Dollar Value of Trades Discussed in this Post:
Common Stock/Stock CEF Purchases: $2,144.08
No stock/stock fund sales for the W/E 4/11/25
Treasury Bills: $10,000 in principal amount (3 and 6 month)
Investment Grade Corporate Bonds: $14,000 in principal amount
Equity Preferred Stocks Purchases: $417.75 (AHHPRA, CODIPRA, UMHPRD)
Exchange Traded Bond Purchases (ATLCZ): $169.6
I am now on an irregular publication schedule.
When I have about 20 small ball common stock purchases to discuss, I will publish a new post and leave a comment that this has been done to this post. You can receive comments to posts by email by clicking "comment" at the end of any post and then click the "Notify Me" box.
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RONALD REAGAN vs. TARIFFS: 1987 speech gains NEW LIFE in 2025 - YouTube' ‘Tariffs don’t protect, they backfire’: Former US President Ronald Reagan’s resurfaced warning echoes amid Trump’s new trade war - The Economic Times
Fact-checking Trump's claims that tariffs are a "tax on a foreign country" - YouTube
Late Friday night, Trump backtracked again by exempting phones, computers, chips and other electronic products from the U.S. "reciprocal" tariffs. Trump exempts phones, computers, chips from new tariffs This was a major win for Apple who sources most of its production in China including about 80% of its IPhones. Here’s how much a ‘Made in the USA’ iPhone would cost It is my understanding that the currently exempt products are still subject to the 20% fentanyl tariff punishment on all exports from China. iPhones, other tech get Trump tariff break: What it means for prices
Bull & Bear Markets & Corrections - Yardeni Research
I have not been discussing my treasury bill purchases since my 2/10/25 post. Item # 4 (2/10/25 Post) I have continued to buy $10,000 to $15,000 per week using primarily proceeds from treasury bills that have matured in my Schwab Account. The sweep account at Schwab pays only .05%.
I do have money in a purchased Schwab MM fund that has close to a 4% yield. The 1 month to 6 month T Bills still have a higher yields so I am not moving proceeds from maturing bills into that purchased MM fund. I will use that MM fund as a source of funds in case I want to significantly increase my stock allocation, and I am not anywhere close to doing that now.
I have reduced my weekly treasury bill auction purchases to $10,000 from the $15K mentioned in the 2/10/25 post linked above.
I will likely continue purchasing $10K each week in my Schwab account as long as the IR exceeds 4%. I will only be redeploying proceeds from maturing bills in those purchases with the remainder being using to fund stock purchases.
4/7/25 Auction - $10,000 in principal amount: Schwab Account
IR = Investment Rate
91 Day Bill - Matures on 7/10/25: 4.278% IR
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182 Day Bill - Matures on 10/9/25: 4.139% IR
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The yields on those treasury bills rose slightly through last week. I will be participating in next Monday's auctions.
Most of my small ball stock buying has been in my Schwab account.
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Dynamic Asset Allocation:
I use a dynamic asset allocation approach to investing.
An example is my response to interest rates rising last week, see Item # 2 below.
The value of the USD, as measured by the U.S. Dollar Index, is in a steep decline. DXY: 99.78 -1.08 (-1.07%)(close 4/11/25) The high in mid-January 2025 was near 110. A decline in DXY reflects USD weakness against a basket of 6 foreign currencies weighted in the Euro. This decline will contribute to the inflationary pressures caused by the tariff increases. Dollar hits 10-year low against Swiss franc as markets digest trade war drama | Reuters; Mighty U.S. dollar feels heat as Trump's tariffs spark trade turmoil | Reuters
In the prior week, I was buying first mortgage bonds issued by utilities that had 5% or better coupons, selling below par value, that matured in 2033-2035.
I shifted more into buying investment grade corporate bonds maturing in 2026-2027 due to the rise in yields and far less interest rate risk than with the 2033-2035 maturities.
Given my age and financial condition, my preference is to take less interest rate risk that will flow from a persistent rise in interest rates.
I do need to take into account, however, that the FED may continue to cut the FF rate causing my heavy weighting in treasury bills to generate less interest income.
The decline in stock prices resulted in no stock sales last week and a slight increase in my stock allocation, primarily in my Schwab account.
This is my current asset allocations in my Fidelity and Vanguard Accounts:
Fidelity: This account is down 1.4% from 2/19/25 when the S&P 500 hit its all time high intraday (6,147.43) and most of that decline originated from markdowns in bonds last week.
Vanguard:
The short term reserves is entirely in the Vanguard Federal Money Market Fund - Admiral Class (VMRXX) that has a current seven day SEC yield of 4.24% and a .1% expense ratio.
Increases in my stock allocation will accelerate with further stock declines. There is a lot of room for a higher allocation.
My Schwab account is weighted heavily in treasury bills/treasury notes and Tennessee Municipal bonds with my stock allocation being the highest in my taxable brokerage accounts.
My Interactive Brokers account is heavily weighted in corporate bonds (no municipal bonds), Canadian reset equity preferred stocks and foreign currencies (primarily CADs), with a small exposure to Canadian stocks (bought on the Toronto exchange) and a de minimis allocation to U.S. common stocks.
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I am concerned that the U.S. President may cause a serious worldwide recession. Investors are still discounting that likelihood, as they did in 2007 when it started to become apparent as early as February 2007 that there were disastrous problems in subprime and Alt-A mortgages.
US consumer sentiment plummets to second-lowest level on records going back to 1952 | CNN Business; Consumers now face "tariff surcharges" for some goods as companies pass along costs - CBS News
Amazon CEO Andy Jassy says he believes sellers will pass increased tariff costs on to consumers;
Trump's triple-digit tariff essentially cuts off most trade with China, says economist
China slaps 84% retaliatory tariffs on U.S. goods in response to Trump
In response, Trump increased the U.S. tariff on exports from China to 145%, initially reported by the news media at 125%. Chinese goods subject to tariffs of at least 145%, White House says | CBC News Exports of goods from China last year totaled $438.9 billion. U.S.-China Trade Relations | Congress.gov | Library of Congress
In response, China raised its tariff on U.S. exports to 125%. China strikes back with 125% tariffs on U.S. goods as trade war intensifies U.S. exports of goods to China last year totaled $143.5B. U.S.-China Trade Relations | Congress.gov | Library of Congress
U.S. farmers permanently lost export market share to China resulting from the Trump's tariff war during his first term. (My video: Negative Impacts on U S Food Exports Resulting from Trump's Tariff Increases During his 1st Term - YouTube; Trump Is About to Betray His Rural Supporters - The Atlantic; Trump’s Trade Wars Harm Farmers and Taxpayers | Cato at Liberty Blog; 92 Percent of Trump’s China Tariff Proceeds Has Gone to Bail Out Angry Farmers | Council on Foreign Relations, referring to the tariffs imposed during Trump's first term)
Agricultural products: How Trump’s trade war with China might hurt the American farmers who voted him in Noting that U.S. soybean exports to China are now subject to a 135% tariff.
Montana farmers see Canadian trade dry up due to tariffs - YouTube
There is no practical reason for China or the U.S. to raise tariffs more since the current levels are sufficient to end almost all trade between them other than for the currently exempted products.
When goods in transit subject to to the U.S. 145% tariff are cleared from customs, tariff taxes collected by the U.S. will slow to a trickle and consequently those funds would not be available for Trump and the republicans in Congress to bail out U.S. farmers again as they did during his first term.
China is not going to buckle under Trump's pressure. ‘Never yield’: Fareed Zakaria explains Chinese mentality over trade war - YouTube
European Union approves first set of retaliatory tariffs on U.S. imports Those tariffs are in response to the 25% tariffs on all steel and aluminum exports to the U.S. Implementation has been paused for 90 days. European Union to put countermeasures to U.S. tariffs on hold for 90 days
Trump reverses course on some tariffs but won't change duties on Canada
Study finds Trump's 25% auto tariffs could cost US automakers $108 billion | Reuters ("The study found the Detroit Three could see tariffs of nearly $5,000 for the parts they import on average for each car produced in the U.S., and about $8,600 on average for each car they import.")
Canada has levied retaliatory tariffs. Canada’s response to U.S. tariffs - Canada.ca; Canada Responds to U.S. with 25% Tariffs on Non-USMCA Vehicles Shipped from the U.S. (for vehicles that are compliant with USMCA requirements, Canada will levy a 25% tariff on the parts that were not manufactured in Canada and/or Mexico); Canada announces entry into force of countermeasures against auto imports from the United States - Canada.ca; List of vehicle products from the United States subject to 25 per cent tariffs effective April 9, 2025 - Canada.ca
Canada is responding to Trump levying a 25% tariff tax on the value of parts, steel and aluminum that are not made in the U.S. that would be compliant with tariff free treatment under USMCA which Trump negotiated and signed.
"Under the USMCA agreement—negotiated by President Trump and signed in 2020—a compliant vehicle must meet the following criteria: 75 percent of core parts must originate from within the region, other parts must contain 65–70 percent regional content, at least 70 percent of the steel and aluminum must be sourced from North America, and 40–45 percent of the vehicle’s content must be manufactured by workers earning a minimum of $16 per hour." The “Stacking” Effect of the Trump Administration’s Auto Tariffs Regional content means that the parts are manufactured anywhere in the U.S., Canada and/or Mexico.
There is still a 25% tariff on exports passenger vehicles from foreign countries other than Canada and Mexico and all aluminum and steel U.S. imports.
Trump tariffs on China mean 'irreversible' damage for many businesses
China CPI for second straight month; producer deflation deepens
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Elon Musk wears 'Trump was Right About Everything' hat to cabinet meeting - YouTube
How many times have you heard republicans say that Trump is always right. I hear that phrase or something close virtually everyday. An example is this comment from the republican congressman Troy Nehls from Texas: "if Donald Trump says tariffs work, tariffs work. Period. Because Donald Trump is really never wrong."
From Animal Farm by George Orwell: "If Comrade Napoleon says it, it must be right"; "Napoleon is always right" Those lines are frequently uttered by the horse Boxer in Animal Farm. Napoleon is based on Stalin.
Libraries under siege: How Trump's cuts put community hubs in peril
Attempts to Slash NIH Funding Continue, Threatening the Future of Scientific Research
Fact check: Trump falsely says Europe doesn’t buy anything from US, wildly exaggerates trade deficit with China;Fact check: Trump’s false claims about tariffs and trade Trump is the primary source of Fake News in the world today.
Trump orders probes of two former officials who defied him; ‘Broken promise, abuse of power’: Conservative WSJ editors slam Trump after latest antic; Trump’s retribution sends a chilling message to dissenters This is just one of the routine and deeply authoritarian actions by our Dear Leader.
It is of course Trump and the republicans who have weaponized the DOJ, not former President Biden. All of the criminal charges brought against Trump were justified by the evidence IMO.
One of the few republicans who actually examined the evidence in the Florida documents case, Senator Cassidy (R) from Louisiana, called it "almost a slam dunk" criminal case. Cassidy: Trump classified docs case is ‘almost a slam dunk’ | CNN Politics (My Videos on the Documents Case in Florida: Trump's Obstruction of Justice Felony Charge-YouTube: More on Trump Obstruction Felony Charges-YouTube; Possible Subornation of Perjury in the Documents Case-YouTube) The republican Judge Cannon was never going to allow this criminal case to go to trial. The republican Supreme Court Justices protected Trump from even standing trial for his alleged crimes charged in the D.C. indictments by creating out of whole cloth a near absolute immunity for crimes committed by a President and by rewriting the plain language of a federal criminal statute in the Fischer v. United States decision that resulted in protecting Trump from a criminal charge of obstruction an official proceeding.
Trump's top general calls former president "fascist" and "dangerous" threat (published prior to the election by Axios); John Kelly says Donald Trump fits ‘fascist’ definition and prefers ‘dictator approach’ Kelly is a retired 4 star Marine general and Trump's former chief of staff during his first term. There is no reason why I would disagree with those characterizations. (My Video: Retired 4 Star Marine General John Kelly Calls Trump a Fascist on the record - YouTube; Mark Milley Says Trump is a "Fascist to The Core" My Historical Analysis - YouTube)
James Madison in the Federalist Paper #47: "The accumulation of all powers, legislative, executive, and judiciary in the same hands … may justly be pronounced the very definition of tyranny."
Bondi denounces judge overseeing challenge to Trump order targeting Jenner & Block law firm - CBS News The Attorney General believes that a President should be allowed to punish major law firms for exercising constitutionally protected rights. If the U.S. government is not allowed to extort tens of millions from law firms (the going rate is $100M) by a court injunction, then in Trump's America, the court is interfering with the government's First Amendment rights to engage in extortion.
Trump and many of his top officials routinely engage "doublespeak". Doublespeak-Wikipedia; Nineteen Eighty-Four - Wikipedia; and see Orwell's essay Politics and the English Language | The Orwell Foundation
Trump Is Already Undermining the Next Election - The Atlantic
‘Trump’s Deeply Unwell & Wants to Hurt Us All!’ Heather Cox Richardson - YouTube
Trump and his party are in the process of destroying the U.S. as the leader of the free world. That process may already be irreversible. The guardrails preventing that result are currently non-existent or so extremely weak as to be irrelevant.
The 6 Republican Supreme Court Justices are far more likely to rule in favor of Trump exercising Kingly powers than to meaningfully restrain their exercise, IMO. The immunity decision makes that opinion well grounded in reality. They are easily the most authoritarian prone and enabling Justices in U.S. history, nothing remotely close to true conservatism in the American tradition.
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Small Ball:
Baseball Analogy: Small ball (baseball) - Wikipedia
Primarily a risk reduction trading technique, one of many strategies that I employ to mitigate risks that are assumed when owning risk assets where loss of capital is possible.
(2) Purchases are made in small lots using commission-free trades;
(3) On price pops, I will consider selling my highest cost shares at a profit, no matter how small;
(4) Some positions will be eliminated altogether on price pops when the goal is achieved;
The corollary is to buy the dips, particularly during extreme volatility events that would be associated with major declines in stocks.
Another aspect is selling fractional shares bought with dividends in order to harvest the original dividend amount plus a small profit on the shares. Generally, if I am willing to buy a dividend stock now through a market purchase, I will consider reinvesting the dividend. Conversely, if I am not willing to buy shares, I will likely turn off the dividend reinvestment option.
I have started to turn on more dividend reinvestments due to the recent stock market decline as a means to average down randomly.
My Primary Investment Objectives: (1) Preservation of Capital; (2) Income Generation; (3) Realized Capital Gains in risk assets.
Normally, I will try to generate at least $25K in trading profits during each year. I failed to do that last year. It will be very difficult to achieve that goal in 2025 due to my very low stock allocation and a persistent decline in stock prices so far since mid-February.
1. Sample of Small Ball Stock Purchases:
There were no stock sales last week.
In recent days, I have been executing what I call scattershot small ball stock buys. Those will generally be 1 to 10 share purchases of dividend paying stocks or stock CEFs. In the initial stage of the scattershot buying, I will fill about 40 to 60 limit orders.
I was using the following criteria: (1) stock in companies with U.S. centric businesses with no or immaterial exposure to the tariff war, (2) dividend yields at the then current price mostly in the 6% to 8% range, with some higher or slightly lower; (3) reasonable prices IMO using traditional valuation criteria; (4) already in a bear market with more than 20% declines from the most recent 52 week high; and (5) at the lowest price paid in my current chain or restarting a position previously sold at a much higher price.
I am using only some of my weekly cash flow from interest payments to fund these purchases.
A continued decline in dividend paying stocks will result in using all of that cash flow to buy stocks which is an approach that I used in the October 2008-January 2009 period before making a major shift out of investment grade bonds into stocks starting in February 2009. I now have far more cash flow than I did back in 2008.
In a recent post, I included snapshots of the interest and dividend payments in 1 taxable account over a 2 day period: Item # 3 (4/4/25 Post)
Trump finally got the message that the markets were sending about the negative impacts from the U.S. "reciprocal" tariffs which were not reciprocal at all and had no relationship whatsoever to the tariffs charged by foreign countries on U.S. exports. Trump pauses reciprocal tariffs for 90 days, increases China tariffs to 125% - CBS News No one knows whether the lesson will stick for more than 90 days. Trump acts solely on impulse generated by his own reality creations.
The U.S. tariff increases were calculated by first dividing the U.S. trade deficit number by the amount of the exports to the U.S. and then dividing the result by 2. Trump's Misleading Tariff Chart-FactCheck.org (the EU countries were treated as a unit).
I am averaging down in stock purchases and am frequently buying back shares recently sold at higher prices.
Most stocks are in a falling knife mode, so lot sizes will be small with frequent averaging down for as long as this continues.
Anyone buying stocks now has to accept that purchases may only add to unrealized losses with no way of knowing how long it will take for the worm to turn.
This is just a sample of my scatter shot small ball buying.
A. Added 5 FNLC at $23.1:
Quote: First Bancorp Inc. (FNLC)
Cost: $115.5
FNLC is a bank holding company. The operating bank is known as the First National Bank based in Damariscotta, Maine with 18 banking locations in mid-coast and eastern Maine.
There are no analyst estimates.
52 Week High: $31.05
% Decline from $31.05 to $23.1: 25.6%
Last Discussed: Item # 1.G. Restarted FNLC - Bought 10 at $26.075 (1/22/25 Post)
Investment Category: Regional Bank Basket Strategy
Last Elimination: Item # 3.I. Eliminated FNLC - Sold 10 at $29.56 (11/21/24 Post)(profit snapshot = $95.06)
New Average cost per share: $25.07 (25 shares)
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| Price as of 4/4/25 Close |
Dividend: Quarterly at $.36 per share ($1.44 annually), last raised from $.35 effective for the 2024 third quarter payment. The quarterly dividend was at $.21 per share in the 2015 first quarter.
Yield at New AC: 5.74%
Last Ex Dividend: 4/8/25 (owned all as of)
Last Earnings Report (Q/E 12/31/24):
SEC Filed Earnings Press Release
Comparisons are to the 2023 4th quarter.
Diluted E.P.S. $.65, up from $.60
NIM 2.42%, up from 2.34%
GAAP Efficiency Ratio: 55.23%, down from 56.05% (down is good for this ratio)
NPA Ratio: .14% (excellent)
NPL Ratio: .18% (excellent)
Charge Off Ratio: .02% (excellent)
ROE = 11.27%
ROTE: 12.81%
Tangible Book Value per share: $19.87, up from $19.12
Total Risk Based Capital Ratio: 13.21%
Dividend payout ratio: 54.71%
Purchase Restriction: 5 share lot purchases with each lot required to be at the lowest price in the chain.
Maximum Position: 50 shares
FNLC Realized Gains to Date: $1,339.54
Largest Realized Gains: The 3 largest gains were realized on two 50 share lots sold in 2016 and 100 shares sold in 2015:
B. Added 5 GOOD at $14.09; 5 at $13.4; 5 at $13 - Schwab Account:
Quote: Gladstone Commercial Corp. (GOOD) - Externally Managed REIT
Cost: $202.45
52 Week High at $17.88
I have pared my position in my Fidelity account down to 30 shares with an average cost per share of $6.76. Item # 1.C. Sold 5 GOOD at $14.77 (4/4/25 Post) I discussed the last earnings report in that post. SEC Filed Press Release
I decided to start this position in my Schwab account as an income option in that account where the sweep account, used as a source for stock purchases, pays only .05% as noted above.
Average cost per share this account: $14.54 (30 shares)
Dividend: Monthly at $.10 per share
Dividend History-Gladstone Commercial Corporation (GOOD)
Yield at New AC: 8.25%
Last Ex Dividend: 3/19/25
C. Added 5 NSA at $32.8:
Quote: National Storage Affiliates Trust (NSA) - Internally Managed Storage REIT
Cost: $164
52 week high at $49.44
I mentioned this purchase in a comment published on 4/7/25.
Portfolio Summary as of 12/31/24:
Website: National Storage Affiliates Trust (NSA)
Last Discussed: Item # 2.J. Added to NSA - Bought 5 at $36.07 (1/15/25 Post) I discussed the 2024 third quarter report in that post.
Last Sell Discussions: Item # 2.C. Pared NSA in Fidelity Account - Sold 5 at $48.54 (9/19/24 Post)(profit snapshot = $52.95); Item # 2.B. Eliminated Duplicate Position in NSA - Sold 7 at $41.91 (Schwab Account) and Pared NSA in Fidelity Account Sold 5 at $53 (8/15/24 Post)(profit snapshots = $67.91)(mentioning in that report that I was not impressed with the 2024 second quarter earnings report, SEC Filing)
New Average cost per share: $34.37 (25 shares)
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| Snapshot Intraday on 4/7/24 after add |
Dividend: Quarterly at $.57 per share ($2.28 annually), last raised from $.56 effective for the 2024 4th quarter payment. The rate was at $.20 per share in the 2015 4th quarter payment.
NSA Stock Dividend History & Date | Seeking Alpha
Yield at $34.37: 6.63%
Yield at $32.8: 6.95%
Last Ex Dividend: 3/14/25
Last Earnings Report (Q/E 12/31/24): SEC Filing
Revenue: $190.118M
GAAP E.P.S. $.15
FFO per share: $.59
Core FFO per share: $.6
Reconciliation GAAP to Core FFO:
The largest add back to GAAP net income when computing funds from operations was the noncash $47.77M depreciation expense. The 2023 4th quarter had a downward adjustment of $63.91M from GAAP net income to remove gains from property sales. Dividends paid to preferred stock shareholders is a deduction from GAAP net income since those funds are not available to common shareholders.
Occupancy: 84.4%, down 140 basis points from the 2023 4th quarter. This is concerning.
Equity Preferred Stock: I own shares of NSA.PRA that has a 6% coupon paid on a $25 par value.
D. Added to NWBI - Bought 5 at $11.2; 5 at $10.9:
Cost $110.5
52 Week High at $15.42
2024 SEC Filed Annual Report NWBI, a bank holding company, owns Northwest Bank that had "141 community-banking locations throughout its market area in Pennsylvania, western New York, eastern Ohio, and Indiana" as of 12/31/24. (page 2)
NWBI Analyst Estimates | MarketWatch
Investment Category: Regional Bank Basket Strategy
Last Buy Discussion: Item # 1.E. Restarted NWBI - Bought 10 at $13.09 (1/22/25 Post) There were several small ball buys after this initial purchase that were not discussed here.
Last Elimination: Item # 3.A. Eliminated NWBI - Sold 20 at $15.05 (11/21/24 Post)(profit snapshot = $76.6) I discussed the 2024 third quarter report in that post. SEC Filed Earnings Press Release
Recent News: Northwest Bancshares, Inc. Announces Agreement to Acquire Penns Woods Bancorp, Inc. (12/17/24) ("Excluding one-time transaction costs, Northwest expects the transaction to be approximately 23% accretive to 2026 fully diluted earnings per share. Tangible book value dilution is expected to be approximately 9% at closing, with an expected tangible book value earn-back period of under 3 years using the “cross-over” method.") Penns Woods owns Jersey Shore Bank and Luzerne Bank. This is a stock acquisition.
New Average cost per share: $12.12 (31 shares)
Dividend: Quarterly at $.20 per share
NWBI Dividend History | Seeking Alpha
Yield at New AC = 6.6%
Last Ex Dividend: 2/3/25
Last Earnings Report (Q/E 12/31/24): SEC Filed Earnings Press ReleaseArnincument
Comparisons are to the 2023 4th quarter.
E.P.S. $.26, up from $.23
Non-GAAP E.P.S. = $.27, up from $.24
NIM: 3.42%, up 3.16% (a positive trend)
GAAP Efficiency Ratio: 61.8%, down from 66.93% (positive trend)
Non-GAAP Efficiency Ratio: 59.61%, down from 64.66% (excludes loss on the sale of low yielding securities that were replaced by higher yielding ones, see SEC Filed Earnings Press Release for the Q/E 6/30/24)
NPL Ratio: .54%, down from .85%
NPA Ratio: .54%, down from .67%
Charge off ratio: .87%, up from .12% (a negative)
Coverage Ratio: 188.24% (allowance for loan losses to nonperforming loans. provides a cushion)
Tangible Book value per share: $9.51, up from $9.17
Other Sell Discussions: Item # 1 Sold 156+ NWBI at $12.52 (6/30/11 Post); Item # 2 Sold 50 NWBI at $12.5 (2/22/11 Post)
NWBI Realized Gains to Date: $293.51
Maximum Position: 100 shares
Purchase Restriction: Each subsequent purchase has to lower my average cost per share and can not exceed 10 shares per purchase. These kind of restrictions are on all stock purchases as a risk mitigation strategy.
Goal: 2%+ annual realized gain on the shares plus the dividend
E. Added to ETB - Bought 5 at $12:
Quote: Eaton Vance Tax-Managed Buy-Write Income Fund Overview - A CEF
Cost: $60
The fund's strategy consists of owning owning a portfolio of common stocks and selling covered S&P 500 call options on a continuous basis.
Investment Category: Monthly Income Generation
Last Discussed: Item # 1.D. Started ETF - Bought 10 at $14.04 (8/21/24 Post); Item # 1.C. Restarted ETW - Bought 100 at $8.29 - Fidelity Account (8/21/24 Post)
Sponsor's website: Tax-Managed Buy-Write Income Fund (ETB)
Eaton Vance Tax-Managed Buy-Write Income Fund - SEC Filed 2024 Annual Report.
Data Date of 4/7/25 Trade:
Closing net asset value per share: $13.39
Closing Market Price: $12.03
Discount: -10.16%
Average 3 Year Discount: -2.15%
Sourced: ETB - CEF Connect (Click "Pricing Information" Tab)
New Average cost per share: $13.18 (16 shares)
Dividend: Monthly at $.1058 per share ($1.2696 annually), last raised from $.0932 effective for the April 2024 payment.
ETB Stock Dividend History & Date | Seeking AlphaROC Supported.
Yield at New AC: 9.63%
Next Ex Dividend: 4/15/25
F. Added 10 ETW at $7.77 - Fidelity Account:
Quote: Eaton Vance Tax-Managed Global Buy-Write Opportunities Fund Overview
Cost: $77.7
Investment Category: Monthly Income Generation
Last Buy Discussion: Item # 3.E. Added to ETW - Bought 10 at $8.13 (9/14/24 Post)
I bought back the 10 of the 20 shares sold last February at $8.57 and $8.65:
Eaton Vance Tax-Managed Global Buy-Write Opportunities Fund - SEC Filed 2024 Annual Report
Sponsor's website: Eaton Vance
New Average cost per share this account:
Dividend: Monthly at $.0664 per share ($.7968)
ETW Dividend History & Date | Seeking Alpha
ROC Supported:
Yield at New AC this account: 8.22% (100 shares)
Next Ex Dividend: 4/15/25
Data Date of 4/11/25 Trade:
Closing Net Asset Value per share: $8.57
Closing Market Price: $7.81
Discount: -8.98%
3 Year Average Discount: -8.41%
Sourced: ETW - CEF Connect (Click "Pricing Information" Tab)
G. Added 5 LXP at $7.3 - Schwab Account:
The preceding snapshot includes my last two sales and my prior buy at $7.75. This is typical small ball trading, a risk reduction strategy that I use, where I sell my highest cost lots profitably and repurchase shares previously sold at the lowest price in the chain. I did not discuss the 2025 LXP sales which were profitable.
Quote: LXP Industrial Trust (LXP) - Internally Managed REIT
Cost: $36.5
52 Week High at $10.57
Investment Category: Equity REIT Common and Preferred Stock Basket Strategy
LXP SEC Filed 2024 Annual Report: As of 12/31/24, LXP "had equity ownership interests in approximately 119 consolidated real estate properties, located in 17 states and containing an aggregate of approximately 57.8 million square feet of space, approximately 93.6% of which was leased." During 2024, LXP disposed of its remaining consolidated office properties. (p. 4). A list of consolidated properties can be found starting at page 27. A list of non-consolidated properties where the ownership interest is at 20% can be found at page 30. A majority of properties are net leased, page 43.
Website: LXP Industrial Trust - Preeminent single-tenant U.S. industrial REIT
15 Largest Tenants as of 12/31/24:
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| Page 32 |
Senior Notes Outstanding:
Last Buy Discussion: Item # 2.A. Added to LXP - Bought 10 at $7.75 (1/15/25 Post)
New Average cost per share this account: $7.77 (35 shares)
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| Snapshot Intraday on 4/8/25 after add |
Dividend: Quarterly at $.135 per share ($.54 annually)
Yield at New AC: 7.01%
Yield at $7.3: 7.4%
Last Ex Dividend: 3/31/25
Last Earnings Report (Q/E 12/31/24): SEC Filed Earnings Press Release
GAAP E.P.S. = $.13
Diluted FFO per share: $.21
AFFO per share: $.16
GAAP to AFFO Reconciliation:
This REIT has proven that it is not suitable for a long term hold. I have been successful so far in trading it.
Other Sell Discussions: Item # 2.D. Eliminated Duplicate Position in LXP - Sold 20 at $10.29 - Fidelity Account (7/26/24 Post)(profit snapshot = $32.25); Item # 1.D. Eliminated LXP - Sold 20+ at $11.57 (2/13/23 Post)(profit snapshot = $33.37); Item # 1.C. Sold 137+ LXP at $9.08 and 53 at $9.06 In 2 Separate Roth IRA Accounts (9/12/18 Post)(profit snapshot = $914.11); Sold 100 LXP in Fidelity Roth IRA at $11.15 (1/6/17 comment- profit of $271.9 referenced with no snapshot)(snapshot in Gateway Post for Equity REITs); Item # 2 Sold 250 LXP on Ex-Dividend Date in Two Taxable Accounts-Update For Equity REIT Basket Strategy As Of 4/6/16 - South Gent | Seeking Alpha (profit snapshot = $224.65); Item # 1.B. Eliminated LXP - Sold 155+ at $9.46 (6/26/19 Post)(profit snapshot = $6.37); Item # 1.B. Sold 108+ LXP at $9.45-Used Commission Free Trade (2/6/19 Post)(profit snapshot = $79.9);; Item # 1 Sold 150 LXP in Vanguard Roth IRA-Update For Equity REIT Basket Strategy As Of 6/24/16 - South Gent | Seeking Alpha (profit snapshot = $80.19); Item # 1. Sold 54 LXP at $11.44 Vanguard Roth IRA (1/27/15 Post)(profit snapshot = $64.4); Item # 1 Sold 101+ LXP at $10.65 (10/28/14)(profit snapshot = $51.76)
H. Restarted WASH - Bought 1 at $26.57; 2 at $25.55:
Quote: Washington Trust Bancorp Inc. (WASH)
Cost: $77.67
52 Week High at $40.59
WASH "completed an underwritten public offering of 2,198,528 shares of its common stock at a public offering price of $34.00 per share. The net proceeds from the offering were approximately $70.5 million."
Last Eliminations: Item # 1.E. Eliminated WASH - Sold 10 at $32.32 (8/2/24 Post)(profit snapshot = $4.64); Item # 2.I. Eliminated WASH in my Schwab Account - Sold 14+ ast $32.2 (7/26/24 Post)(profit snapshot = $41.29)
Average Cost per share: $25.89 (3 shares)
Dividend: Quarterly at $.56 per share ($2.24 annually)
The dividend payout ratio is far too high based on recent quarterly earnings reports. Without a significant improvement soon, there needs to be a slash in the penny rate IMO.
Yield at AC = 8.65%
Last Ex Dividend: 4/1/25
Last Earnings Report (Q/E 12/31/24): SEC Filed Earnings Press Release
Comparisons are to the 2024 4th quarter.
GAAP E.P.S. ($3.46)
"The Bank sold available for sale debt securities with an amortized cost balance of $409 million (fair value of $378 million) and a weighted average yield of 2.65% and reinvested $378 million into purchases of available for sale debt securities with a weighted average yield of 5.30%. The sale of debt securities resulted in a net pre-tax realized loss of $31.0 million (after-tax of $23.5 million) that was recognized in the fourth quarter of 2024."
As previously discussed many times here, banks made no meaningful change in the duration of their owned bonds and mortgage backed securities during 2021 when it was obvious that problematic inflation would cause a major spike in interest rates but yields were still low due to the Federal Reserve suppressing yields far below the inflation rate through ZIRP and Q/E.
In other words, those securities could have been sold profitably in 2021 or at minimal losses. Instead, the banks held onto to them which contributed to lower net interest margins for several years. Most banks were heavily weighted in low yielding mortgage backed securities in 2021 whose duration increased with the rise in interest rates that started in 2022.
Some banks decided to sell the low yielding securities at a loss, take the significant earnings hit in 1 quarter, and then reinvest the proceeds into higher yielding ones that will improve the net interest margin over time compared to keeping the low yielding ones on the balance sheet.
Adjusted E.P.S. $.56, down from $.6
Consensus estimate per Schwab: $.55
NIM: 1.95% (very poor)
Adjusted Efficiency ratio: 70% (unacceptable IMO)
Charge Off Ratio: .14% (good)
NPL Ratio: .34%, down from .63% (improving trend with the current number being okay)
Coverage Ratio: 180.03% (allowance for credit losses already taken to non-performing loans, prefer having a cushion of over 100% when making a purchase, so this is viewed as a favorable number for a new purchase)
Tangible Book Value per share: $22.46, down from $23.78
WASH Realized Gains to Date: $2,724.68
Most of the realized gain was from a 50 share lot sold in 2018: Item # 2. Eliminated WASH-Sold 50 at $61.53 (6/25/18 Post)(profit = $2,309.26)
The second largest gain was a a 50 share lot sold in 2011. Item # 2. Sold 50 of 100 WASH at $22.44 (1/5/11 Post)(profit snapshot = $347.03)
Trading gains can at times be significant when buying after one of the periodic price meltdowns. It is not surprising that most of trading gains in WASH originated from purchases made in the wake of the 2008 Near Depression.
Goal: 2% annualized realized gain on the shares + several dividend payments.
I. Added to BP - Bought 1 at $28.51; 1 at $27.08; 1 at $26.16:
Quote: BP PLC ADR
52 Week High at $40.4
British Pence: BP PLC (U.K.: London)
100 Pence = 1£
Convert 1 British Pound to US Dollar - GBP to USD Exchange Rates | Xe
Cost: $81.75
The stocks of E&P companies have been in a dive mode as energy prices tank on worldwide recession fears. Refining margins have been awful as well. Buying the stocks now will most likely require a long period of patience and averaging down before reaching an acceptable total return number.
Cushing, OK WTI Spot Price FOB (Dollars per Barrel)
Last Discussed: Item # 1.D. Restarted BP - Bought 5 at $31.51 (1/22/25 Post) I discussed the 2024 third quarter report in that post. SEC Filing
Last Elimination: Item # 1.A. Eliminated BP-Price Range $31.2-$31.33 (3/17/22 Post)(profit snapshot = $190.44)
New Average cost per share: $29.91 (8 shares)
Dividend: Quarterly at $.48 per share ($1.92 annually), last raised from $.4362 effective for the 2024 third quarter.
BP Dividend History & Date | Seeking Alpha
Yield at $29.91: 6.42%
Last Ex Dividend: 2/21/25
Last Earnings Report (Q/E 12/31/24): SEC Filing
Underlying profit per ADR: $.44, down from $1.07
2025 is shaping up to be worse than 2024 for integrated energy companies.
Analyst Reports (available to Schwab customers):
Argus (2/12/25): Hold and lowered 2025 E.P.S. estimate to $3.29 from $4.91 to reflect weak energy prices and soft refining performance, and that was done prior to the recent plunge in energy prices.
S&P (2/12/25): 2 stars with a 12 month PT of $25.
Morningstar (2/27/25): 4 stars with an estimated fair value of $38.
Goal: Realized annualized gain on the shares of 2%+ plus the dividend.
Maximum Position: 50 shares based on challenging risk environment
Purchase Restriction: 1 to 5 shares with each lot required to be at the lowest price in the chain recognizing the strong downtrend in the stock price with no discernible bottom yet in place IMO.
J. Added 1 PLYM at $14.75; 2 at $14.4; 5 at $14; 5 at $13.1 - Schwab Account:
Quote: Plymouth Industrial REIT Inc. (PLYM) - Internally Managed REIT
K. Added to UPS - Bought 1 at $95.5:
Quote: United Parcel Service Inc. Cl B (UPS) | MarketWatch
Cost: $95.5
52 Week High at $153.42
UPS Analyst Estimates | MarketWatch (As of 4/11/25, the consensus E.P.S. estimate for 2025 is $8.1; at $8.95 for 2026; and at $9.64 in 2027).
UPS has decided to cut back on the number of Amazon parcels that it delivers due to the low margins.
UPS SEC Filed 2024 Annual Report
2024 Compared to 2023: Diluted E.P.S. $6.75, down from $7.8.
 |
| Page 24, Annual Report |
Average cost per share: $106.13 (3 shares)
Dividend: Quarterly at $1.64 per share ($6.56 annually), last raised from $1.63 effective for the 2025 first quarter payment. The penny rate was at $.73 in 2015.
UPS Stock Dividend History & Date | Seeking Alpha
Yield at $106.13: 6.18%
Yield at $95.5: 6.87%
Last Ex Dividend: 2/18/25
Last Earnings Report (Q/E 12/31/24): SEC Filed Earnings Press Release
Revenues: $25.3B, up from $24.9B
GAAP E.P.S. $2.01
Non-GAAP E.P.S. = $2.75, up from $2.47
GAAP to Non-GAAP Reconciliation:
L. Added to PINE - Bought 2 at $15.7:
Quote: Alpine Income Property Trust Inc. (PINE) - Externally Managed by a subsidiary of CTO Realty Growth Inc. (CTO)
Cost: $31.4
52 Week High at $19.42
Investment Category: Equity REIT Common and Preferred Stock Basket Strategy
Last Discussed: Item # 4.G. Pared PINE - Sold Highest Cost 15 Shares at $18.47 - Fidelity Account (8/26/24 Post); Item # 2.E. Eliminated Duplicate Position in PINE - Sold 11 at $17.11 - Schwab Account (7/26/24 Post)(profit snapshot = $21.07)
PINE 2024 SEC Filed Annual Report (list of properties starts at p. 7)
 |
| Page 3, Annual Report |
Property Portfolio — Alpine Income Property Trust, Inc.
Average cost per share: $16.65 (35 shares)
Dividend: Quarterly at $.285 per share ($1.14 annually), last raised from $.28 per share effective for the 2025 first quarter payment. The penny rate was $.20 in the first quarter of 2020.
PINE Stock Dividend History & Date | Seeking Alpha
Yield at $16.65 AC: 6.84%
Yield at $15.7: 7.26%
Last Ex Dividend: 3/13/25
Last Earnings Report (Q/E 12/31/24):
SEC Filed Press Release and SEC Filed Investor Presentation
Revenues: $13.398M
GAAP E.P.S. ($.06)
FFO and AFFO per share: .44
134 properties net leased
Rentable Square Footage: 3.9M
Weighted average remaining lease term = 8.7 years
98% Occupied
Top Tenants:
The exposure to Family Dollar and Walgreens is a negative IMO. Both chains have been closing stores. Dollar Tree is in the process of selling Family Dollar and the preceding snapshot combines Dollar Tree and Family Dollar. The company noted in this press release that it had reduced its exposure to Walgreens.
2025 Guidance: AFFO per share $1.7 to $1.73
The company will also make loans secured by real estate.
 |
| Page 53 Annual Report |
M. Added to FLO - Bought 3 at $18:
Quote: Flowers Foods Inc.
Cost: $54
52 Week High at $26.12
Website: Home - Flowers Foods
FLO Analyst Estimates | MarketWatch
Leading Brands: Nature’s Own, Dave’s Killer Bread, Wonder, Canyon Bakehouse, and Tastykake.
Last Discussed: Item # 1.B. Added to FLO - Bought 5 at $19.15 (1/22/25 Post) I discussed the earnings report for the fiscal quarter ending 10/5/24 in that post. SEC Filed Press Release
Last Elimination: Item # 1.C. Eliminated FLO -Sold 20 at $28.3 (1/27/22 Post)(profit snapshot = $119.76)
SEC Filed 2024 Annual Report for the fiscal year ending 12/28/24
Recent Material News: Flowers Foods Completes Acquisition of Simple Mills Mills (2/21/25)-Flowers Foods to Acquire Simple Mills for $750M in Cash To fund that acquisition, FLO sold $500M of 5.7% SU notes maturing in 2035 and $300 of 6.2% SU notes maturing in 2055. Prospectus
Average cost per share: $19.28 (15 shares)
Dividend: Quarterly at at $.24 per share ($.96 annually), last raised from $.23 effective for the 2024 second quarter payment.
FLO Stock Dividend History & Date | Seeking Alpha
Yield at $19.28 AC = 4.98%
Yield at $18: 5.33%
Last Ex Dividend: 2/28/25
Last Earnings Report (F/Q ending 12/28/24): Flowers Foods Reports Fourth Quarter Results
Diluted E.P.S. $.20
Adjusted E.P.S. $.22
Net Sales decreased 1.6% to $1.111B "as positive pricing/mix was more than offset by volume declines", a widespread issued in the packaged food sector. Price increases to recoup input cost inflation have resulted in lower volumes.
N. Added to CUBE in Schwab Account - Bought 1 at $35.11; 1 at $36.66:
Quote: CubeSmart - Storage REIT
Cost: $71.77
52 Week High at $55.14
Investment Category: Equity REIT Common and Preferred Stock Basket Strategy
CUBE SEC Filed 2024 Annual Report
Properties:
 |
| Page 30 Annual Report |
CUBE also "managed 902 stores for third parties (including 77 stores containing an aggregate of approximately 5.6 million net rentable square feet as part of six separate unconsolidated real estate ventures), bringing the total number of stores we owned and/or managed to 1,533."
Last Discussed: Item # 1.K. Sold 1 CUBE at $50.25 - Fidelity Account (12/5/24 Post)(profit snapshot = $28.48) I discussed the 2024 third quarter report in that post. The average cost per share in that account is $21.03 with some ROC adjustments to the original cost numbers.
Last Buy Discussion: Item # 2.E. Bought 19 CUBE at $22, 2 at $21.55, 1 at $19.74 (4/25/20 Post)
Average Cost per share: $38.86 (5 shares)
 |
| Snapshot Intraday on 4/9/25 after last 1 Share add |
Dividend: Quarterly at $.52 per share ($2.08 annually), last raised from $.51 effective for the 2025 first quarter payment.
CUBE Dividend History & Date | Seeking AlphaYield at $38.86: 5.39%
Last Earnings Report (Q/E 12/31/24):
SEC Filed Earnings Press Release
Revenues: $231.408M
Period end occupancy: 89.3%
Realized Annual Rent per square foot: $22.89
GAAP E.P.S. $.45
FFO per share: $.68
2025 1st Quarter and 2025 Guidance:
Other Sell Discussions: Item # 1.L. Sold 1 CUBE at $53.15 (9/24/21 Post)(profit snapshot = $31.38); Item # 3.E. Pared CUBE - Sold 3 at $47.49 (7/23/21)(profit snapshot = $77.16)
Owned CUBE SU Bonds: 16
I prefer owning the bonds.
10 of the 4% Maturing on 11/15/25, Bond Page | FINRA.org
2 of the 3.125% Maturing on 9/1/2026, Bond Page | FINRA.org
4 of the 4.375% Maturing on 2/15/29,
O. Added to UDR - Bought 1 at $37.47; 1 at $38.79:
Cost: $76.26
52 Week High at $47.55
"UDR is a self-administered real estate investment trust, or REIT, that owns, operates, acquires, renovates, develops, redevelops, disposes of, and manages multifamily apartment communities in targeted markets located in the United States. At December 31, 2024, our consolidated real estate portfolio consisted of 169 communities located in 21 markets, consisting of 55,696 completed apartment homes, which are held directly or through our subsidiaries, including the Operating Partnership and the DownREIT Partnership, and consolidated joint ventures. In addition, we have an ownership interest in 10,860 completed or to-be-completed apartment homes through unconsolidated joint ventures or partnerships, including 6,436 apartment homes owned by entities in which we hold preferred equity investments.
Investment Category: Equity REIT Common and Preferred Stock Basket Strategy
Last Discussed: Item # 2.F. Added 1 UDR at $41.14; 1 at $40.73 (1/15/25 Post)
Investment Category: Equity REIT Common and Preferred Stock Basket Strategy
New Average cost per share: $43.3 (24 shares)
 |
| Snapshot Intraday on 4/9/24 after last 1 share add |
Dividend: Quarterly at $.425 per share ($1.7 annually), last raised from $.42 effective for the 2024 second quarter payment. For the 2014 4th quarter, UDR paid a quarterly dividend of $.26.
UDR Dividend History & Date | Seeking AlphaLast Ex Dividend: 4/10/24
Last Earnings Report (Q/E 12/31/24):
SEC Filed Earnings Press Release and Supplemental
Revenues: $422.728M
Physical Occupancy: 96.8%
FFO per share: $.48, adjusted FFO at $.63
AFFO per share: $.54 (reduces adjusted FFO by $31.62M for maintenance costs which are heavy for apartment owners). The AFFO per share number is significantly higher than the quarterly dividend which is important IMO.
GAAP to FFO Reconciliation:
Owned SU UDR Bonds: I own several UDR SU bonds maturing in 2026, 2027, 2028 and 2029
Credit Ratings: BBB+, Baa1
I refer to this as stacking:
Finra Links
4 of the 2026 UDR 2.9% SU
5 of the 2027 UDR 3.5% SU
2 of the 2028 UDR 3.5% SU
2 of the 2029 UDR 4.4% SU
P. Added to CHCT - Bought 10 at $16.38; 10 at $15.85; 10 at $15:
Quote: Community Healthcare Trust Inc. (CHCT) - Healthcare REIT
Cost: $472.25
52 Week High at $27.62
I am not having to wait long before averaging down. I am slowly working my way up to a maximum position of 100 shares.
CHCT SEC Filed 2024 Annual Report
Properties: 200 with 4.4M rentable square feet
 |
| Page 6, Annual Report |
Leased at 90.9% with a weighted average remaining lease term of 6.7 years.
3 Years - Financial Metrics:
 |
| Page 60, Annual Report |
New Average cost per share: $17.38 (58 shares)
Dividend: Quarterly at $.4675 per share ($1.87 annually)
CHCT Stock Dividend History & Date | Seeking Alpha
Yield at New AC: 10.76%
Last Ex Dividend: 2/24/25
Last Earnings Report (Q/E 12/31/24):
SEC Filed Earnings Press Release and SEC Filed Supplemental (property locations listed at pages 16-22;
Revenues: $29.298M
GAAP E.P.S. = $.03
FFO per share: $.48
AFFO per share: $.55 (adds back share based compensation to FFO)
Q. Restarted FIBK - Bought 5 at $23.9 - Schwab Account:
The preceding snapshot includes my last elimination in this account at $33.9.
Quote: First Interstate Bancsystem (FIBK)
Cost: $119.5
52 week high: $36.77
"First Interstate BancSystem, Inc. is a financial and bank holding company focused on community banking. Incorporated in 1971 and headquartered in Billings, Montana, the Company operates banking offices, including detached drive-up facilities, in communities across Arizona, Colorado, Idaho, Iowa, Kansas, Minnesota, Missouri, Montana, Nebraska, North Dakota, Oregon, South Dakota, Washington, and Wyoming."
Investment Category: Regional Bank Basket Strategy
Dividend: Quarterly at $.47 per share ($1.88 annually), last raised from $.41 effective for the 2022 4th quarter payment.
FIBK Stock Dividend History & Date | Seeking Alpha
The dividend payout ratio is too high given the recent quarterly E.P.S. numbers.
Yield at $23.9: 7.87%
Last Ex Dividend: 2/10/25
Last Discussed: Item # 3.H. Eliminated FIBK - Sold 10 at $33.9 (11/21/24 Post)(profit snapshot = $99.45) I discussed the 2024 third quarter earnings report in that post. SEC Filed Press Release
Last Buy Discussion: Item # 2.A. Bought 5 FIBK at $24.13; 5 at $23.7 (11/11/23 Post)
Last Earnings Report (Q/E 12/31/24): SEC Filed Earnings Press Release
Comparisons are to the 2023 4th quarter.
Overall, I had a negative reaction to this report which explains the small restart.
Diluted E.P.S. $.50, down from $.59 (unfavorable and down from $.54 in the 2024 third quarter)
NIM: 3.2%, up from 3.01% (primary favorable trend)
Efficiency Ratio: 60.2%, down from 64.25% (down is better than up but prefer less than 60% and closer to 50% than 60%)
NPL Ratio: .78%, up from .58% (unfavorable)
Charge off ratio: 1.22%, up .1% (significantly unfavorable and in a steady quarter-to-quarter uptrend)
Coverage Ratio: 144.4% (favorable for a new purchase)
"Criticized loans increased $170.0 million to $773.3 million as of December 31, 2024, compared to $603.3 million as of September 30, 2024, driven mostly by downgrades in the commercial real estate loan portfolio, and increased $85.0 million, compared to $688.3 million as of December 31, 2023."
Tangible Book Value per share: $20.16, up from $19.41
Other Sell Discussion: Item # 2.C. Sold 51+ FIBK at $19.33 (3/25/13 Post)(profit snapshot = $175.18)
R. Added 1 CPB at $37.13:
March-April 2025 Transactions
The preceding snapshot includes my last sale of 5 shares at $43.16 (3/10/25). I mentioned that pare when I discussed buying 2 CPB SU bonds.
Quote: Campbell's Co. (CPB)
52 week high: $52.81
CPB Analyst Estimates | MarketWatch
Recent Material News: Campbell Completes Acquisition of Sovos Brands, Inc.
Last Discussed: Item # 2.D. Added to CPB - Bought 2 at $38.5; 3 at $37.9 (1/15/25 Post)
Average cost per share: $38.39 (16+ shares)
Dividend: Quarterly at $.39 per share ($1.56 annually)
Yield at New AC = 4.06%
Last Ex Dividend: 4/3/25
Last Earnings Report (F/Q ending 1/26/25): This is the second fiscal quarter for the 2025 fiscal year.
Organic net sales down 2%
E.P.S. = $.58
Adjusted E.P.S. $.74, down from $.8
GAAP to Non-GAAP Reconciliation
Updated Fiscal 2025 Guidance: Adjusted E.P.S. $2.95-$3.05
 |
| Guidance does not include tariff impacts |
CPB Realized Gains to Date: $919.04
Largest Gain: Item # 3 Sold 70 CPB at $35.79 (9/8/2010 Post)(profit snapshot = $714.84)
Second Largest Gain: Item # 3 Sold 50 CPB at $41 (8/5/18 Post)(profit snapshot $117.18)
2. $1,000 Par Value Corporate Bond Purchases:
Volatility in the U.S. treasury market with a persistent rise in intermediate and longer term yields has spilled over into the investment grade corporate bond prices.
Fed's Kashkari says rising bond yields, falling dollar show investors are moving on from the U.S.
U.S. Treasury yields: tariffs-led sell-off continues (4/11/25)
US Dollar Index Historical Prices & Data - Yahoo Finance
Treasury Yield Curve April 2025:
Real Yield Curve April 2025:
As of last Friday's close, the CME FedWatch tool had a 68.7% probability that the FED will cut the Federal funds range by at least 25 basis points on or before the June 2025 meeting. CME FedWatch - CME Group That probability had decreased from 94.4% as of 4/4/25. The inflation uncertainty created by the U.S. tariffs may put the FED in a wait and see posture.
Odds as of the December 2025 meeting:
 |
| Odds at 77.9% of at least a 50 basis point cut |
A. Bought 2 T-Mobile USA 5.375% SU Maturing on 4/15/27 at a Total Cost of 99.922:
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Issuer: Wholly owned subsidiary of T-Mobile US Inc. (TMAS) who guarantees the notes along with the subsidiaries of T-Mobile USA as provided in the prospectus
Prospectus at pages S-4,S-5, S-34 & S-35
TMUS Analyst Estimates | MarketWatch
TMUS SEC Filed Earnings Press Release for the Q/E 12/31/24
Prospectus The bond is callable at par value plus accrued and unpaid interest on or after 4/15/25 (pages S-38-39) I have not yet seen a notice for exercising an early redemption.
Finra Page: Bond Page | FINRA.org
Credit Ratings: Baa2/BBB
YTM at Total Cost: 5.416%
Current Yield at TC: 5.379%
The current yield being close to the YTM is a positive for me as as is maturity in about 2 years.
B. Bought 2 TR Financial 3.35% SU Maturing on 5/15/26 at a Total Cost of 98.29:
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Issuer: Wholly owned subsidiary of Thomson Reuters Corp. (TRI) who guarantees the notes along with the TR Finance subsidiaries:
TRI Analyst Estimates | MarketWatch
TRI SEC Filings (foreign issuer forms)
TRI SEC Filed Annual Report Debt is listed at pages 115-116.
SEC Filed Earnings Press Release for the Q/E 12/31/24
Finra Page: Bond Page | FINRA.org
Credit Rating: Baa1
Fitch has a BBB+ rating. Fitch Rates TR Finance LLC's Proposed Bonds 'BBB+'
YTM at Total Cost: 4.977%
Current Yield at TC: 3.408%
C. Bought 2 Advance Auto Parts 5.9% SU Maturing on 3/9/26 at a Total Cost of 99.6:
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Issuer: Advance Auto Parts Inc. (AAP)
AAP Analyst Estimates | MarketWatch
I eliminated my small ball stock position in AAP: Item # 4.A. Sold 10 AAP at $44.5 (11/21/24 Post)
This is my first junk rated bond purchase in at least a year.
Advance Auto Parts SU bonds are "fallen angels", meaning bonds that were investment grade that have fallen into junk rated territory.
There are some ETFs that own those bonds. iShares Fallen Angels USD Bond ETF (FALN), VanEck Global Fallen Angel High Yield Bond ETF (ANGL)
Junk bond prices will decline when investors become concerned about credit risks even when high quality bonds are rising in price. The YTD total return (dividends reinvested) of FALN through 4/11/25 was -2.13%. FALN- Performance – iShares Fallen Angels USD Bond ETF | Morningstar
There was 1 development that makes me slightly more comfortable owning this bond maturing in less than 1 year: Advance Auto Parts, Inc. - Advance Auto Parts Announces Closing of Sale of Worldpac to Carlyle (AAP estimated that the net proceeds were approximately $1.2B after taxes and transaction costs)
Another relevant factor for me is that this bond is the next one to mature.
2024 SEC Filed Annual Report at page 56
Another factor is that I anticipate fewer new car sales due to the republican tariff taxes substantially increasing new passenger vehicle prices, which will result in more households keeping their cars longer and needing to purchase repair parts.
There was a recent bankruptcy of an auto parts retail store chain. Another auto supply chain closing most stores, no bankruptcy filed - TheStreet
Finra Page: Bond Page | FINRA.org
Credit Ratings: Ba1/BB+
YTM at Total Cost: 6.347%
Current Yield at TC: 5.924%
D. Bought 2 Blue Owl 4.25% SU Maturing on 1/15/26 at a Total Cost of 99.3:
%204.25%25%201:15:26.png)
Issuer: Blue Owl Capital Corp. (OBDC) - Externally Managed BDC
Last Discussed: Item # 1.L. Sold 10 OBDC at $15.05 (2/10/25 Post)
Finra Page: Bond Page | FINRA.org
Credit Ratings: Baa3/BBB- (one notch above a junk rating)
YTM at TC = 5.18%
Current Yield at TC = 4.28%
I had 8 Blue Owl SU bonds mature in March 2025 (Snapshots in Item # 2.D (4/4/25 Post)
With the recent turmoil in the stock market, and the odds of a worldwide recession increasing, BDC stocks and bonds have become more risky. I am not likely to buy more Owl Rock bonds before receiving the the proceeds from the 6 bonds that I own maturing on 1/15/26.
Last Earnings Report (Q/E 12/31/24): SEC Filed Press Release
"Investments on non-accrual decreased to 0.4% of the portfolio at fair value, as compared with 0.6% as of September 30, 2024."
E. Bought 2 Brookfield Finance 4.85% SU Maturing on 3/29/29 at a Total Cost of 99.477:
%204.85%25%203:29:29%20.png)
Issuer: Whole owned subsidiary of Brookfield Asset Management Ltd. (BAM) who guarantees the notes:
BAM SEC Filed 2024 Annual Report (net income of $2.168B)
BAM SEC Filed Earnings Press Release for the Q/E 12/31/24
Finra Page: Bond Page | FINRA.org
Credit Ratings: A3/A-
YTM at Total Cost: 5%
Current Yield: 4.876%
Current Stacking of Brookfield Finance SU Bonds - Fidelity Account:
 |
| Third Party Prices as of 4/7/24 |
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3. Equity Preferred Stocks:
A. Added to AHHPRA - Bought 5 at $20.75:
Quote: AHH-PA
Cost $103.75
Issuer: Armada Hoffler Properties Inc. (AHH) - An Equity REIT
Description: Equity Preferred Stock, senior only to common stock in the capital structure
 |
| Snapshot Intraday on 4/9/25 after add |
Calculation: .0675% coupon x. $25 par value = $1.6875 annual dividend per share ÷ $21.75 AC per share = 7.7586%
Yield at $20.75: 8.13%
I also have a small position in my Schwab Account: Item # 2.B - Bought 5 at $19.59 (11/11/23 Post) Item # 4.H. Bought 10 AHHPRA at $20.3 (11/29/22 Post)
B. Bought 5 CODIPRA at $20.3:
Quote: Compass Diversified Holdings 7.25% Preferred Series A
Cost: $101.5
Issuer: Compass Diversified Holdings (CODI)
This company resembles a hedge fund that buys small companies, hopefully improves and expands operations and then will consider selling the company for a profit.
Examples of company purchases and sales:
Announces Sale of Ergobaby (12/30/24)
Compass Diversified-Backed Altor Solutions Completes Acquisition of Lifoam Industries (10/2/24)
Sale of Crosman Air Gun Business (4/30/24)
Completes Sale of Marucci Sports (11/15/23)("CODI expects to record a pre-tax gain of approximately $225 million to $245 million from the sale")
CODI Analyst Estimates | MarketWatch
I have a small ball position in the common stock.
Last Discussed: Item # 2.L. Added to CODI - Bought 5 at $18.64 (11/11/23 Post)
Coupon: 7.25% paid on a $25 par value
New average cost per share: $22.24 (30 shares)
Dividends: Quarterly at $.4531 per share and non-cumulative.
Yield at $22.24: 8.15%
Yield at $20.3: 8.93%
Next Ex Dividend: 4/15/25
Optional Redemption: On or after 7/30/22 at par plus accrued and unpaid dividends.
Stopper Clause: Yes, standard provisions. CODI can not eliminate the preferred share dividend and pay a cash dividend to common shareholders or use cash to buy common stock. The stopper clause enforces the preferred shareholders superior claim to cash compared only to the common shareholders.
Last Discussed: Item # 6.A. Added to CODIPRA - Bought 4 at $21.88 ( Post)
C. Restarted UMHPRD - Bought 10 at $21.26:
Snapshot includes last elimination at $22.62.
Quote: UMH-PD
Cost: $212.5
Issuer: UMH Properties Inc. (UMH) - A REIT that owns manufactured home communities.
I have a small ball position in the common stock.
UMHPRD Last Discussion: Item # 8.C. Eliminated UMHPRD - Sold 10 at $22.62(1/15/25 Post)(profit snapshot = $18.66)
Coupon: 6.375% paid on a $25 par value.
Dividends: Paid quarterly, cumulative and non-qualified as a pass through entity
Yield at $21.26: 7.5%
Next Ex Dividend: 5/15/25
Stopper Clause: Yes, enforces the preferred shareholders superior claim to cash against only the common share owners. (Prospectus at S-21).
Optional Call: On or after 1/22/23 at par value + accrue an unpaid dividend
4. Exchange Traded Bonds:
A. Added to ATLCZ - Bought 1 at $24.6, 2 at $24.5; 2 at $24.3; 2 at $23.7 - Fidelity Account:
Quote: Atlanticus Holdings Corp. 9.25% Senior Notes due 2029 (ATLCZ)
Cost: $169.6
Issuer: Atlanticus Holdings Corp. (ATLC)
Website: Homepage
Atlanticus Reports Fourth Quarter and Full Year 2024 Financial Results | Atlanticus Holdings Corporation (Diluted E.P.S. at $1.42, up from $1.1, net income at $26.291M)
SEC Filed 2024 Annual Report as later amendment at SEC Filing
Description: Senior Unsecured note
Coupon: 9.25%
Maturity Date: 1/31/29
Optional Call Information:
Interest Payments: Quarterly
Trades flat
Average cost per share this account: $24.84 (27 shares)
Yield at Total Cost: 9.31%
Yield at $23.7: 9.76%
Last Ex Interest Date: 4/1/25
Credit Risk: High IMO, as reflected in the yield.
Maximum Position: 50 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.
Subsequent to publishing this post, I reviewed an interview with Secretary Lutnick that cast doubt that the exemptions from the 145% announced last Friday night will last long. I am referring to the exemptions for semiconductors, phones and other electronics shipped from China.
ReplyDeletehttps://www.cnbc.com/2025/04/13/trump-commerce-chief-says-not-like-a-permanent-sort-of-exemption-for-phones-computers.html
https://www.youtube.com/watch?v=5JeBxVHfkRk
Prior to watching that interview, I thought that the market might experience a meaningful rally Monday morning driven by gains in stocks like Apple and Nvidia.
China has significantly increased its retaliatory response to our Dear Leaders tariff taxes.
ReplyDeleteChina has ordered its airline to quit accepting deliveries of Boeing jets and has reportedly stopped export of its rare earth minerals that are critical to many products. It remains unclear whether Chinese companies will be able to secure the necessary licenses to export any of those minerals. I previously discussed China's decision to place export controls on those minerals as part of its retaliation to U.S. tariff taxes.
https://www.cnbc.com/2025/04/15/us-is-unable-to-replace-rare-earths-supply-from-china-warns-csis-.html
https://www.cbsnews.com/news/china-boeing-orders-halt-to-jet-deliveries-bloomberg-trump-tariffs/
https://www.independent.co.uk/asia/china/trade-war-china-rare-earth-export-b2732710.html
Based on several reports, it will take the U.S. two years to build factories capable of refining these minerals, assuming that the U.S. can find a supply of minerals to refine sufficient quantities to meet domestic requirements which is doubtful.
I had 4 TIPs mature in my Vanguard Roth IRA account on 4/15/25.
ReplyDeleteToday, I bought at auction 1 TIP maturing on 4/15/30 at 99.6347+ that was adjusted to 99.8559+. The adjustment reflects some inflation accretion to the principal amount.
The coupon is 1.625%, with the real yield slightly higher due to the discounted price.
I have published a new post:
ReplyDeletehttps://tennesseeindependent.blogspot.com/2025/04/alex-elc-hr-htbk-mrcc-peo-rmt-sbsi-swk.html