for another rate cut that the economy does not currently need IMO. 

The FED is nonetheless expected to cut the FF range by 25 basis points on 12/18. The odds are currently close to 100% using the CME FedWatch tool. CME FedWatch - CME Group

Earlier today, the European Central Bank lowered its benchmark rate .25% to 3%. 

November CPI Compared to October CPI: Consumer Price Index Summary - 2024 M11 Results

Annual CPI: 2.7%, up from 2.6%

Annual Core CPI:  3.3%, unchanged

Month-to-Month CPI: .3%, up from .2%

Month-to-Month Core CPI: .3%, unchanged

Table 2. Consumer Price Index for All Urban Consumers (CPI-U): U. S. city average, by detailed expenditure category - 2024 M11 Results (Owners equivalent rent, weighted at 27.093 in CPI, was up 4.9% over the 12 month period but the month-to-month increase declined to .2% from .4%)

The Fed Beige Book November 2024 "Economic activity rose slightly in most Districts. Three regions exhibited modest or moderate growth that offset flat or slightly declining activity in two others. . . . Consumer spending was generally stable. Many consumer-oriented businesses across Districts noted further increases in price sensitivity among consumers, as well as several reports of increased sensitivity to quality . .  Employment levels were flat or up only slightly across Districts. Hiring activity was subdued as worker turnover remained low and few firms reported increasing their headcount. The level of layoffs was also reportedly low. . . . Wage growth softened to a modest pace across most Districts, as did expectations for wage growth in coming months. . . . Prices rose only at a modest pace across Federal Reserve Districts. Both consumer-oriented and business-oriented contacts reported greater difficulty passing costs on to customers. Input prices were said to be rising faster than selling prices for most businesses, resulting in declining profit margins".

China's exports and imports miss expectations in November as economic worries deepen(12/9/24)

Who would pay for Trump's promised tariffs? You will! - CBS News (12/8/24) Trump claims that foreign countries will pay his tariff tax. The republicans have found a way for their supporters, who do not pay a federal income tax, to pay a federal tax that will be $1,000-$1,500 annually per household and they will not even know that Trump has imposed that tax on them. 

+++

Allocation Shifts Discussed in this Post: 

Treasury Bills Purchased at Auction: $25,000 in principal amount

Corporate Bonds: $10,000 in principal amount 

Outflow Common Stocks: -$166.71

(consisting of $1,209.84 proceeds minus $1,043.13 in purchases)

Outflow Stock Fund: -$94.08

Net Outflow Stocks/Stock Funds: -$260.79 

Outflow Loan/Bond CEF (FSCO): -$135.69

2024 Net Outflow Stocks/Stock Funds: -$69,361.09

The actual outflow will be several thousand dollars higher since I do not discuss all of my trades

November 2024 Treasury Yield Curve: 

November 2024 Treasury Real Yield Rates

Chart 10 Year Breakeven Inflation Rate: 10-Year Breakeven Inflation Rate -St. Louis Fed

Chart 5 Year Breakeven Inflation Rate: 5-Year Breakeven Inflation Rate -St. Louis Fed

++++

Miscellaneous Portfolio Matters: 

I am now taking the annual dividend paid by the Permanent Portfolio (PRPFX) in cash. 

$265.86

Taking mutual fund dividends in cash is an alternative to selling shares. 

I did reinvest prior annual dividends, including the one paid in 2023, see Item # 5.C.

I am not likely to buy more shares. 

This mutual fund will maintain close to a 25% allocation to gold and silver bullion (27.27% as of 7/31/24) and significant allocations to U.S. treasuries and investment grade corporate bonds. SEC Filed Semiannual Report for the period ending 7/31/24 at page 2. 

Realized PRPFX Gains to Date: $899.1 (snapshots in Item # 3.J)

Current PRPFX Position: 237+ shares with a $40.96 AC per share. 

*

FTS-PM.TO:  The Canadian reset equity preferred stock FTSPRM:CA, issued by the utility holding company Fortis, reset its coupon for 5 years at 5.493% paid on a C$25 par value. That coupon remains in effect until 12/1/29. The coupon resets every 5 years, unless called on the reset date, at a 2.48% spread to the Canadian 5 year government bond.  

The new annual dividend is C$1.37325 per share paid in quarterly installments. I own 200 shares with a C$16.01 average cost per share. The dividend yield is now at 8.58%. Item # 5.A. Added to FTSPRM:CA - Bought 50 at C$17.73 (3/6/23 Post);Item # 2.B. Bought 50 FTS.PRM at C$12.4 (5/23/20 Post); Item # 3.A. Bought 50 FTS.PRM at C$16.28 (3/14/20 Post); Item # 2.A. Bought 50 FTSPRM:CA at C$17.55 (11/23/2019 Post)

While the yield at my total cost is  satisfactory to me, I still have to consider the likely negative impact on price resulting from a persistent rise in intermediate term interest rates. This is not so much an issue when the next reset date is relatively close, 1 year or less, but is a total return issue when the last reset was a relatively low coupon for an equity preferred stock with several years until the next reset.  

*

Early Redemption of 4 Lazard SU notes: 

++++

1. Small Ball Buys: 

I am discussing below some small ball adds in packaged food stocks which have recently been poor investments due to a variety of headwinds including (1) a rapid rise in input cost inflation caused these companies to raise prices that hurt demand; (2) competition from lower cost private label brands that intensified as packaged food companies had to rapidly raise prices in 2021-2023 just to offset input cost increases, (3) more consumers avoiding packaged foods based on concerns about ingredients and (4) the more recent concerns that RFK Jr. will do something that will crack down of what these companies put in their products. 

General Mills Inc. (GIS) is my largest package food position, but I have knocked that down to 35 shares through selling my highest cost lots.  GIS responded early to health related concerns by moving into the organic food category and has rapidly increased its exposure to pet food and treats through a series of acquisitions starting with Blue Buffalo in 2018. General Mills Completes Acquisition of Blue Buffalo Pet Products (4/24/24). This is press release discussing the most recent acquisition: General Mills Advances Accelerate Strategy with Acquisition of Whitebridge Pet Brands’ North American Premium Cat Feeding and Pet Treating Business. Other acquisitions are listed in that press release

A.  Added to KHC - Bought 5 at $30.69: 

Quote: Kraft Heinz Co.

Cost: $143.45

KHC Analyst Estimates | MarketWatch 

KHC SEC Filings

Investment Category: Bond Substitute

New Average cost per share: $32.59 (45 shares)

Dividend: Quarterly at $.40 per share, slashed from $.625 effective for the 2019 first quarter payment. 

KHC Dividend History & Date

Yield at New AC: 4.91%

Last Ex Dividend: 11/29/24

Last Earnings Report (F/Q ending 9/28/24): I discussed this report here: Item # 2.C. Added to KHC - Bought 10 at $31 (11/27/24 Post); SEC Filed Earnings Press Release 

Last Sell Discussion: Item # 2.I. Eliminated Duplicate Position in KHC - Sold 6 at $35.48 - Fidelity Account (8/8/24 Post)

B. Restarted CPB with a 2 Share Buy at $42.71: 

Quote: Campbell Soup Co.

Cost: $85.42

Brands include Campbell's (soup), Cape Cod, Goldish, Kettle Brand, Lance, Pace, Pacific Foods, Pepperidge Farm, Prego, Rao's, Snyder's of Hanover and V8.  

CPB Analyst Estimates | MarketWatch

CPB SEC Filings 

CPB SEC Filed Annual Report for the F/Y ending on 7/28/24

Recent Major Acquisition: Campbell Completes Acquisition of Sovos Brands, Inc. The Savos Brands include pasta sauces, frozen entrees, frozen pizza and yogurts sold under the Rao's, Michael Angelo's, and noosa. In the August 2024, CPB notes the Savos brands reported $1B in sales for the year ending 12/31/23 representing a 25% organic increase. Rao's net sales accounted for most of the revenue with a 37% organic net sales increase to $775M. This was an all cash acquisition. 

Financing: Prospectus (March 2024)

CPB is in the process of selling the noosa yogurt brand which is expected to close in the 2025 first quarter. Campbell’s to Sell noosa Business to Lakeview Farms 

Another major acquisition was completed in 2018: Campbell Completes Acquisition of Snyder's-Lance 

Recent Divestiture: The most recent significant divestiture was to sell the Pop Secret popcorn brand which CPB expected to be dilutive to fiscal 2025 earnings by about $.04 per share. Campbell Sells Pop Secret Business to Our Home (8/26/24)

Last Discussed: Item # 1.I. Eliminated CPB - Sold 5 at $49.86 (5/19/22 Post)(profit snapshot =  $43.29)

Last Buy Discussion: Item # 1.D. Bought 2 CPB at $41.65; 1 at $40.4; 2 at $40.15 (11/11/21 Post)

Dividend: Quarterly at $.39 per share ($1.56 annually), last raised from $.37 effective for the 2025 first quarter payment. In the 2015 first quarter, the dividend was at $.312.  

CPB Dividend History | Nasdaq

Yield at $42.71: 3.65%

Next Ex Dividend: 1/2/25 

Last Earnings Report (Q/E 10/27/24): This is for the first fiscal quarter. 

SEC Filed Press Release 

Revenues: $2.772B, up from $2.518B, but down 1% on an organic basis. Revenues benefited from the acquisition of Savos Brands that was completed in March 2024. 

E.P.S. = $.72

Adjusted E.P.S. = $.89, down from $.91. 

GAAP to Non-GAAP 

Fiscal 2024 Actual Adjusted E.P.S. = $3.08

Adjusted E.P.S. Guidance for fiscal 2025: $3.12-$3.22 which includes a full year of the noosa yogurt sales

Other Sell Discussions: Item 3.B. Sold 5 CPB at $41.07 (8/26/18 Post)(profit snapshot $38.97); Item # 3 Sold 50 CPB at $41 (8/5/18 Post)(profit snapshot = $117.18); Item # 3 Sold 50+ CPB at $49.73+(11/20/17 Post)(profit snapshot = $43.21); Item # 3 Sold 70 CPB at $35.79 (9/8/2010 Post)(profit snapshot = $714.84) 

CPB Realized Gains to Date: $914.13  

Enthusiasm Level: Vaguely observable but intermittently present. 

I have profitably traded CPB so far but most of the profit was realized in a 2010 sell with the purchases during the 2009 market crash. 

I do not view CPB as a long term hold, as proven so far by a long term chart and meagre dividend growth over the past ten years. Note that I sold 50+ shares in 2017 at $49.73 and just bought 2 shares at $42.71.  

Other Recent SU note offerings: Prospectus 

I mention this note offering just to highlight that refinancing cost is at higher rates. 

Use of Proceeds Section: CPB intends to "use the net proceeds from the sale of the notes in this offering to repay existing indebtedness including, but not limited to, commercial paper, our 3.95% Senior Notes due March 2025 and our 3.30% Senior Notes due March 2025 (collectively, the “2025 Notes”) or the amounts outstanding on the delayed draw term loan credit agreement due November 2025 (the “DDTL Credit Agreement”) and for general corporate purposes."

Owned SU Bond: 2 of the 3.95% SU maturing on 3/15/25 which is referenced in the previous quote.

C. Added to NTST - Bought 5 at $15.7; 5 at $15.45: 

Quote: NetSTREIT Corp. (NTST) - Retail REIT 

Cost: $155.73

NTST SEC Filings

2023 SEC Filed Annual Report

New Average cost per share: $16 (30 shares)

Dividend: Quarterly at $.21 per share

Yield at $16: 5.25%

Last Ex Dividend: 12/2/24

Last Discussed: Item # 2.A. Started NTST - Bought 10 at $16.43; 10 at $16 (12/5/24 Post) I discussed the last earnings report in that post as well as my primary concern about this REIT.  SEC Filed Press Release 

D. Added to GSBD - Bought 5 at $13: 

Quote: Goldman Sachs BDC Inc. (GSBD)

Cost: $65

GSBD SEC Filings

Management: External  

SEC Filed 2023 Annual Report (Risk factor summary starts at page 29 and ends at page 63) 

Last Discussed: Item # 1.D. Added to GSBD - Bought 5 at $13.51 (11/4/23 Post) 

New Average cost per share: $13.71 (20 shares)

Snapshot Intraday on 12/9/24 after add

Dividend: Quarterly at $.45 per share ($1.8 annually)

GSBD Dividend History | Seeking Alpha

Yield at New AC: 13.13%

Next Ex Dividend: 12/31/24 (pay date on 1/27/24) 

Net Asset Value per share: I view this history as poor. 

9/30/24:  $13.54

12/31/23: $14.62

9/30/23: $14.61 (this was the last reported NAV when I made my last purchase at $13.51)

6/30/23   $14.59

3/31/23    $14.44  

12/31/22  $14.61

12/31/21  $15.92

12/31/20  $16.75

12/31/19  $16.75

12/31/18  $17.65

12/31/17  $18.09

12/31/16  $18.31

12/31/15  $18.97

IPO at $20 (March 2015): Prospectus (proceeds at $19.64 before internal expenses)

Last Earnings Report (Q/E 9/30/24): 

NII per share: $.58

Adjusted NII per share: $.57

Investments on non-accrual "amounted to 2.2% and 4.5% of the total investment portfolio at fair value and amortized cost respectively". 

Weighted Average Yield of Investments at amortized cost = 11.8% (13.9% at fair value, which has the mark down on values)

Net realized loss on investments: $83.796M  and at $131.446M for 9 months (excludes currency) Goldman Sachs is supposed to be among the less destructive Masters of Disaster.  

Company assessment of credit risks: 

10-Q for the Q/E 9/30/24, page 67, 

Percent of performing debt at floating rate: 99.4%

The coupons on floating rate loans, priced at spreads to short term rates, will reset at lower rates as the Fed cuts the FF rate. 

Companies Estimate of Impact on Net Investment Income From Changes in Interest Rates.  

10-Q at page 77 

Goal: Any total return in excess of the dividends payment before any ROC adjustment to the tax cost basis. 

Purchase Restriction: Averaging down only in 5 or 10 share lots with each subsequent purchase required to be at the lowest price in the chain. 

Maximum Position: 100 shares

E. Added to DOW - Bought 1 at $41.99; 2 at $41.53: 

Quote:Dow Inc. (DOW)

Cost: $125.04 

DOW SEC Filings

DOW  Analyst Estimates | MarketWatch

Dow Presents at Citi 2024 Basic Materials Conference.pdf

Chemical stocks are in a falling knife mode which I have been discussing in prior posts and in comments. 

Recent presentations at an investor conference, as previously discussed, confirmed that weak demand had continued into the 4th quarter. I am now in a 2 share buy mode for Dow and will continue buying in 2 share lots provided each subsequent purchase is at the lowest price in the chain. 

Two Year Chart: Bear Market Trend with no bottom forming yet  (double top formation in 2/2023 and April/May 2024; failed reversal of downtrend in September 2024)

Short Position as of 11/29: 15.4M shares

New Average cost per share = $47.93 (18+ shares)

Dividend: Dividend at $.70 per share ($2.8) annually. 

DOW Dividend History | Nasdaq

I do not view the dividend as safe. 

I am reinvesting the dividend and will continue doing so as long as the likely reinvestment price lowers my average cost per share. 

Yield at $47.93: 5.842%

Last Ex Dividend: 11/29/24 (owned 13+ as of)

Last Discussed: Item # 2.D. Added to DOW - Bought 1 at $43.99; 1 at  $42.59 (12/5/24 Post) 

Last Earnings Report (Q/E 9/30/24): I discussed this report here: Item #2.G. Added to DOW - Bought 2 at $48.39; 1 at $47.82 (11/7/24 Post); SEC Filed Press Release

Last Elimination: Item # 1.B. Eliminated DOW in 2 Taxable Accounts - Sold 5 at $59.71; 8 at $60.02 (2/13/23 Post)(profit snapshots = $54.14)

My Consider to sell highest cost lots: >$60

I will need to patient. 

F. Restarted ABBV - Bought 1 at $177.17; 1 at $173.9 -Schwab Account: 

Quote: AbbVie Inc.

Cost: $251.09

ABBV  Analyst Estimates | MarketWatch The estimates are obviously non-GAAP. As of 12/11/24, the average E.P.S. estimate for 2024 was at $11.24; at $12.21 in 2025 and at $13.35 in 2026. If I used a 15 multiple applied to the $12.21 estimate for 2025, the price would be $183.15. For ABBV, based on what I know now, I would use a 13 to 17 multiple as a fair value range which is just an opinion. 

ABVV SEC Filings

Investor Overview | AbbVie

Website: AbbVie

Pipeline - Our Science | AbbVie

Key Products Sales 2024 Third Quarter: 

Through its acquisition of Allergan in 2020, AbbVie acquired Botox, Juvederm, Vraylar, Ubrelvy and Quilipta. This acquisition IMO worked for AbbVie shareholders. AbbVie Completes Transformative Acquisition of Allergan - May 8, 2020

The Imbruvica sales decline was due to AZN's competing drug Calguence. The sales of Imbruvica will decline in response to be included in the first round of Medicare price cuts which will take effect in 2026. Ibrutinib Costs Drop 38% Under Medicare Price Negotiations 

Last Elimination: Item #6.K. Eliminated ABBV - Sold 1 at $145.84; 2 at $144.13; and 1.506 at $144.46  (11/8/22 Post)(profit snapshot = $181.01) 

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

I have mixed opinions about ABBV developments since I last discussed this company in 2022. 

The decline in Humira sales was expected due to generic competition and that is a big problem. In the third quarter, global Humira sales decreased 37.2% to $2.227B, with U.S. sales falling 41.6% to $1.7765B. 

It was comforting to see that the two new approved drugs, Skyrizzi and Rinvoq, have clearly moved into blockbuster status. I had some doubts that this would happen back in 2022 given the black box warning label for Rinvoq.  FDA's new JAK safety restrictions spell trouble for AbbVie's Rinvoq, but to what extent? | Fierce Pharma (9/2/21) So, if that was all there was, I would have bought 5 shares.  

However, a major negative development has recently occurred relating to ABBV's recently closed acquisition of Cerevel Therapeutics. AbbVie Completes Acquisition of Cerevel Therapeutics - Aug 1, 2024 The acquisition was for $45 per share or about $8.7B in cash. 

The centerpiece of that acquisition was the schizophrenia drug enraclidine which had shown promise in a phase 1 trial. 

Shortly after the acquisition was finalized, ABBV reported that a somewhat larger patient Phase 2 trial failed to meet its primary endpoints. AbbVie Provides Update on Phase 2 Results for Emraclidine in Schizophrenia - Nov 11, 2024 

The stock closed at $199.50 before this announcement and at $174.43 the next trading day or $25.07 per share. Using the share count of 1.771B as of 9/30/24, the $25.07 per share decline amounted to $44.398+B. This seemed an extreme reaction to me. The trial failure does indicate that ABBV paid far too much for a company whose main drug was in a treatment area that is littered with failures and had only completed a small phase 1 trial.  

Other Recent Developments: This looked promising to me with the usual caveat that I have zero training and book learning in this area. Two Data Analyses From Clinical Trials Show Epcoritamab (DuoBody® CD3xCD20) Induces Durable Complete Responses As Monotherapy and Combination Treatment in Patients With Diffuse Large B-Cell Lymphoma - Dec 9, 2024 The trials so far have a small number of patients. 

Genmab A/S ADR (GMAB); GMAB | Genmab A/S ADR Analyst Estimates | MarketWatch I have bought 5 shares as a Lotto and discuss this purchase in Item # Te in

"Epcoritamab (approved under the brand name EPKINLY in the U.S. and Japan, and TEPKINLY in the EU) has received regulatory approval in certain lymphoma indications in several territories. Use of epcoritamab + R-CHOP in first-line DLBCL is not approved in the U.S. or in the EU or in any other territory. The safety and efficacy of epcoritamab for use as a combination therapy in DLBCL have not been established. . . . " 

This drug had $43M in revenues in the third quarter, up from $13.4M in the 2023 third quarter. 

R-Chop: Combination of rituximab, cyclophosphamide, doxorubicin, vincristine, and prednisone

DLBCL: Diffuse large B-Cell Lymphoma

FDA approval was in May 2023: FDA approval of Epkinly (epcoritamab-bysp) for relapsed or refractory diffuse large B-cell lymphoma and high-grade B-cell lymphoma | FDA Sales apparently started in the 2023 4th quarter in the U.S.

AbbVie Announces European Commission Approval of TEPKINLY® (epcoritamab) for Adults with Relapsed or Refractory Diffuse Large B-cell Lymphoma - Sep 25, 2023; TEPKINLY® (epcoritamab) Receives Second European Commission Approval for the Treatment of Adults with Relapsed/Refractory Follicular Lymphoma - Genmab A/S

Average cost per share: $175.53 (2 shares)

Dividend: Quarterly at $1.64 per share ($6.46 annually), last raised from $1.55 per share effective for the 2025 first quarter payment. The quarterly rate was at $.42 per share in 2014. 

ABBV Stock Dividend History & Date

Yield at $175.53: 3.737%

Next Ex Dividend: 1/15/25

Last Earnings Report (Q/E 9/30/24): 

GAAP E.P.S. = $.88 

Non-GAAP E.P.S. = $3, up 1.7%

Both E.P.S. numbers include a negative impact of $.04 related to acquired IPR&D and milestone expenses. 

It is common for drug companies that have engaged in acquisitions to have large differences between GAAP and Non-GAAP E.P.S. One of the largest adjustments will generally be intangible asset amortization, a non-cash charge, which was $1.6B for ABBV in the third quarter.  

GAAP to Non-GAAP Reconciliation: 

Analyst Reports (available to Schwab Customers):

Morningstar (12/2/24): 3 stars with a fair value estimate of $176. The analyst trimmed its estimate of Cerevel drug portfolio from more than $2B annually by 2033 to $500M. The analyst estimates that most of the $500M in revenues would be generated by Cerevel's early stage Parkinson's disease drug Tavapadon which had positive results from two stage 3 trials with another Phase 3 trials yet to report. The analyst increased the PT for BMY, which has an approved schizophrenia drug Cobenfy, to $66 from $63. I own 35+ BMY shares with a $54.37 average cost per share:

Price Intraday on 12/12/24

S&P (11/11/24): 3 stars with a $185 PT. The analyst downgraded the stock based on the schizophrenia drug trial results released on 11/11.

Argus (11/1/24): Upgraded to buy based on Skyrisi and Rinvoq revenue growth, price target at $220. The price was at $203.55 when the analyst issued this report. 

G. Bought 10 GMAB at $21.74: 

Quote: Genmab A/S ADR   (GMAB) 

Cost: $217.40

This is my first purchase. I came across this company when I was updating my research on ABBV. 

ADR Ratio: 1 ADR = .1 Ordinary Share priced in Danish Krone (DKK)

DKK Quote: Genmab A/S (Denmark: OMX) 

The ADR U.S. price will reflect the share price on Denmark's stock exchange converted into USDs and adjusted for the ADR Ratio. When I bought the ADR, the DKK price was at 1,543, down .87%. Converting DKK1,543 in USDs, the USD price was $217.2 which has to be divided by 10 given the ADR ratio or US$21.72.

52 Week ADR Range: $20.34-$21.78

Investment Category: Lottery Ticket Basket

This company has experience success in generating royalties as summarized below. The LT classification is based on my lack of knowledge about the potential revenue streams for two approved products discussed below or any pipeline drug. My "feeling" is that the royalty stream is already baked into the price and further gains will be dependent on matters that I have no ability to assess. With the lack of any dividend and that unresolvable uncertainty, the investment was categorized as a Lottery Ticket.   

GMAB analyst Estimates | MarketWatch (as of 12/11/24, the average E.P.S. estimate is shown at $1.17 for 2024; $1.55 in 2025; and at $1.92 in 2026). 

Investor Relations | Genmab

SEC Filings (foreign issuer forms)

Pipeline | Genmab

Our medicines | Genmab The company has two  approved drugs: Tivdak (U.S.) and Epkinly (U.S./Japan) and called Tepkinly in the EU. I discussed Epkinly in the the ABBV section above. 

Tivdak® (tisotumab vedotin-tftv) | Official Patient Site; 

FDA Grants Full Approval for TIVDAK® to Treat Recurrent or Metastatic Cervical Cancer | Pfizer This drug was co-developed with Seagen that was recently acquired by Pfizer. Accelerated approval was apparently granted in 2021. FDA grants accelerated approval to tisotumab vedotin-tftv for recurrent or metastatic cervical cancer | FDA The EU has granted a temporary marketing authorization. 

Genmab receives royalties for DARZALEX (daratumumab) marketed in the U.S. by Janssen Biotech and from Kesimpta (ofatumumab) marketed by Novartis. 

Other royalties from approved drugs are included in this chart: 

Sourced: Page 14, Interim Report.pdf 

For the 3 months ending on 9/30/24, royalties paid to Genmab totaled DKK 4,694M (DKK4.694B) or about US$662.841+M, assuming I did the conversion right.   

Royalties accounted for 84.73% of revenues for the quarter. 

The stock chart shows that the price started to trend down from around $27.8 starting in September. Earlier in August, BioNTech ended its collaboration with Genmab on Acasunlimab, a bispecific antibody designed to produce an anti-tumor response by activating a receptor called 4-IBB on T Cells. There is probably some concern that Genmab will be entirely financing the Phase 3 trial.  Genmab Takes Full Control of Acasunlimab Development Program - Genmab A/S

Purchase Restriction: Maximum exposure $500 with each subsequent purchase required to be at the lowest price in the chain and in 5 share lots. 

2. Small Ball Sells: 

A. Pared CTO in Schwab Account - Sold 13 at $20.37: 

Quote: CTO Realty Growth Inc. (CTO) - Externally Managed REIT

Proceeds: $264.83

I sold my highest cost lots. 

Diluted Shares as of 9/30/24: 25,521,749

Using that share count and a price of $20.37, the market capitalization is about $519.7+M.  

CTO SEC Filings

10-Q for the Q/E 9/30/24 

Properties as of 9/30/24:

Structured Investments as of 9/30/24: "Commercial Loans and Investments"

In Thousands: 10-Q at p.18

In the 2024 third quarter, CTO received $1.6M in interest from these investments. 10-Q at page 42.

Investment in Alpine Income Property Trust  (PINE) 

I owns PINE shares as well. {Last discussed: Item # 4.E. Pared PINE - Sold Highest Cost 15 Shares at $18.47 (8/29/24 Post)} 

CTO "owns, in the aggregate, 1,223,854 OP Units and 1,138,621 shares of PINE common stock, representing an investment totaling $43.0 million, or 15.3% of PINE’s outstanding equity." 10-Q at page 19. 

PINE currently pays a quarterly dividend of $.28 per share. 

Dividend income from this investment generated about $700K in the quarter. 10-Q at page 43. 

Management Fees Paid By PINE (2024 3rd quarter): $1.1M, see 10-Q at page 42. 

Last Buy Discussions: Item # 1.B. Added to CTO - Bought 5 in Schwab Account at $17.13 (5/10/24 Post); Item # 1.K. Added to CTO - Bought 1 at $16.49 (3/1/2024 Post); Item # 1.A. Added to CTO - Bought 15 at $17.2; 5 at $17.1 (12/16/23 Post)

Profit Snapshot: $12.89

New Average cost per share this account: $17.08 (97+ shares)

Snapshot Intraday on 12/5/23 - 1 Day after pare

Dividend: Quarterly at $.38 per share ($1.52 annually) 

CTO Stock Dividend History & Date

Yield at New AC per share this account: 9%

Last Ex Dividend: 12/12/24

Last Earnings Report (Q/E 9/30/24): 

SEC Filed Press Release; SEC Filed 2024 Third Q. Investor Presentation; and SEC Filed 2rd Quarter Supplemental  

"During the nine months ended September 30, 2024, the Company invested $273.8 million into five retail properties totaling 1.2 million square feet and one vacant land parcel, originated two first mortgage structured investments for $53.8 million, and invested $10.0 million in a preferred equity investment in a subsidiary of a publicly-traded hospitality, entertainment and real estate company. These investments represent a weighted average going-in cash yield of 9.1%."

AFFO per share: $.51, up from $.48

As with other U.S. equity REITs, the noncash depreciation expense is the largest add back to GAAP net income. 

The next largest add back will be stock compensation which was $750,000 in the second quarter. 

Changes in the value of CTO's stock owneship in PINE may be an add back (if there is an unrealized decline in value) or a deduction (if there is an unrealized increase in value). In the third quarter, there was an increase of $6.244M so that amount was deducted in the FFO calculation. 

Gains on property sales will be deducted from GAAP in the FFO calculation, while losses on property sales will be an add back. 

Non-cash revenue created by the straight line accounting convention, which was $473,000, is deduction from FFO in the AFFO calculation.  

To arrive at core FFO available to common shareholders, the amount of the preferred dividend ($1.878M) is deducted from FFO to arrive at core FFO available to common shareholders. The preferred shareholders have a  superior claim to cash compared to the common shareholders only.   

2024 Revised AFFO per share guidance: $1.96 to $2.0

Sold during the quarter 6,851,375 common shares at a weighted average price of $18.63 and received net proceeds of $125.7M, a significant percentage of the current market capitalization.       

During the quarter, CTO sold 15,844 shares of its preferred series A stock at a weighted average price of $23.22. 

Both the common and preferred stock sales were under an ATM program. 

Other Sell Discussions: Item # 3.H. Sold 10 CTO at $19.72 (11/7/24 Post)(loss snapshot = -$13.48); Item # 3.H. Pared Duplicate Position in CTO - Sold 5 at $19.36 in Fidelity Account  (10/24/24 Post)(profit snapshot = $6.11); Item # 1.B. Sold 10 CTO at $19.34 and Item # 1.C. Eliminated CTO Position in Vanguard Account - Sold 25 at $19.98 (8/2/24 Post)(profit snapshot = $19.94)

Stock Split: 3 for 1 in 2022. 

CTO Equity Preferred Stock: I also own the $25 par value equity preferred stock, CTO-PA, that has a 6.375% coupon. My AC per share is $18.89. {Last Discussed: Item #2.C. Added to CTOPRA - Bought 3 at $17.77 (11/11/23 Post); Item # 1.A. Bought 5 CTOPRA at $18.5; 2 at $17.8 (9/30/23 Post)}

B. Pared RITM - Sold 26+ at $11.19: 

Quote: Rithm Capital Corp.  (RITM) - Internally Managed Hybrid REIT

I sold my highest cost lots using the specific identification cost method. That is what the "S" stands for in the following snapshot. 

Proceeds: $300.28

"Rithm Capital is a global asset manager focused on real estate, credit and financial services. Rithm makes direct investments and operates several wholly-owned operating businesses. Rithm’s businesses include Sculptor Capital Management, Inc., an alternative asset manager, as well as Newrez LLC and Genesis Capital LLC, leading mortgage origination and servicing platforms."

RITM Analyst Estimates | MarketWatch

RITM SEC Filings

10-Q for the Q/E 9/30/24 

Website: Rithm | Home

Reuters Profile Page 

Reuters Valuation Page 

Last Buy Discussions: Item # 1.L. Added to RITM - Bought 5 at $9.18 (11/4/23 Post); Item # 2.B. Added to RITM - Bought 5 at $10.04; 5 at $9.63 (9/30/23 Post)

Last Sell Discussion:  Item # 4.A. Pared RITM - Sold 13 at $11.19 (3/28/24 Post)(profit snapshot = $14.95) 

Profit Snapshot: $45.22

New Average cost per share: $7.95 (58+ shares)

Snapshot Intraday on 12/3/24 after pare

I am likely to keep the remaining shares. 

Dividend: Quarterly at $.25 per share

RITM Dividend History | Nasdaq

Yield at $7.95: 12.58%

Last Ex Dividend: 10/1/24 (owned all as of)

Last Earnings Report (Q/E 9/30/24): 

SEC Filed Press Release 

GAAP E.P.S. $.20

Non-GAAP E.P.S. ("funds available for distribution"): $.54

Reconciliation: 

The addition to GAAP is related to the valuation of mortgage servicing rights (MSRs). The decline in interest rate in the third quarter lowered the value of MSRs while a rise in interest rates increased their value. It is my understanding that the MSR valuation models attempt to forecast mortgage prepayments. With rising rates, there will be fewer prepayments and consequently more future income from servicing the mortgages.  Mortgage Rates Fuel Rise in Mortgage Servicing Right (MSR) Values - Wilary Winn  

As with other hybrid REITs, like STWD which I also own, this REIT is far too complicated for me and consequently my investments will remain small. Risks will be managed and reduced over time by selling my highest cost shares for profits, no matter how small, and considering buying back shares when there is a share price meltdown as there was in 2020.  

2023 SEC Filed Annual Report (Risk factor summary starts at page 16 and ends at page 69)

C. Eliminated Duplicate Position in HR - Sold 14+ at 18.10 (Schwab account): 

Quote: Healthcare Realty Trust Inc. (HR) 

Proceeds: $257.04

HR is a REIT that owns primarily medical office buildings located near hospitals. 

Profit Snapshot: $56.05

Properties as of 9/30/24: 660

In Thousands

Investment Category: Equity REIT Common and Preferred Stock Basket Strategy

HR SEC Filings

SEC Filed 2023 Annual Report 

10-Q for the Q/E 9/30/24 

Healthcare Realty Trust (HR) and Healthcare Trust of America (HTA) Announce Closing of Merger - Healthcare Realty

Most of current HR position, held in my Fidelity account, originated from owning Healthcare Trust of America (HTA), not HR. 

HR acquired HTA but HTA was the company that survived, a reverse merger. After the merger was consummated, the name of the surviving company was change to Healthcare Realty and the symbol changed from HTA to HR. 

Prior to the closing, HTA paid its shareholders a special dividend of $4.82 per share. I owned 50 HTA shares and received a $241 cash payment, most of the payment was classified as ROC as I recall that reduced my tax cost basis. 

As I have discussed many times, both HTA and HR during their separate existence failed to increase cash available for distribution (CAD) per share over a long period of time. (e.g., in Item # 1.H discussing legacy HTA; wherein I calculated the CAD per share in the 2021 3rd quarter at $.349; at $.377 in the 2020 third quarter and at $.344 in the 2016 3rd quarter or flat over a 5 year period. In Item # 2.A. discussing Legacy HR, I noted that the CAD per share was $.33 in the 2021 4th quarter and at $.31 in the 2012 4th quarter) 

Prior posts contain the relevant data. I have discussed that history in prior posts. 

Combining two entities who have proven an inability to increase CAD per share will not create one that can IMO. 

This combination, which made no sense IMO, was the brainchild of hedge fund manager Paul Singer. Elliott Investment Management urges REIT Healthcare Trust of America to explore sale | Reuters (10/11/21)

I attribute the long term poor performance for both HR and HTA, measured on a CAD per share basis, to buying Medical Office Buildings at low capitalization rates, paying out almost all CAD to common shareholders, and raising capital to expand through expensive acquisitions by selling shares and acquiring more debt which has become more expensive to refinance over the past two years. Maybe that could be argued as being rational when financing costs were below or slightly above the inflation rate. But with rates returns to normalized levels above the anticipated inflation rate, the growth by acquisition strategy that involved buying properties with low capitalization rates was a long term losing one for shareholders.  

Last Discussed: Item # 3.B. Eliminated HR in Schwab Account - Sold 5 at $19.09 (3/19/23 Post) 

Dividend: Quarterly at $.31 per share 

HR Dividend History | Nasdaq

The dividend was not covered by cash available for distribution in the third quarter.  

Last Ex Dividend: 11/12/24

Last Earnings Report (Q/E 9/30/24): 

SEC Filed Press Release and SEC Filed Supplemental 

E.P.S. ($.26)

NAREIT Defined FFO: $.21 

Normalized FFO: $.39

Funds Available for Distribution ("FAD", same as "CAD"): $106.928M

FAD Per Share: $.294 (Using weighted average shares of 363.37M)

Dividends Paid in 3rd Q: $113.77M 

Reconciliation Net Income to FAD: 

Maintenance CAPEX was $34.606M which is the only subtraction from Normalized FFO to arrive at FAD. Cash spent on routine maintenance is not available to support the dividend. 

Debt: $4.957+B, see 10-Q at p. 17.

Some Legacy HTA Sell Discussions: Item # 6 Pared HTA - Sold 20 at $31.8 (4/28/22 Post)(profit snapshot = $198.37); Item # 1.H. Sold 5 HTA at $31.61; 5 at $32.89 (11/11/21 Post)(profit snapshot = $96.97); (Item # 3.B. Pared HTA - Sold 10 at $28.17; 10 at $29.17 (7/18/20 Post)(profit snapshot = $118.58); Item # 1  Sold 2 HTA at $26.7 (5/2/20 Post)(Profit Snapshot = $7.81); Item # 2.D. Eliminated HTA-Sold 30 at $32.51 (2/8/2020 Post)(profit snapshot = $178.02); Item # 1.A. Sold 10 HTA at $31.31 (1/29/20)(profit snapshot = $44.34); Item # 2.B. Sold 10 HTA at $30.81 (11/28/19 Post)(profit snapshot = $39.2);Item # 1.A. Sold 15 HTA at $28.57-Used Commission Free Trade(9/12/18 Post)(profit snapshot = $46.12); Item # 2 Sold 50 HTA at $26.25 Update For REIT Basket Strategy As Of 10/28/15 - South Gent | Seeking Alpha(profit snapshot = $124.1)

Largest Legacy HR Realized Gain: Item # 2 Sold 50 HR at $26.33 Update For REIT Basket Strategy As Of 10/19/15 - South Gent | Seeking Alpha (profit snapshot = $103.27)

I highlighted the previous sell prices to underscore that the growth by acquisition strategy has failed. 

Combined HR and HTA Realized Gains: $956.03 

D. Eliminated Duplicate Position in FSCO - Sold 20 at $6.78:

Quote: FS Credit Opportunities Corp. Overview - Leveraged CEF 

Proceeds: $135.69

Portfolio: 

FSCO_Q32024_Fact Sheet.pdf

Insofar as the portfolio owns senior secured loans made to private companies, this CEF is similar to a BDC including FS KKR Capital (FSK) that has the same external manager. Most of the loans are at spreads to short term rates. FSCO also owns senior secured bonds, subordinated debt and asset backed finance.  Both the BDC and this CEF use leverage and both can trade at discounts to the last reported net asset value per share. The NAV for the CEF is reported each business day and is consequently more current than the quarterly reports filed by BDCs that have that information.   

Sponsor's website: FSCO-FS Investments

FSCO SEC Filings

Profit Snapshot: $21.89

Last Discussed: Item # 1.B. Added to FSCO - Bought 5 at $5.67; (3/1/24 Post); Item # 2.E. Started FSCO - Bought 50 at $5.78  (2/2/24 Post) I still own those shares. 

Dividend: Monthly at $.06 per share 

FSCO Dividend History | Nasdaq

Next Ex Dividend: 12/23/24

Data Date of 12/9/24 Trade: 

Closing Net Asset value per share: $7.11

Closing Market Price: $6.71

Discount: -5.63%

Sourced: FSCO - CEF Connect 

D. Eliminated MGA - Sold 3 at 46.01: 

Quote: Magna International Inc. (MGA)

Proceeds: $138.03  

Website: Magna International

MGA Analyst Estimates | MarketWatch

I decided to own only the MGA SU bond maturing in 2025 for now. I have two concerns about the stock: (1) possible U.S. tariffs on its products manufactured in Canada and (2) a slowdown in new automobile sales. Magna is a major auto parts manufacturer. 

Profit Snapshot: $16.67

Last Discussed: Item # 3.C. Started MGA - Bought 1 at $40.8; 2 at $40.28 (10/10/24 Post). I discussed the second quarter earnings report in that post.   SEC Filed Earnings Press Release

Last Earnings Report (Q/E 9/30/24): SEC Filed Press Release 

Revenue $10.3B decline in line with the 4% decrease in global light vehicle production 

E.P.S. = $1.68

Adjusted E.P.S. = $1.28, down $.18 which includes $.10 from a higher tax rate. 

My Consider to Purchase Range: Less than $38 with no major intervening negative news. 

MGA SU Bonds: I own 4 of the 4.15% SU bonds that mature on 10/1/2025. Bond Page | FINRA.org

E. Pared CET Sold 2 at $47.04 - Schwab Account: 

Quote: Central Securities Corp. (CET) - Stock CEF

Proceeds: $94.08

This fund was formed shortly before the 1929 stock market crash and was one of the few CEFs that survived the Great Depression. 

Last Buy Discussions: Item # 3.C. Added to CET - Bought 2 at $35.7 (11/18/23);  Item # 2.H. Added 5 CET at $35.48 (6/20/23 Post)

Sponsor's website: Home Page - Central Securities Corporation

CET Page at Morningstar (rated 5 stars)

CET SEC Filings 

Top 10 Holdings as of 9/30/24: 

As previously discussed, the largest holding is a private insurance company called Plymouth Rock. CET has on occasion sold some Plymouth shares back to the company. CET receives dividends from Plymouth. In 2023, the total was $7,224,244. SEC Filed Annual Report at page 21 CET received $9,344,958M in dividends last year from Plymouth Rock. SEC Filed 2022 Annual Report at 21. 

Portfolio Changes in the Third Quarter: 

I sold my highest cost shares that were not purchased with dividends. The 2 shares were bought at 4/2/21 at $42.07. Since that purchase, this fund has paid $10.3 per share in dividends. 

Last Dividend (owned all as of): $2.05 per share with a 11/15/24 ex dividend date and a 12/20/24 pay date. CET Stock Dividend History & Date

The fund pays a $.20 per share semiannual dividend in June and a significantly higher one in December that includes capital gains. 

Prior Dividend History:

Per Share: 

2022: $2.25 

2021:  $3.55

2020: $1.50

2019:  $1.15

2018:  $1.20

The largest annual distribution starting in 1990 was $3.5 per share in 2013. CET sold back to Plymouth Rock 35,000 shares realizing $92,750,000 in proceeds. 2013 Annual Report at page 6 CET last sold shares back to Plymouth Rock in 2015, reducing its stake from 34,434 to 28,424 for $24M in proceeds.  2015 Annual Report at page 18 

Profit Snapshot: +$9.94

New Average cost per share: $34.25

Snapshot Intraday on 12/11/24 - 1 Day after pare

The reason for taking the AC per share snapshot one day after pare is that Schwab updates the information overnight when using the specific identification cost method.  

The AC was reduced from $35.1. 

Data as of 12/6/24: 

CET updates NAV per share only on a weekly basis. 

Net Asset Value per share: $57.03

Closing Market Price: $47.31

Discount: -17.04

Sourced: CET - CEF Connect 

Net asset value per share will be highly dependent on the valuation given to the Plymouth shares owned by CET. 

F. Pared TSLX - Sold 3 at $21.41 - Schwab Account:  

Quote: Sixth Street Specialty Lending Inc. (TSLX) - Externally Managed BDC

Proceeds: $64.23

I sold my highest cost shares. 

TSLX SEC Filings

10-Q for the Q/E 9/30/24 A summary of investments starts at page 7. 

2023 SEC Filed Annual Report (Risk summary starts at page 27 and ends at page 56)

Website: Sixth Street Specialty Lending - TSLX - Home

Last Discussed: Item # 2.O. Added to TSLX - Bought  1 at $17.58 (5/20/23 Post); Item # 1.G. Added to TSLX - Bought 1 at $17.87 (4/29/23 Post); Item # 2.D. Added to TSLX - Bought 5 at $18.3; 5 at $18.1 (12/13/22 Post)

Profit Snapshot: +$7.83

New Average cost per share: $18.32 (20+ shares)

Snapshot Intraday on 12/11/24 - 1 Day after pare

Regular Dividend: Quarterly at $.46 per share ($1.84 annually) 

Dividends | Sixth Street Specialty Lending Inc.

Special Dividends: Variable

In 2024, this BDC pay $.25 in special dividends and $.26 in 2023.  

Yield at New AC  =  10.04% (regular dividend only)

Last Ex Dividend (owned all as of): 11/5/24 ($.46 regular and $.05 special)

Net Asset Value per share History: 

For a BDC, I would characterize this history as stable and far more favorable to shareholders than the Goldman Sachs BDC discussed in Item #1.D. above.

 9/30/24: $17.07 

12/31/23: $16.96

12/31/22: $16.48

9/30/22:  $16.36

12/31/21:  $16.84

12/31/20: $17.16

12/31/19:  $16.83

12/31/18:  $16.25

12/31/17:  $16.09

12/31/16: $15.95

12/31/15: $15.15

12/31/14: $15.53

IPO in March 2014: Prospectus (public offering at $16 per share with estimated proceeds to $15.04, excluding internal expenses connected with the offering of about $.43 per share)

Last Earnings Report (Q/E 9/30/24): 

NII per share: $.59

Adjusted NII per share: $.57

The adjustment is for a capital gain incentive fee that has accrued but has not yet been paid. 

"As of September 30, 2024, the Company’s portfolio based on fair value consisted of 93.2% first-lien debt investments, 0.8% second-lien debt investments, 0.1% structured credit investments, 1.1% mezzanine debt investments, and 4.8% equity and other investments. As of June 30, 2024, the Company’s portfolio based on fair value consisted of 92.8% first-lien debt investments, 0.8% second-lien debt investments, 0.2% structured credit investments, 1.3% mezzanine debt investments, and 4.9% equity and other investments."

"As of September 30, 2024, 98.8% of debt investments based on fair value in the portfolio bore interest at floating rates with 100.0% of these subject to reference rate floors."

"As of September 30, 2024 and June 30, 2024, 1.9% and 1.1% of the portfolio at fair value was on non-accrual status, respectively. The increase was driven by one new investment, Lithium Technologies, added to non-accrual status during the quarter.

Company assessments of credit risks:

10-Q at page 56

Company assessment of NII impact from changes in interest rates:

10-Q at page 70.

SU Bonds: I had 4 SU bonds mature on 11/1/24.

G. Pared WHR Again - Sold 1+ Shares at $126.06:

Quote: Whirlpool Corp.  (WHR)

Proceeds: $185.43

WHR Analyst Estimates | MarketWatch (As of 12/11/24, the average E.P.S. estimate for 2024 was at $12; at $11.51 in 2025 and at $14.18 in 2026).

Last Discussed: Item # 1.D. Sold Highest Cost 7+ Shares in WHR at various prices (11/27/24 Post)(net loss snapshot of -$46.36) I discussed the 3rd quarter earnings report in that post. SEC Filed Earnings Press Release

Profit Snapshot: $49.28

This last pare brings me to a slight net positive gain while reducing my average cost per share from $89.28 to $88.68.  

New average cost per share: $88.68 (8 Shares)

Snapshot Intraday on 11/11/24 after pare

Dividend: Quarterly at $1.75 per share ($7 annually)

WHR  Dividend History

Yield at New AC = 7.89%

Last Ex Dividend: 11/14/25

3. Corporate Bonds: 

A. Bought 2 Physicians Realty LP 4.3% SU Maturing on 3/15/27 at a Total Cost of 99.277: 

Issuer: Operating subsidiary for Healthpeak Properties Inc. (DOC) who guarantees the notes. 

I have a small ball position in the common stock, formerly trading under the PEAK symbol. Item # 1.J. Restarted PEAK - Bought 10 at $15.61 (11/4/23 Post) 

Physicians Realty was acquired by Healthpeak who thereafter changed its stock symbol to DOC from PEAK.  

DOC SEC Filings 

SEC Filed 2024 Third Quarter Report 

Finra Page: Bond Page | FINRA.org

Credit Ratings: Baa1/BBB+

YTM at Total Cost: 4.658%

Current Yield at TC:  4.33%

B. Bought 1 UDR 3.5% SU Maturing on 7/1/27 at a Total Cost of 97.148 - Interactive Brokers Account: 

Issuer: UDR Inc. (UDR) - Component of the S&P 500. 

I have a small ball position in the common stock. 

Last UDR Discussion: Item # 2.B. Added to UDR - Bought 5 at $41.75 (11/7/2024 Post) 

UDR SEC Filings

SEC Filed Press Release for the Q/E 9/30/24 and SEC Filed Supplemental

Corporate Profile | UDR, Inc.

Finra Page: Bond Page | FINRA.org

Credit Ratings: Baa1/BBB+

YTM at Total Cost: 4.686%

Current yield at TC: 3.6%

I now own 4 bonds, with each purchase being a 1 bond lot. 

C. Bought 1 GATX 3.25% SU Maturing on 9/15/26 at a Total Cost of 97.625: 

Issuer: GATX Corp. (GATX) 

I have never owned the common stock. 

GATX Analyst Estimates | MarketWatch

GATX SEC Filings 

GATX SEC Filed Earnings Press Release for the Q/E 9/30/24 

GATX 10-Q for the Q/E 9/30/24 

Finra Page: Bond Page | FINRA.org

Credit Ratings: Baa2/BBB

YTM at Total Cost: 4.653%

Current Yield at TC = 3.339%

I own 4 GATX 3.25% SU notes that mature on 3/30/25, Bond Page | FINRA.org

I had 4 GATX 4.35% SU bonds, which include 1 in a RI account, mature on 2/15/24. 

D. Bought 2 Kimco Realty 3.25% SU Maturing on 8/15/26 at a Total Cost of  97.571:

Issuer:  Kimco Realty Corp.  (KIM) - Internally managed retail REIT

This note was originally issued by Weingarten Realty who was acquired by Kimco. 

I have a small ball position in the stock. 

Last KIM Discussion: Item # 1.A. Started KIM - Bought 10 at $18.05; 5 at  $17.58 (4/19/24 Post) 

KIM SEC Filings

KIM SEC Filed Earnings Press Release for the Q/E 9/30/24 

Website: Kimco Realty

Finra Page: Bond Page | FINRA.org

Credit Ratings: Baa1/BBB+

YTM at Total Cost: 4.754%

Current Yield at TC: 3.31% 

I am in the process of staggering maturities for KIM SU notes. This is an integral part of my short term corporate bond ladder.  

I currently own 8 bonds: 

4 SU 3.3% Maturing on 2/1/25, Bond Page | FINRA.org

2 SU 3.85% Maturing on 6/1/25, Bond Page | FINRA.org

2 SU maturing on 8/15/26 (discussed here)

E. Bought 2 Healthcare Realty 3.75% SU Bonds Maturing on 7/1/27 at a Total Cost of 97.37: 

Issuer: Healthcare Realty Trust Inc. (HR) - A REIT that owns medical office buildings.  

I have a position in the common stock.  

The bond was originally issued by Healthcare Trust of America (HTA), a medical property REIT. Healthcare Realty Trust and Healthcare Trust of America Announce Closing of Merger - Healthcare Realty (7/20/22) This was a reverse merger where HTA was the surviving company who then changed its name and symbol to Healthcare Realty (HE). Healthcare Realty and Healthcare Trust of America Enter Into $18 Billion Strategic Combination - Healthcare Realty

HR SEC Filings 

HR SEC Filed Earnings Press Release for the Q/E 9/30/24 

HR 10-Q for the Q/E 9/30/24 Debt obligations are listed at page 17, but the interest rates are not the coupons but the "effective interest" rates. The coupon rates are listed at p. 31 of the 2023 Annual Report which includes this 3.75% note. 

Finra Page: Bond Page | FINRA.org

Credit Ratings: Baa2/BBB

YTM at Total Cost: 4.848%

Current Yield at TC = 3.85% 

I have staggered short term notes issued by this REIT. I currently own the following: 

3 SU Maturing on 5/1/25, FINRA Bond Page 

4 SU Maturing on 8/1/26, FINRA Bond Page 

2 SU Maturing on 7/1/27 (the note discussed here) 

F. Bought 2 Southern Gas 3.875% SU Maturing on 12/15/25 at a Total Cost of 99.203: 

Issuer: The bond was originally issued by AGL that was acquired by Southern Co. (SO), a large utility holding company, in 2016. Southern Company and AGL Resources complete merger, create a leading U.S. energy company Southern also owns large electric utilities operating in the southeastern U.S.

Finra Page: Bond Page | FINRA.org

Credit Ratings: Baa1/A-

YTM at Total Cost: 4.745%

Current Yield at TC: 3.906%

I now own 4 bonds. 

4. Treasury Bills Purchased at Auction: 

A. Bought 15 Treasury Bills at the 12/5/24 Auction - 2 Accounts: 

58 day bill 

Matures on 2/5/25

Interest: $101.5 

Investment Rate: 4.44% 

The ten bill purchase was in my Fidelity account where I was simply redirecting the proceeds from 10 T bills that matured on 12/5/24. The 5 T Bills bought in my Schwab account was a redeployment of $5K in proceeds received from a maturing bill on 12/5/24.

B. Bought 8 Treasury Bills at the 12/9/24 Auction - 2 Accounts: 

91 Day Bills

Mature on 3/13/25

Interest: $86.96

Investment Rate: 4.408%

This IR is consistent with a .25% cut in the FF range on 12/18 IMO.  

C. Bought 2 Treasury Bills at the 12/9/24 Auction: 

182 Day Bills

Matures on 6/12/25 

Interest: $42.47

Investment Rate: 4.351%

5. Exchange Traded First Mortgage Baby Bonds: 

A. Added to EMP in Schwab account- Bought 5 at $22.1: 

Quote: Entergy Mississippi LLC 4.9% First Mortgage Bond

Cost: $110.5

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

ETR SEC Filings 

ETR 10-Q for the Q/E 9/30/24 (Energy Mississippi results can be found starting at page 139)

Prospectus

Par Value: $25

Security: First Lien on substantially all assets 

Coupon: 4.9% paid on the $25 par value

Interest: Paid quarterly

Trades Flat (whoever owns the security on the ex interest date receives the entire quarterly payment)

Maturity: 10/1/2066 unless called at par value earlier at the issuer's option.  Interest rate risk is high. 

Interest Rate Risk: Asymmetric in favor of the issuer. 

If long term interest rates fall significantly, and it is beneficial for the issuer to call and refinance at a lower rate, it will do so, leaving the EMP owners with the $25 par value proceeds that in this scenario with less desirable reinvestment options at the same credit risk. 

If interest rates rise higher and higher, the issuer will allow the owner to keep EMP that is going down in value.  

Last Buy Discussions: Item # 9.A. Added to EMP - Bought 5 at $23.21; 5 at $22.71 (Schwab account)(10/3/24 Post); Item # 6.A. Bought 5 EMP in Fidelity Account at $22.75 (9/12/24 Post); Item # 5.B. Added to EMP in Vanguard Taxable Account - Bought 5 at $22.76 (9/5/24 Post); Item # 4.A. Added to EMP in Schwab Account - Bought 5 at $22.48 (8/8/24 Post)

Average cost per share this account: $22.05  (60 shares)

Snapshot as of close 12/9/24 after add

Yield at AC: 5.556%

(4.9% coupon x. $25 par value = $1.225 in annual interest per share ÷ $22.05 average cost per share = 5.5556%)

Next Ex Interest Date: 12/31/24

Some Sell Discussions: Item # 5.A. Pared EMP-Sold 5 at $26.84  (6/27/20 Post); Item # 4.A. Eliminated EMP-Sold 70 at $24.87 (5/1/19 Post)(largest gain snapshot = $207.92); Item # 2.B. Sold 30 EMP at $24.44  (2/13/19 Post); Item # 2.A. Sold 50 EMP at $24.47 (7/22/17 Post)

EMP Realized Gains to Date: $464.69 (snapshots in  Item # 9.A. and in my Gateway Post for Exchange Traded Baby Bonds)

Maximum Position in Taxable Accounts: 300 shares

Current Position in 3 Taxable Accounts (60 shares each): 180 shares

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.