ARE, BHK, BNS, DIN, FLGB, MFC, OFS, PFLT, PFS, PRPFX, REYN, SBRA, TAPRH:CA, VLY

Dollar Values of Trades Discussed in this Post: 

Inflow Small Ball Common Stock Purchases: $720.95

Outflow Small Ball Common Stock and Fund Sells: $1,669.95

Profit Common Stock/Fund Sells: $607.02

Net Outflow Common Stocks/Funds: $949

Corporate Bonds: $14,000 in principal amount

I am one week behind in discussing corporate bond purchases. All of the corporate bonds purchased this week will be discussed in my next post. 

Treasury Bills: $16,000 in principal amount

Outflow Canadian Reset Equity Preferred Stock: C$2,457

Profit Canadian Reset Sold: C$803 (100 shares of TA:PRH:CA, Item # 1)

5 year TIP breakeven inflation rate as of 6/11/25:  2.3%  

5-Year Breakeven Inflation Rate -St. Louis Fed

CME FedWatch - CME Group As of 7:00 A.M, 6/12/35, the probability of a 25 basis point cut in the federal funds range on or before the July meeting was at 20.6%. The probability of at least a 25 basis cut on or before the September meeting was then at 75.9%. 

Reckoning Is Coming for US Treasuries, Says Gundlach - YouTube;  Gundlach says gold is no longer for lunatics as the bond king says wait to buy the 30-year - MarketWatch (subscription publication) Gundlach argues that the 30 year treasury is no longer a legitimate flight-to-safety asset and suggests waiting for the yield to hit 6% before buying. His believes that yield will trigger another round of Q/E designed to bring the yield down. 

++++

CPI for May 2025  

CPI and Core CPI Month-to-Month: +.1%, seasonally adjusted

The annual numbers are not seasonally adjusted. 

Annual CPI: 2.4%, up from 2.3% through April, Consumer prices up 2.3 percent from April 2024 to April 2025-U.S. Bureau of Labor Statistics

Annual Core CPI: 2.8%, unchanged

Consumer Price Index Summary - 2025 M05 Results

The declines in energy commodity prices have recently contributed to lower inflation. West Texas Intermediate Crude oil was at $85 per barrel in early July 2023, hit a bottom near $58.5 on May 5, and is currently trading near $67.  Crude Oil Prices: West Texas Intermediate (WTI) - St. Louis Fed

The  Atlanta Fed's Sticky-Price CPI and Core Sticky-Price CPI were both up 3.2% for the 12 months ending in May.

++

China and the U.S. negotiators agreed to a framework in principle, subject to the approval of Trump and XI, to implement the previous discussion in Geneva about China lifting the export controls on rare minerals. China may be slow walking the lifting of export controls to give the U.S. a taste of what a total ban would look like. 

Trump-Xi call isn't enough to resolve critical mineral shortage Supplies for many U.S. firms will run out this summer. China has been slow to remove its export controls imposed after Trump initiated his trade war. Several European parts companies have already had to shut down production. Urgent action needed as China's export restrictions on rare earths disrupt European automotive supply chains  | CLEPA

The U.S. Court of Appeals for the Federal Circuit has continued its stay of the three judge panel decision that found Trump overstepped his authority in issuing retaliatory tariffs and the fentanyl related tariffs under the International Emergency Economic Powers Act ("IEEPA"),50 USC § 1701: Unusual and extraordinary threat; declaration of national emergency; exercise of Presidential authorities, Two Federal Courts Temporarily Strike Down President Trump’s IEEPA Tariffs | Morrison Foerster

{In the per curiam order issued by this Appellate Court en banc, ORDER.pdf, it is stated that the judges applied the traditional standards for granting a stay expressed in the Supreme Court's opinion in  Nken v. Holder, 556 U.S. 418 (2009). Those standards are: "(1) whether the stay applicant has made a strong showing that he is likely to succeed on the merits; (2) whether the applicant will be irreparably injured absent a stay; (3) whether issuance of the stay will substantially injure the other parties interested in the proceeding; and (4) where the public interest lies. . . . The first two factors of the traditional standard are the most critical."  No details of the the reasoning supporting the stay decision was given by the Court. The Court seemed to be persuaded that the balance of the equities supported granting the government's motion to stay, citing the recent 6 to 3 Supreme Court decision in Trump v. Wilcox (05/22/2025), The Supreme Court Gifts Trump Even More Power | The Nation} 

The Appellate Court consequently has allowed the government to continue collecting the "retaliatory" tariffs but stated that all of the Judges, sitting en banc, will make an expedited decision on the merits with oral argument scheduled for July 31st. The loser in this appellate court will appeal to the U.S. Supreme Court who will likely take the case while continuing the stay. That would mean the tariffs will continue at least until late 2025 or early 2026. 

If the final decision in this case is that Trump acted unlawfully, in whole or in part, the government will have to refund only the tariffs imposed under IEEPA that were finally determined to be unlawful. That is one factor in the balance of equities analysis, that is, the harm to the importers can be remedied if they are successful on the merits.  

The tariffs on steel, aluminum, cars and car parts were imposed under section 232 of the Trade Expansion Act of 1962, codified at 19 USC § 1862: Safeguarding national security, and consequently unaffected by this litigation. 

++

Corporate layoffs: Here are the companies making job cuts

Winnebago says job cuts are coming. Why Trump’s tariffs can be blamed. - MarketWatch (subscription publication)

Trump's tariffs enrich steel barons at high cost to US manufacturers and households | PIIE

How has Canada responded to Trump's tariff hike on steel and aluminum? | CBC News I understand why Canada has not yet responded to the 100% tariff increase to 50% while negotiations are still in progress. Responding now would make what is probably a difficult negotiation harder to resolve. 

However, Canada's current non-response to the 50% tariffs will be viewed by Trump as weakness, embolden him further to make what Canada will view as unreasonable demands and confirm his existing opinion that the U.S. "holds all of the cards".  

{The legal justification required by the law used by Trump to impose those tariffs is a finding that steel and aluminum exports from Canada threaten U.S. national security, a totally bogus claim that indicates that Trump will justify just about any action based on a claimed threat to  national security and will then argue, as his lawyers have already done, that courts are without power to question his decision, calling the decision a "political question" reserved exclusively to the President. What Trump's national emergencies could mean for American democracy : NPR The 6 Republican Justices are far more likely to accept that argument, no matter how absurd and factually unsupported given their views on expanding Presidential powers to be consistent with, or even greater than the powers that King George had in 1776. Republicans call that a "conservative" approach to constitutional law decisions} 

What a ‘revenge tax’ in Trump’s spending bill means for investors

China’s rare earth squeeze puts defense giants in the crosshairs; How rare earth minerals could give China the upper hand in U.S. trade talks  

Paramount to cut 3.5% of its workforce amid economic and media industry challenges - CBS News

U.S. budget deficit hit $316 billion in May Interest on the debt topped $92B in May. Debt financing costs are expected to exceed $1.2 Trillion for the F/Y ending 9/30/25. 

+++++

Trump says Musk will face 'serious consequences' if he funds Democratic candidates Only an authoritarian would make this kind of statement.   

Trump threatens Tesla CEO Musk companies' contracts Steve Bannon suggested the Musk needed to be deported and his SpaceX company seized by the government. Steve Bannon calls on Trump to deport Elon Musk and 'seize' SpaceX  

Former federal inmate pardoned by Trump tapped as Bureau of Prisons deputy director

What Pell Grant changes in Trump budget, House tax bill mean for students; Trump wants to slash the maximum Pell Grant to $5,710 per year from $7,375 and proposes to scale back the federal work study program. Those Pell Grants help students from low income families to pay tuition. The republican BBB would reduce grants to low income students by about $1,500 annually.  Pell grant cuts threaten state college access goals; House Proposes $1,500 Cut to Max Pell for Students Taking 12 Credits - National College Attainment Network   

Trump’s Ominous Military Flex in Los Angeles - The Atlantic (subscription publication) 

Trump vows to 'HIT' any protester who spits on police. He pardoned those who did far worse on Jan. 6 - ABC News; “Trump has called all patriots”: 210 Jan. 6th criminal defendants say Trump incited them - CREW | Citizens for Responsibility and Ethics in Washington

Trump warns that military parade protesters will face 'very heavy force'  

In the past, Trump considered using the military to seize voting machines in 2020. Trump directly involved in plans to seize voting machines -reports | Reuters The Defense Secretary in 2020 respected the rule of law and successfully pushed back.  There is no such restraint present in the current Trump administration. If Trump orders the military to intervene in the tabulating of the 2026 election results or some other kind of interference, claiming election fraud, no one should be surprised by that outcome. And, tens of millions will accept his claims of election fraud notwithstanding the absence of any evidence, admissible in a court, supporting the claims, something that is not subject to debate based on history.  

Military personnel showed their allegiance to Trump by cheering and applauding his deeply authoritarian, inflammatory and highly partisan speech at Fort Bragg while in their uniforms. Bragg Soldiers Who Cheered Trump's Political Attacks While in Uniform-Military.com; Fact-check: Trump’s speech at Fort Bragg contained lies and conspiracy theories about LA -The Guardian; Trump’s Fort Bragg speech was a serious step toward ending democracy; Fact check: Trump makes multiple false claims to the troops at Fort Bragg | CNN Politics

Hitler Used a Bogus Crisis of ‘Public Order’ to Make Himself Dictator - The Atlantic (subscription publication)

Trump suggests using military against ‘enemy from within’ on Election Day | CNN Politics; Trump Wants to Use the Military Against His Domestic Enemies. Congress Must Act. | Brennan Center for Justice 

Trump supports Tom Homan arresting Governor Newsom (D) over California protests Trump was asked whether the "border czar" Tom Holman should arrest Newson. Trump replied: " I would do it if I were Tom. I thinks it's great" to arrest Newsom.

John Kelly, retired 4 Star Marine General and Former Trump Chief of Staff  says Donald Trump fits ‘fascist’ definition and prefers ‘dictator approach’ 

Trump's top general Mark Milley calls former president "fascist" and "dangerous" threat (10/11/24)

Trump diverted 20,000 anti-drone missiles from Ukraine  

Zelenskyy: 'Free, democratic world' is 'waiting' for Trump to bring peace in Ukraine - ABC News It has been more than a day since Trump started his second term. Fact check: It wasn’t ‘in jest.’ Here are 53 times Trump said he’d end Ukraine war within 24 hours or before taking office 

Trump: "Sometimes you see two young children fighting like crazy They hate each other, and they’re fighting in a park, and you try and pull them apart. They don’t want to be pulled. Sometimes you’re better off letting them fight for a while and then pulling them apart." Trump compares Ukraine-Russia war to children’s brawl: ‘Sometimes you’re better off letting them fight’  

Scott Jennings Calls CA's Booming Economy a ‘Failed State' Jennings must try very hard to be as ridiculous as possible.  

RFK Jr. removes all 17 members of CDC panel advising U.S. on vaccines; RFK Jr. firing of CDC vaccine advisors effects on public health 

RFK Jr. names  anti-vaccine activists and skeptics to CDC vaccine committee after firings  

HHS budget proposal eliminates CDC's chronic disease, global health centers in favor of new "MAHA" agency - CBS News

Trump's approval rating in polls is hovering near 46%-48%. 

If the election was held again today, Trump would beat Harris with over 77 million voting for him, since they approve what he has done so far. 

I suspect that Trump is near a peak approval rating now but may only fall to 40%-45% with the return of annual inflation exceeding 4% and a recession, thereby losing some of the marginal Trump voters based on a worsening economy. 

No clearly dictatorial acts committed by Trump, no matter the number, which will be high, or their significance to America's democracy, will cause a meaningful decline in Trump's approval rating IMO among those who now support him.   

+++

1. Eliminated TAPRH:CA - Sold 100 at C$24.58 (C$1 IB Commission): 

Quote: TA.PRH 

Proceeds: C$2,457 after C$1 commission

Issuer: TransAlta Corporation (TA.TO)

I have eliminated my position in the common stock. Item # 1 Eliminated TA:CA - Sold 100 at C$14.105 (11/21/24 Post)(profit snapshot = C$330.5). I have also sold my shares that are listed on the NYSE. Item # 4.C. Eliminated TAC - Sold 50 at US$10.33 (10/3/24 Post)(profit snapshot = US$161.86).  

Profit Snapshot: +C$803

Last Discussed: Item # 1 Bought 50 TAPRH at C$16.85 and 50 at C$16.19 (7/17/2019 Post)

Resets Every 5 Years at a 3.65% spread to the 5 year Canadian government bond yield. 

Current Coupon: 6.894% paid on a C$25 par value.  

Dividends: Paid quarterly and cumulative

Optional Issuer Call: Only on reset dates

Next Reset: September 2027. I do have a concern now, which may change based on subsequent developments, that the coupon will reset then at a lower rate.  If that appears likely to occur, then at some point the current price may be near the highest price.   

Current Dividend Information: 

Last Ex Dividend:  5/30/25 (owned as of)

I will consider buying a Transalta preferred and/or the common stock at lower prices. I do not currently have any position in Transalta securities. 

Total Realized Gain in All Canadian Reset Equity Preferred Stocks: C$22,930.8, with snapshots in Advantages and Disadvantages of Equity Preferred Floating Rate Securities My first round trip was in 2016. 

2. Small Ball Stock Purchases: 

All stock purchases were made in my Schwab account. 

A. Started DIN - Bought 5 at $23.85; 5 at $24.23: 

Quote: Dine Brands Global Inc.  (DIN) 

Cost: $240.6

Dine through its subsidiaries and franchisees under the Applebee's, IHOP and Fuzzy Taco Shop brands, consisting in total of over 3,500 restaurants in the U.S. and several foreign countries. Most of the restaurants are operated by franchisees or under area licenses. 

Revenue Breakdown by Brand: 

During the 2025 first quarter, DIN "operated 47 Applebee's restaurants across Georgia, Texas, Arkansas, Illinois, Kentucky, Tennessee, Mississippi and Missouri acquired in November 2024 and 10 IHOP restaurants in Ohio and Kentucky acquired in March 2025." 10-Q at page 3 None were operated in the 2024 first quarter.  No decision had been made on whether DIN would continue to operate those restaurants. 

I have never owned this stock before these purchases. I was aware of it based on its much higher than average dividend yield but declined to own shares based on both its business as a franchisor of Applebee's and IHOP restaurants and what was and remains an obvious long term secular decline in the stock price with no bottom yet in sight. 

While it would be understandable that sales and profit suffered in 2020-2022 due to the pandemic, the long term secular bear market did not start to cause serious damage until February 2023 when the price was near $83. I can not blame the pandemic for the slide from $83 to the current price in June 2025.  

The company  recently raised $600M in a 6.72% securitized senior note. Dine Brands Global, Inc. Prices $600 Million Securitized Financing Facility (6/5/25) A default under that loan agreement would likely result in a BK filing IMO. I do not have any reason to believe that is likely based on current current earnings. A dividend slash would be one indicia of a worsening financial condition. 

DIN SEC Filings 

10-Q for the Q/E 3/31/25 Summary of investments starts at page 8.

Chart: Long term bear market. The chart does indicate a flatlining in the stock price in a narrow $20 to$24 channel, so all hope is not yet lost. The five year top was $100.7 back in 5/10/2021 and the stock was selling near $83 in February 2023. 

DIN Analyst Estimates | MarketWatch As of 6/5/25, the date of purchase, the average E.P.S. estimate for 2025 was at $4.89 in 2025, at $5.2 in 2026 and at $6.4 in 2027. Those are most likely non-GAAP estimates. 

Dividend: Quarterly at $.51 per share, last raised from $.46 effective for the 2022 second quarter payment. The regular quarterly dividend was at $.76 in the 2020 first quarter and was eliminated thereafter due to the pandemic until resumed at $.4 in the 2021 4th quarter. I do not anticipate a recovery back to $.76 in my lifetime. 

I am not expecting a dividend increase at all and would be content with the current quarterly rate for as long as I own the stock.  

DIN Stock Dividend History & Date | Seeking Alpha

Average cost per share:  $24.04 (10 shares)

Yield at AC: 8.486%

Next Ex Dividend: 6/20/24

Last Earnings Report (Q/E 3/1/25): 

SEC Filed Earnings Press Release 

Comparisons are to the 2024 first quarter.

Revenue: $214.8M, up from $206.2M  

GAAP E.P.S. = $.53, down from $1.13

Non-GAAP E.P.S. = $1.03, down from $1.33

Non-GAAP Consensus estimate at $1.23 per Schwab

Reconciliation GAAP to Non-GAAP: 

I would note that these E.P.S. numbers are consistent with a stock being unable to make a sustained upward price move and is continuing to be at best mired in the mud since investors are assuming that this negative trend will persist until proven otherwise.   

B. Added 5 PFLT at $10.16: 

Quote: PennantPark Floating Rate Capital Ltd. (PFLT) - A BDC

Cost: $50.8

SEC Filed Annual Report for the F/Y ending 9/30/24 (Risk factor summary starts at page 18 and ends at page 38)

Last Discussed: Item # 1.J. Pared PFLT Again - Sold Highest Cost 5 Shares at $11.02 (12/5/24 Post) 

Last Buy Discussions: Item # 1.M. Added to PFLT - Bought 3 at $9.71 (11/4/23 Post); Item # 4.F. Added to PFLT - Bought 5 at $10.51 (6/24/23 Post)

Net Asset value per share history: 

3/31/25:    $11.07

12/31/24:  $11.34

9/30/24:   $11.31

9/30/23:  $11.13

6/30/23: $10.96

12/31/22:  $11.30

9/30/22:   $11.62

12/31/21:  $12.70

3/31/21:    $12.71    Press Release 2021 1st Q Earnings 
3/31/20:   $12.20   10-Q at page 5 
12/31/19:  $12.95
9/30/19:   $12.97
6/30/19:   $13.07 
3/21/19:    $13.24
12/31/18    $13.66
9/30/18    $13.82
6/30/18:   $13.82
9/30/17:   $14.10
9/30/16:   $14.06
9/30/15:   $13.95
9/30/14:   $14.40
9/30/13:   $14.10
9/30/12:   $13.98

Dividend: Monthly at $.1025 per share ($1.23 annually), last raised from $.1 effective for the June 2023 payment. 

I quit reinvesting the dividend effective for the August 2023 payment. 

PFLT Stock Dividend History & Date | Seeking Alpha

According to several reports, the recently passed House bill extends the Section 199A deduction to BDC dividends sourced from net interest income. The One Big Beautiful Bill: Initial Analysis of Key Provisions for Investment Funds and Sponsors; The One Big Beautiful Bill’s impact on investments in BDCs It remains to be seen whether this provision will survive in the Senate. When and if passed by Congress, applying the 199A deduction to BDC dividends sourced from net interest income will make them slightly more attractive on an after tax basis.  The deduction is currently 20% and the House passed bill increases that to 23%.   

Prior to 2025, the Section 199A deduction did not apply to BDC dividends that were taxable as non-qualified dividends due to their pass through status. 

New Average cost per share: $8.91  (90+ shares)

Price as of 6/6/25 Close 

Yield at $8.91: 13.8%

Next Ex Dividend: 6/16/25

Last Earnings Report (Q/E 3/31/25): 

SEC Filed Earnings Press Release 

Net Investment Income per share: $.28

Core NII per share: $.31

"Core NII excluded: i) $0.4m of credit facility amendment costs and ii) $0.1m of incentive fee expense offset."

As of 3/31/25, the PFLT portfolio"totaled $2,344.1 million, and consisted of $2,100.2 million of first lien secured debt", approximately 100% was variable rate debt, the weighted average yield on debt investments was at 10.5%, and 4 portfolio companies were on non-accrual representing 2.2% and 1.2% of the overall portfolio on a cost and fair value basis, respectively.

For the Q/E 3/31/24, the weighted average yield on debt investments was reported at 11.8%. A BDC with variable rate loans, meaning their coupons are based on spreads to short term rates which will fluctuate up or down, will experience a decline in NII based when the FED cuts short term rates. 

The relationship between short term rates and NII is shown in this chart: 

10-Q at page 68

Other Sell Discussions: Item # 2.H. Pared PFLT in Schwab Account - Sold 20 at $12.29 (1/12/24 Post)(profit snapshot = $12.13); Item # 2.D. Eliminated PFLT in Fidelity Account (Duplicate Position)-Sold 15 at $10.93 (3/11/23 Post)(profit snapshot = $74.78); Item # 7.E. Sold Highest Cost 20 PFLT Shares Purchased with Dividends at $14.07 - Schwab Taxable Account (4/28/22 Post)(profit snapshot = $46.13); Item # 3. Sold 102 PFLT in Schwab Taxable Account at $13.26 -Highest Cost Lots (7/30/21 Post)(profit snapshot = $30.92); Item # 2.A. Eliminated PFLT in Fidelity Account-Sold 81+ at $12.01 (12/14/19 Post)($29.66) 

Goal: As with all BDCs, the goal is to realize any total return in excess of the dividend payments.  The goal takes into account the risky loans made by BDCs, their leverage, the stock price meltdowns that occur periodically in response to a recession or too many bad loan decisions, a recognition that all of the return will likely come from the the juiced dividend payments, and the generally less than stellar net asset value per share histories. 

The long term total return history of PFLT highlights that trading is necessary to achieve that goal. 

10 year average annual total return through 6/6/25 (dividends reinvested) = 7.09%

Sourced: DRIP Returns Calculator | Dividend Channel

BDC stocks are disfavored by me notwithstanding their high dividend yields but my disfavor runs from strong (PSEC, TPVG, MRCC) to very weak (ARCC). 

Many have long term and persistent declines in net asset value per share and one or more dividend cuts. 

They will crater in price when the economy enters into a recession as more risky loans go on nonaccrual status and some portfolio companies file for bankruptcy. Even when the economy is still in an expansion mode, many BDCs have reported nonaccrual loans at 8% to 12% of the total amortized cost of all loans. Many remove those loans by selling them at a loss and realized losses have already spiked for many of them. 

It is not usual to see a first lien loan fall to a zero value or close to it when the borrower fails. 

Net investment income will decline on floating rate loans when the FED is in a rate cutting cycle which has been the case starting with the 100 basis cut in the FF rate last September. 

The rise in the FF rate starting in March 2022 benefited BDCs since the floating rate loans reset at higher coupons, generating more net investment income for them.    

C. Added 5 REYN at $21.45: 

Quote: Reynolds Consumer Products Inc. (REYN) 

Cost: $107.25 

REYN Analyst Estimates | MarketWatch

10-Q for the Q/E 3/31/25

REYN SEC Filings

Brands | Reynolds Consumer Products

Chart: Ongoing Bear Market Pattern of unknowable duration but with current stabilization in the $22 to $25 range. 

New Average cost per share: $24.47 (30+ shares)

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

REYN Stock Dividend History & Date | Seeking Alpha

I changed my dividend option to reinvestment effective for the 2025 first quarter payment. 

Yield at New AC: 3.76%

Last Ex Dividend: 5/16/25

Last Earnings Report (Q/E 3/31/25 ): I discussed this report in a recent post and have nothing further to add here,  Item # 3.B. Added to REYN - Bought 5 at $22 (6/5/25 Post); SEC Filed Press Release

Maximum Position: 50 shares with each subsequent purchase required to be at the lowest price in chain. 

Sell Discussions: Item # 2.A. Eliminated REYN - Sold 40+ at $29.64 (3/1/2024 Post)(profit snapshot = $60.56); Item # 4.F. Eliminated Duplicate REYN in Schwab Taxable Account - Sold 20+ at $32.55 (12/6/22 Post)(profit snapshot = $95.96)

REYN Realized Gains to Date: $156.52

D. Restarted PFS - Bought 10 at $16.52: 

Quote: Provident Financial Services Inc. (PFS) 

Cost: $165.2

PFS SEC Filings 

PFS is a bank holding company whose operating subsidiary Provident Bank provides banking services throughout New Jersey, Bucks, Lehigh and Northampton counties in Pennsylvania, as well as Orange, Queens and Nassau Counties in New York. As of 12/31/24, Provident Bank had 140 full service branches. PFS SEC Filed 2024 Annual Report at page 52 

In May 2024, PFS acquired Lakeland Bancorp (LBAI) in an all stock merger. Provident Financial Services, Inc. Completes Merger with Lakeland Bancorp, Inc. As of 2/15/24, the operating subsidiary of Lakeland Bancorp had 68 branch offices located throughout central and northern New Jersey and in Highland Mills, N.Y. Lakeland 2023 Annual Report at page 1  

PFS Analyst Estimates | MarketWatch As of 6/5/25, the average E.P.S. estimate for 2025 was at $2.07 and at $2.32 in 2026. 

My last trade was to sell 50 shares in 2011. Item # 4. Sold 50 PFS at $14.88 (3/4/2011 Post)(profit snapshot = $144.08) 

Last Buy Discussion: Item # 6 Added 50 PFS at $11.68  (8/12/2010 Post) 

Long Term Chart: 

Monthly Prices 

I would describe this chart as fairly typical for small regional bank holding company stocks. 

There was a strong rally after the 2008 Near Depression that topped out in early 2017 and then went into a narrow channel trading range until the pandemic. 

The price collapsed in 2020 down to $12, rallied back up to around $27 in 2018 and then declined again back down to the pandemic low in early 2023 in response to the FDIC seizures of Silicon Valley Bank and two other regional banks after deposit runs. 

As with other banks, PFS did a poor job managing interest rate risk in its owned securities by holding onto low yielding mortgage backed securities when they could have been sold at small profits or losses in 2021. NIM was pressured down by increases in bank deposit rates due to rapid FED rate increases starting in 2022. The owned security portfolio could have offset much of those increases with adequate risk management in 2021. 

Dividend: Quarterly at $.24 per share ($.96 annually), last raised from $.23 effective for the 2021 4th quarter payment.

Yield at $16.52: 5.81%

Last Ex Dividend: 5/16/25

Last Earnings Report (Q/E 3/31/25): SEC Filed Press Release 

Comparisons are to the 2024 first quarter which did not include the operations of Lakeland. 

Net Income: $64M 

E.P.S. = $.49, up from $.43

"Net income for the three months ended March 31, 2025 was negatively impacted by a $2.7 million write-down on a foreclosed property, partially offset by a $624,000 profit on fixed asset sales related to the consolidation of three branches. While there were no transaction costs related to our merger with Lakeland Bancorp, Inc. (“Lakeland”) for the 2025 period, these costs totaled $20.2 million for the three months ended December 31, 2024 and $2.2 million for the three months ended March 31, 2024, respectively."

NIM: 3.34% adjusted to 2.94% to remove the temporary purchase accounting accretion to NIM resulting from the Lakeland acquisition, up from 2.87%  

How High Interest Rates Changed Bank M&A | Bank Director I ignore the purchase accounting adjustment that temporarily juices NIM and focus only on the operating NIM that excludes that accounting adjustment. 

Efficiency Ratio: 54.43%

NPL Ratio: .54%, up from .44%

NPA Ratio: .45%, up from .42%

Coverage Ratio (allowance for loan losses to non-performing loans) 185.78%, down from 223.63% 

Charge off ratio:  .04%, unchanged

Annualized adjusted ROTE: 16.15%

Tangible Book Value per share: $14.15

Owned Securities: As with other banks, the unrealized loss is concentrated in mortgage backed securities: 

Available for Sale

Held to Maturity: 

10-Q for the Q/E 3/31/25 at pages 12-13 

Other Sell Discussion: Item # 5. Sold 50 PFS at $14.4 (11/17/2010 Post)(profit snapshot = $67.08) 

E. Restarted VLY - Bought 10 at $8.71: 

Recent History this Account: 

Quote: Valley National Bancorp (VLY) 

Cost: $87.05 

VLY SEC Filings

Investment Category: Regional Bank Basket Strategy

Last Elimination: Item # 2.E. Eliminated VLY - Sold 20 at $9.09 (10/31/24 Post)(profit snapshot = $46.91) 

Last Buy Discussion: Item # 1.F. Restarted VLY - Bought 20 at $6.74 (6/7/24 Post)

VLY Analyst Estimates | MarketWatch As of 6/5/25, the average E.P.S. estimate for 2025 was at $.94, at $1.14 in 2026 and at $1.22 in 2027. 

VLY SEC Filings 

Dividend: Quarterly at $.11 per share, slashed from $.1625 effective for the 2013 third quarter. 

Valley National Bancorp (VLY) Dividend History | Seeking Alpha

Dividend History: Highly unfavorable IMO 

Yield at $8.71: 5.05%

Last Ex Dividend: 6/13/25

Last Earnings Report (Q/E 3/31/25): SEC Filed Earnings Press Release 

Comparisons are to the 2024 first quarter. 

E.P.S. = $.18, unchanged

Non-GAAP E.P.S. $.18, down from $.19 Lack of E.P.S. growth is a negative. 

NIM FTE = 2.96% (below acceptable), up from 2.78% (at least going in the right direction)

Efficiency Ratio: 55.87%, down from 59.1% (down is good)

NPL Ratio: .71%, up from .58% (Given the current economic conditions, I view the .71% number as too high and the trend year-over-year is unfavorable as well).  

Charge off ratio: .34%, up from .19% (While I view .34% as okay, the trend is unfavorable)

Coverage Ratio (allowance for loan losses to nonperforming loans): 166.89%, up from 163.33%

When starting a position in a bank stock, I prefer to see an allowance that had already been created greater than 100%. So the coverage ratio for a new position is viewed by me as favorable. 

ROTE: 7.76% (pathetic), down from 8.46% (less pathetic)

Tangible Book Value per share: $9.21, up from $8.84

Starting a new position at less that the TBV per share is viewed by me as favorable.  

Investment Portfolio: Pathetic interest rate risk management IMO which was normal for banks in the 2020-2022 time period. 

My grade: D+

Available for Sale:

Held to Maturity:

Total Unrealized Net Loss as of 3/31/25: $596.733M

(Unrealized loss of $615.414M netted with unrealized gain of $18.681M)

Annual CPI was reported at +8.5% through March 2022 when the Fed finally raised the FF rate by .25% to .25%-.5%. Consumer prices up 8.5 percent for year ended March 2022-U.S. Bureau of Labor Statistics; Federal Reserve issues FOMC statement 3/16/22 Given that history, there would be no justification for continuing to own low yielding mortgage backed securities in any meaningful amount in March 2022.   

While the Fed ended new buying of treasury and mortgage backed securities then, it decided to reinvest some proceeds from maturing securities into new purchases. Plans for Reducing the Size of the Federal Reserve's Balance Sheet (5/4/22) Yet banks kept their low yielding mortgage backed securities, mostly at or near 2%, whose durations increase when interest rates rise. 

The FED later slowed the runoff. The Evolution of the Federal Reserve’s Monetary Policy Implementation Framework - FEDERAL RESERVE BANK of NEW YORK

VLY 10-Q for the Q/E at pages 17 & 20  

Other Sell Discussions: Item # 2.M. Eliminated VLY in Fidelity Account - Sold 15+ at $11.76 and Item # 2.N. Eliminated VLY in Vanguard Account - Sold 15 at $11.75 (2/5/23 Post)(profit snapshots = $134.03);Item # 1.A. Eliminated VLY-Sold 102+ at $10.51 (9/11/2019 Post)(profit snapshot = $33.12); Item # 2.A. Eliminated VLY Sold 51+ VLY at $12.76 (7/25/18 Post)(profit snapshot = $98.62) Some sales were not discussed but snapshots are included in the main Regional Bank Basket Strategy post linked above.  

Largest Gain: $197.85 in 2016

VLY Realized Gains to Date: $713.12

VLY Junior Bond: I own 2 VLY 4.55% junior bonds that mature on 6/30/25 that were bought at 92.752 on 6/5/23. Item # 3.G. (6/10/23 Post)(YTM at TC was then at 8.447%). Junior and senior banks issued by small and mid-sized bank holding companies had tumbled in price due to the FDIC seizure of three operating banks, starting with Silicon Valley, after deposit runs. Preferred stocks and junior bonds issued by a bank holding company will become worthless, or close to it, when the FDIC seizes the operating bank. I believed that VLY would survive to pay off this bond, which will soon happen.  I also discussed in that post buying a Fulton Financial junior bond that was paid off on 11/15/24.  

F. Started ARE - Bought 1 at $69.8 - Placeholder: 

Quote: Alexandria Real Estate Equities Inc. (ARE) - Life Science REIT

ARC SEC Filings

Properties: 

10-Q at page 22

10-Q Debt is heavy and is discussed at pages 36-37.

Top 20 Tenants: 

Page 54,10-Q 

Square feet (excluding properties held for sale): 39,257,034 operating properties, page  56, 10-Q. 

ARE is a component of the S&P 500. 

A Placeholder position simply reminds me that I may want to add more shares at a lower price.  

I updated my research on this company when I recently bought a senior unsecured bond.  Item # 5.C.  Bought 2 Alexandra REIT 4.5% SU Maturing on 7/20/29 at a Total Cost of 98.55 (6/5/25 Post) 

I decided to average down only after looking at the long term chart that signaled investor concern. On the date of purchase, the 52 week high was at $130.14 with the 52 week low at $67.37. The 3 year closing high was at $170.82 on 2/2/23.

Dividend: Quarterly at $1.32 per share ($5.24 annually)

ARE Stock Dividend History & Date | Seeking Alpha

Yield at $69.8: 7.507%

Next Ex Dividend: 6/30/25

Last Earnings Report (Q/E 3/31/25): 

SEC Filed Earnings Press Release and Supplemental 

Revenues: $758.2M

GAAP E.P.S. ($.07)

FFO per share: $2.3

Reconciliation: 

Occupancy North America Properties: 91.7%

Weighted average remaining lease term: 7.6 years 

Guidance for 2025: AFFO per share $9.16-$9.36

3. Small Ball Sells: 

A. Pared MFC Again - Sold 5 at $32.14: 

Quote: Manulife Financial Corp.  (MFC)

Proceeds: $160.73

CAD Priced Shares: Manulife Financial Corp (Canada: Toronto)

Canadian Dollar to US Dollar Exchange Rate Chart | Xe

Profit Snapshot: +$103.69

Average cost per share: $11.41

Price as of 6/6/25 Close -Unrealized Gain at $1,367.15

The AC per share remains unchanged since I am not selling shares out of a 100 share lot purchased on 4/24/20. Item # 2.D. Bought 100 MFC at $11.41 (5/9/2020 Post)I am not reinvesting the dividend which would raise the AC. 

Dividend: Quarterly at C$.44 per share

Manulife increases common shareholders’ dividend by 10.0% (2/19/25)

Last 4 Dividends in USDs: US$1.205

MFC  Stock Dividend History & Date | Seeking Alpha

When paid into a U.S. citizens taxable account, Canada will withhold 15%. 

Yield at $11.41 using US$1.205 annual (before taxes): 10.56%

Last Earnings Report (Q/E 3/31/25): I discussed the last earnings report in a recent post and have nothing further to add here: Item # 3.B. Pared MFC Again - Sold 5 at $32.02 (5/23/25 Post); SEC Filed Earnings Press Release

Some Other Sell Discussions: Item # 1.A. Pared MRC - Sold 5 at $31.59 (4/5/25 Post)(profit snapshot = $100.91); Item # 2.A. Sold 5 MFC at $32.79 (11/27/24 Post)(profit snapshot = $106.95); Item # 2.A. Pared MFC - Sold 5 at $32.79 (11/27/24 Post)(profit snapshot = $106.95); Item # 4.B. Pared MFC Again - Sold 5 at $32.38 (11/14/24 Post)(profit snapshot = $104.39); Item # 3.B. Pared MFC Again - Sold  5 at $30.36 (10/16/24 Post)(profit snapshot = $94.9); Item # 2.B. Pared MFC - Sold 5 at $29.29 (10/10/24 Post)(profit snapshot = $91.44); Item # 1.G. Eliminated Duplicate Position in MFC - Sold 14 at $20.1-Fidelity Account (3/6/23 Post)(profit snapshot = $143.61); Item # 1.A. Sold 32 MFC at $20.63 (2/2/20 Post)(profit snapshot = $104.79); Item # 2.A. Sold 20 MFC at $18.78 (11/2/19 Post)(profit snapshot = $7.69

Largest Gain: $481.06

100 Shares IB Account 2016

That trade was only mentioned in a comment: South Gent's Comment Blog # 7 - Seeking Alpha

Lowest prices paid to date:  Item # 2.C. Bought in Fidelity Account 10 MFC at $10.15; 2 at $9.3; 2 at $8.9  (5/9/20 Post) Those lots have been sold.

Realized MFC Gain In USDs: $1,439.64

Owned Reset Equity Preferred: MFC-PM.TO, reset on 11/20/24 for five years at a  2.36% spread to the five year Canadian bond yield resulting in a new coupon of 5.542%, Manulife Financial Corporation announces Dividend Rates on Non-cumulative Rate Reset Class 1 Shares Series 17 and Non-cumulative Floating Rate Class 1 Shares Series 18; Item # 2.A. Bought 100 MFCPRM:CA at C$15.14 (7/25/20 Post). At a C$15.14 total cost, the new yield is about 9.15%. 

Owned SU Bond: 2 SU 4.15% Maturing on 3/4/26, Bond Page | FINRA.org 

B.  Eliminated OFS - Sold 36 at $8.5: 

Quote: OFS Capital Corp. (OFS - Externally Managed BDC

Proceeds: $306

2/19/25 Close: $8.46

I eliminated my position based non-accruing loans being too high as a percentage of total loans based on amortized cost, a significant unrealized loss on structured investments, a dividend payout in excess of the net investment income per share, and the highly erratic valuation of an equity investment in the private company Pfanstiehl that accounted for 56.6% of net assets as of 3/31/25, page 14 10-Q at page 14. The 400 shares of Pfanstiehl had a fair value mark of $90.762M with a $217,000 cost.    

OFS says that it is looking for ways to monetize that equity position. None of the shares have been sold yet.      

Profit Snapshot: $176.01

Last Discussed: Item # 4.E. Pared OFS - Sold 4 at $8.05 (11/21/24 Post)(profit snapshot = $15.93) 

Net Asset Value per share history: 

OFS owns 400 shares in the private company Pfanstiehl. Looking at the 2019 OFS Annual Report, I noted that the 400 common shares was valued at $4.755M as of 12/31/2019. OFS then had outstanding a 10.5% subordinated loan of $3.768M outstanding. That loan matured in 2021 leaving OFS with just the equity position. (p. 96, 10-K) Frequently equity positions will be acquired by a BDC as part of a loan transaction.

In the 2024 first quarter, OFS marked down its equity investment in this private company to $63.077M. 10-Q at page 15 The percentage of net assets was then at 42.5%.

OFS marked this investment up to $70.831M as of 6/30/24, representing 45.9% of net assets. This markup was $7.754M or $.579 per share and exceeded the $.43 increase in net asset value per share claimed compared to the second quarter. 

OFS valued this equity investment at $73.66M, or 48.7% of net assets, as of 9/30/24. 10-Q for the Q/E 9/30/24 The $2.829M increase in valuation compared to the prior quarter added $.21 to the net asset value per share. 

The net asset value is highly dependent on the valuation marks given to this equity investment. What is the value of that common stock? I have no idea. 

3/31/25:    $11.97

12/31/24:  $12.85  

9/30/24:   $11.29

6/30/24:   $11.51

3/31/24:    $11.08

12/31/23:  $12.09

9/30/23:   $12.74

6/30/23:   $12.94

12/31/22:  $13.47

6/30/22:   $14.57 10/Q for the Q/E 6/30/22 at page 3 

03/31/21:  $11.96 10-Q at page 3 

12/21/20:  $11.85 10-K at page 69 

6/30/20:   $10.10
3/31/20:    $  9.71
12/31/19:   $12.46
9/30/19:    $12.74  
6/30/19:    $12.95   Page 2 10-Q
3/31/19      $13.04   10-Q
12/31/18    $13.10
6/30/18     $13.70
03/31/18   $13.67
12/31/17    $14.12
12/31/16    $14.82
12/31/15    $14.76
12/31/14    $14.24
12/31/13    $14.54

IPO Offering Price at $15 (November 2012) with proceeds after the underwriters' discount at $13.05 Final Prospectus Supplement

Last Earnings Report (Q/E 3/31/25): 

SEC Filed Press Release 

NII per share: $.26, down from $.42 in the 2024 first quarter 

Nonaccrual loans: $39.119M, p.30 10-Q, assigned by OFS at fair value of $16.587M:

Nonaccrual loans include the following: 

SSJA Bariatric Management LLC 

Amortized Cost at $13.462M, valued at $9.328M

JP Intermediate B, LLC:

Amortized Cost $4.491M valued at $2.102M 

Envocore Holding,LLC - Second lien debt (first lien debt listed as performing): 

Second Lien Amortized Cost = $6.584M, valued at $2.018M

First and Second Lien Loans: Amortized cost at $250.975M, valued at $215.862M

Investment Classifications, page 28,10-Q

Performing Structured Finance Investments: Amortized  cost at $91.401M, valued at $79.534M, unrealized loss as of 3/31/25 at $11.867M, pages 14 & 28,  10-Q 

Realized loss: $2.587M

Weighted average yield performing loans: 13.8%

Weighted average yield all loans: 11.9%

Some Sell Discussions:  Item # 2.A. Sold 9 OFS at $8.14 (10/31/24 Post)(profit snapshot = $35.16)(I discussed my negative reaction to the second quarter earnings report in that post. SEC Filed Press Release);  Item # 2.A. Eliminated Duplicate Position in OFS - Sold 59+ at $9.56 and Item #2.B. Pared OFS in Fidelity Account - Sold 9+ at $9.55 (5/10/24 Post)(profit snapshots = $335.97)(As noted there, I decided to eliminate this duplicate position based on an acceleration of non-performing loans and the erratic valuation marks for an equity position in Pfanstiehl); Item # 1.D. Pared Duplicate Position in OFS - Sold 22 at $10.04(4/5/24 Post)(profit snapshot = $13.7); Item # 3.G. Pared OFS in Schwab Account - Sold 10 at $12.02 (1/26/24 Post)(profit snapshot = $21.59); Item # 3.D. Pared OFS in my Fidelity Account - Sold 8+ at $11.81  (1/20/24 Post)(profit snapshot - $60.72); Item # 1.B. Pared OFS in Schwab Account - Sold  20 at $11.51 (12/30/23 Post)(profit snapshot = $17.65); Item # 6.C. Pared OFS in Schwab Account - Sold 20 at $10.86 (9/30/23 Post)(profit snapshot = $28.94); Item # 3.A. Eliminated OFS in Vanguard Account - Sold 20 at $10.2 and Item # 3.B.  Pared OFS in my Fidelity Account-Sold 10 at $10.15 (8/19/23 Post)(profit snapshots = $182.5)(Item #3.B. also contains snapshots of prior realized gains); Item # 3.D. Pared OFS in Fidelity Account - Sold 13.82 Shares at $11.32 (8/16/22 Post); Item # 4.B. Pared OFS in Fidelity Account - Sold 15.427 at $12.49 (6/15/22 Post)(profit snapshot = $60.07; contains snapshots of realized gains prior to 2022); Item # 4.D. Pared OFS in Fidelity Account - Sold 29+ at $13.06 (4/21/22 Post)(profit snapshot = $69.88); Item # 1.H. Pared OFS in Fidelity Account Sold 35 at $10.07- Highest Cost Lots That Could be Sold Profitably (7/22/21 Post)(profit snapshot = $12.44);; Item # 2.M. Pared OFS in Vanguard Taxable-Sold 20 at $7.2 (12/25/20 Post)(profit snapshot = $56.8); Item # 3.B. Sold 10 OFS at $12.04 (11/30/19 Post)(profit snapshot = $7.04); Item # 4.B. Sold 60 shares at $12 (11/13/19 Post)(profit snapshot = $13.11); Item # 3.A. Sold Highest Cost OFS Lots in Schwab Account - 50 shares at $12.27 and 50 at $12.47 (5/5/19 Post)(profit snapshots = $69.55)   

OFS Realized Gains to Date: $1,343.28

I still own 18 shares in RI accounts.  

C. Pared Duplicate Position in BNS - Sold 5 at $54.07 (Fidelity Account): 

NYSE Quote: Bank of Nova Scotia (BNS) 

Proceeds: $270.33

Toronto Exchange - Priced in CADs: Bank of Nova Scotia 

I own the shares priced in USDs. 

BNS Analyst Estimates | MarketWatch

Investment Category: Bond Substitute. This category describes the objective, rather than the safety of the dividend. The objective is to harvest the dividends and realize a 2+% annual gain on the shares.

Profit Snapshot: $9.61

New Average cost per share this account: $45 (10 shares)

Snapshot Intraday on 6/9/25 after pare

The AC per share was reduced from $47.38.  

Dividends: Quarterly at C$1.1

Scotiabank Increases Dividend on Outstanding Shares (5/27/25) 

Last 4 Dividends in USDs through 7/25 payment: US$3.0473

BNS Stock Dividend History & Date | Seeking Alpha

Yield using US$3.05 annual per share and $45 TC:  6.778%

Next Ex Dividend: 7/2/25 at US$.782 per share

Last Earnings Report (Q/E 4/30/25): SEC Filed Earnings Press Release This is for the second fiscal quarter.

All amounts are in CADs. Comparisons are to the 2024 second fiscal quarter. 

Net Income: $2.032B, down from $2.092B

E.P.S. $1.48, down from $1.57

Adjusted E.P.S. $1.52, down from $1.58

"The provision for credit losses was $1,398 million, compared to $1,007 million, an increase of $391 million. The provision for credit losses ratio increased by 21 basis points to 75 basis points."

D. Pared Duplicate Position in SBRA - Sold 6 at $17.73 (Fidelity Account): 

Quote: Sabra Healthcare REIT Inc. - Primarily a nursing home/senior living REIT

Proceeds: $106.41

SBRA SEC Filings

SEC Filed 2024 Annual Report

Website: Sabra Health Care REIT

Management: Internal 

Last Discussed: Item # 1.H. Pared SBRA in Schwab Account - Sold 10 at $17.1 (3/18/25 Post)(profit snapshot = $28.04) I discussed the 2024 4th quarter earnings report in that post. SEC Filed Press Release and SEC Filed Supplemental

Last Buy Discussions: Item # 1.L. Added to SBRA - Bought 1 at $11.28 (5/13/23 Post); Item # 4.I. Added to SBRA - Bought 1 at $12.1; 2 at $11.67 (5/5/22 Post)

Profit Snapshot: $35.42  (6/9/25 sale only) 

New Average cost per share this account: $9.89 (20 shares)

Snapshot Intraday on 6/9/25 after pare

The AC per share was reduced from $10.34.  

Dividend: Quarterly at $.30 per share, slashed from $.45 effective for the 2020 second quarter payment. This slash was caused by the pandemic. 

SBRA Stock Dividend History & Date | Seeking Alpha

Yield at $9.89: 12.13%

Last Ex Dividend: 5/16/25 (owned all as of) 

Last Earnings Report (Q/E 3/31/25): 

SEC Filed Press Release

SEC Filed Supplemental 295 of the 364 properties are triple net leased, page 4. For the remaining 69 properties, "recurring capital expenditures" in the 2025 first quarter were reported at $1.257M, page 6. Debt is listed at page 14.

Revenues: $183.543M

GAAP E.P.S. $.17 

Normalized FFO per share: $.35

AFFO per share: $.37 

Reconciliation GAAP to AFFO: 

"Normalized FFO and Normalized AFFO also do not consider the costs associated with capital expenditures related to the Company’s real estate assets nor do they purport to be indicative of cash available to fund the Company’s future cash requirements." 

Some Other Sell Discussions: Item # 3.B.  Pared SBRA in Schwab Account - Sold 5 at $19.66 (11/7/24 Post)(profit snapshot = $31.47); Item # 2.J. Pared SBRA Again - Sold Highest Cost 7 Shares in Fidelity Account at $19.25 and Item # 2.K. Pared SBRA in Schwab Account - Sold 10 at $19.22 (10/31/24 Post)(profit snapshots = $79.17); Item # 4.F. Pared Duplicate Position in SBRA - Sold 2 at $18.71 - Fidelity Account  (10/24/24 Post)(profit snapshot = $7.17); Item # 4.H. Pared SBRA in Fidelity Account - Sold 15+ at $16.6 (8/9/24 Post)(profit snapshot = $19.24); Item # 1.A. Pared Duplicate Position in SBRA - Sold $14+ at $15.52 (4/5/24 Post)(profit snapshot = $25.41);  Item # 3.C. Eliminated 1 of 2 Duplicate Positions in SBRA - Sold 25. at $14.29  (10/14/23 Post)(profit snapshot = $26.59)

I own 40+ shares in my Schwab taxable account with the average cost per share at $12.17.  

E. Pared PRPFX - Sold 10 at $67.16 - Schwab Account: 

Quote: Permanent Portfolio; Investor Class Overview 

2/19/25 Close: $63.86

Proceeds: $671.16

Profit Snapshot: $261.97

PRPFX-Morningstar (5 stars, classified as a moderate allocation fund). The rating is based on performance within that classification. 

Remaining shares: 217+

Average cost per share: $40.96

Closing Price as of 6/10/25; Unrealized Gain = $5,716.97

I am using average cost per share so there is no change in my AC per share when I sell shares, unless I buy additional shares or reinvest the dividend which I do not plan on doing. 

Dividends: Paid Annually

PRPFX Stock Dividend History & Date | Seeking Alpha

Dividends Paid 2020-2024: $6.06 per share

I have taken the dividends in cash. 

Last Discussed: Item # 1. Sold 10 of 237+ PRPFX at $66.01(5/16/25 Post)(profit snapshot = $250.48). I have nothing to add to that recent discussion. I included  snapshots of prior realized gains including $590.26 in 2015, noting that the fund paid $10.21 per share in dividends in 2013-2015 when I owned shares.  

PRPFX Realized Gains to Date: $1,411.55

My last elimination was in 2017. Item # 2.A. Eliminated PRPFX - Sold 125+ at $40.22 (8/7/2017 Post)

Recent performance has been helped by the funds allocation to silver and gold bullion that generally hovers near 25% of the total. 

G. Eliminated FLGB - Sold 5 at $31.06: 

Quote: FLGB | Franklin FTSE United Kingdom ETF Overview

Proceeds: $155.32

2/19/25 Close: $28.27

Sponsor's website: Franklin FTSE United Kingdom ETF - FLGB

Expense Ratio: .09%

The expense ratio is lower than a similar index ETF offered by Ishares that has a .50% expense ratio: iShares MSCI United Kingdom ETF | EWU I will not buy the foreign country index funds offered by IShares.  

Profit Snapshot: $20.32

Last Discussed: Item # 2.A. Bought 5 FLGB at $27 (1/29/25 Post) 

Dividends: Paid semiannually

FLGB Stock Dividend History & Date | Seeking Alpha

Last Dividend: $.5191 with a 12/20/24 ex dividend date. 

Top 10 Holdings as of 6/6/24: 

4. Corporate Bonds: 

As previously discussed, I have been taking on more interest rate risk by buying corporate bonds maturing after 2029. 

There are several reasons why I am doing so: (1) I earn more current income with those bonds compared to short term maturities; (2) my weighted average duration is still less than 3 years with an extreme overweighting in securities maturing in less than 1 year; and (3) a concern that the Federal Reserve will respond to recessionary conditions by lowering the Federal Funds rate to less than 1% and restarting Q/E again. That concern can not be dismissed as improbable given how the Fed has responded to recessions over the past 20 years. 

A. Bought 2 Ohio Power 5% SU Maturing on 6/1/33 at a Total Cost of 98.698 - Fidelity Account:  

Issuer: Wholly owned operating subsidiary of the utility holding company American Electric Power Co. Inc. (AEP) 

AEP SEC Filings 

AEP 2024 SEC Filed Annual Report 

Ohio Power Financial Results (in Millions) for 2022-2024: 

Page 149, 2024 AEP Annual Report

Finra Page: Bond Page | FINRA.org

Credit Ratings: Baa1/BBB+

Bond Prospectus (4/23): $400M offered at 99.528

YTM at Total Cost: 5.201%

Current Yield at TC = 5.066%

Ohio Power Last Bond Offering (5/24): Prospectus 

B. Bought 2 Americold Realty Operating Partnership 5.6% SU Maturing on 5/15/32 at a Total Cost of 99.803 - Vanguard Account: 

Issuer: Operating entity for Americold Realty Trust Inc. (COLD), who guarantees the notes: 

Bond Prospectus (3/2025) The public offering price was at 99.862. 

I recently started a small ball position in the common stock. 

COLD SEC Filings 

COLD 10-Q for the Q/E 3/31/25 Debt is discussed starting at page 48.

Finra Page:  Bond Page | FINRA.org

Credit Rating: Baa3 by Moody's  

Fitch Affirms Americold at 'BBB'; Outlook Stable

Morningstar DBRS Assigns Credit Rating of BBB With Positive Trend to Americold Realty Operating Partnership, L.P.'s $400 Million of 5.600% Notes Due 2032 | Morningstar DBRS

YTM at Total Cost: 5.631%

Current Yield at TC: 5.611%

So far, I have only bought $8,000 in principal amount of corporate bonds maturing in 2032. I have $10K in municipal bonds maturing in 2032 which includes 5 of the Williamson County 3.25% GO rated AAA. 

C. Bought 2 First American Financial 5.4% SU Maturing on 9/30/34 at a Total Cost of 97.263: 

Issuer: First American Financial Corp. (FAF) 

FAF Analyst Estimates | MarketWatch

FAF SEC Filings 

10-Q for the Q/E 3/31/25 

SEC Filed Earnings Press Release for the Q/E 3/31/25 

FAF is not a bank holding company. The company offers real estate title insurance and provides escrow, closing services and related activities. The other business segment issues property and casualty insurance and home warrant products.  

Finra Page: Bond Page | FINRA.org

Credit Ratings: Baa2/BBB-

YTM at Total Cost: 5.829%

Current Yield at TC: 5.552% 

D. Bought 2 MPLX LP 5.5% SU Maturing on 6/1/34 at a Total Cost of 99.352: 

Issuer: MPLX L.P  (MPLX) - Energy Infrastructure 

MPLX Analyst Estimates | MarketWatch

MPLX SEC Filings

10-Q for the Q/E 3/31/25 

"MPLX LP is a diversified, large-cap master limited partnership formed by Marathon Petroleum Corporation that owns and operates midstream energy infrastructure and logistics assets, and provides fuels distribution services."  MPC is "engaged in the gathering, transportation, storage and distribution of crude oil, refined products, other hydrocarbon-based products and renewables; the gathering, processing and transportation of natural gas; and the transportation, fractionation, storage and marketing of NGLs".  

The general partner is Marathon Petroleum Corp. (MPC) who owns about 64% of the partnership units.  

MPLX SEC Filed 2024 Annual Report A map of MPLX facilities can be found at page 3. 

SEC Filed Earnings Press Release for the Q/E 3/31/25 (Net income at $1.1B with distributable cash flow at $1.5B)

Finra Page: Bond Page | FINRA.org

Credit Ratings: Baa2/BBB

YTM at Total Cost: 5.593%

Current Yield at TC: 5.536%

I had 2 MPLX LP 4 SU bonds mature on 2/1/25:

I own 2 other MPLX LP bonds that are stacked as follows: 

2 MPLX LP 4.25% SU Maturing on 12/1/27, Bond Page | FINRA.org

2 MPLX LP 4% SU Maturing on 3/15/28, Bond Page | FINRA.org

I am not likely to buy more until I receive the proceeds from the 2027 bond.

E. Bought Safehold Operating 5.65% SU Maturing on 1/15/35 at a Total Cost of 98.167: 

Issuer: Operating entity for Safehold Inc. (SAFE) who guarantees the notes: 

Bond Prospectus 

This note was offered to the public at 98.812 last November. 

Safehold Inc. 10-Q for the Q/E 3/31/25 

Safehold, through its operating subsidiary, is organized as a REIT and owns ground leases.  

Website: Safehold - The Modern Ground Lease Company

Current Safehold Portfolio | Safehold

SEC 2024 4th Quarter Report and Investor Slide Presentation 

Finra Page: Bond Page | FINRA.org

Credit Ratings: A3/BBB+

Fitch recently upgraded its rating to A- from BBB+, Fitch Upgrades Safehold's Rating to 'A-'; Outlook Stable

YTM at Total Cost: 5.901%

Current Yield at TC: 5.73%

F. Bought 2 Ameren 5.375% SU Maturing on 3/15/35 at a Total Cost of 98.74: 

Issuer: Ameren Corp. (AEE) - Utility Holding Company

AEE Analyst Estimates | MarketWatch

AEE SEC Filings 

AEE 2024 SEC Filed Annual Report The two operating subsidiaries are Ameren Illinois and Union Electric, both of whom issue first mortgage bonds.  

AEE SEC Filed Earnings Press Release for the Q/E 3/31/25 

Finra Page: Bond Page | FINRA.org

Credit Ratings Baa1/BBB

Prospectus (2/25) 750M offered at 99.822

YTM at Total Cost: 5.542%

Current Yield at TC: 5.444%

I recently bought a first mortgage bond issued by Union Electric, a AEE owned operating utility. Item # 3.B. Bought 2 Union Electric 5.2% First Mortgage Bonds Maturing on 4/1/34 at a Total Cost of 99.21 (5/30/25 Post); Bond Page | FINRA.org

I previously owned first mortgage bonds issued by the other operating utility, Ameren Illinois, but those bonds were called early at a premium payment in 2020, and I have not yet replaced them with new purchases. 

I had 2 Ameren 3.25% SU bonds mature on 3/3/25. 

I currently own 2 Ameren 3.65% SU bonds that mature on 2/15/26 that were bought on 11/6/24 at a total cost of 98.751.  Bond Page | FINRA.org

G. Bought 2 Southwestern Public Service 5.3% First Mortgage Bonds Maturing on 5/15/35 at a Total Cost of 98.046: 

Issuer: Operating subsidiary of the utility holding company Xcel Energy Inc.  (XEL)

XEL 10-Q for the Q/E 3/31/25

Finra Page: Bond Page | FINRA.org

Prospectus

Credit Ratings: A3/A-

YTM at Total Cost: 5.557%

Current Yield at TC: 5.406%

10-Q for Southwestern Public Service for the Q/E 3/31/25

I now own 4 bonds. 

5. Treasury Bills Purchased at Auction: $16,000 in principal amount

All purchases were made in my Schwab account using proceeds from maturing T Bills. 

A. Bought 10 at the 6/9/25 Auction: 

3 month T Bill

Mature on 9/11/25

Interest: $107.43

Investment Rate: 4.356%

B. Bought 5 at the 6/11 Auction: 

119 Day Bills: 

Matures on 10/14/25

Interest: $69.75

Investment Rate: 4.339%

C. Bought 1 at the 6/10/25 Auction: 

1 Year T Bill

Matures on 6/11/26: 

Interest: $39.84

Investment Rate: 4.118%

When held to maturity, the interest will be taxed in 2026. I will be shifting more interest income tax recognition into 2026 starting in July with 6 month T Bill purchases. 

6. Leveraged Bond CEFs: 

A. Restarted BHK - Bought 20 at $9.5: 

Quote: BlackRock Core Bond Trust Overview - Leveraged Bond CEF

Cost: $191

Sponsor's website: Core Bond Trust | BHK

As of 5/30/25, effective duration was at 9.05 years and the leverage was at 40%. To predict the impact on net asset value per share resulting from changes in interest rates, multiply the percentage change by the duration as just a rule of thumb. So if interest rates went down 1%, the net asset value per share would increase somewhere close to 9.35% and down 9.35% with a 1% increase. 

Credit Quality as of 5/30/25: 

Last Discussed: Item # 1. Eliminated BHK - Sold Remaining 54+ Shares at $11.64  (10/24/24 Post)(profit snapshot = $89.67) The closing market price was then at a +8.75% premium to net asset value per share.  

Last Buy Discussion:  Item # 2.A. Added to BHK - Bought 5 at $10.56; 5 at $10.33 (5/27/23 Post) Those shares have been profitably sold. 

Dividend: Monthly at $.0746 per share ($.8952 annually)

BHK Stock Dividend History & Date | Seeking Alpha

ROC supported. 

Yield at $9.5: 9.42%

Next Ex Dividend: 6/13/25

Data Date of 6/9/25 Trade: 

Closing net asset value per share: $10.12

Closing market price: $9.5

Discount: -6.13%  

Average 3 year discount: -.46%

The consider to restart a position was triggered by a greater discount to the 3 year average. 

Sourced: BHK - CEF Connect (Click "Pricing Information" tab)

Other Sell Discussions: Item # 2.D. Pared BHK - Sold 20 at $11.85 (9/19/24 Post)(profit snapshot = $21.24);   Item # 2.N. Pared BHK - Sold 5+ at $11.36 (8/8/24 Post)(profit snapshot = $4.76);  Item # 3.A. Sold 100 BHK at $12.74 (1/20/19 Post)(profit snapshot = $63); Item # 1 Sold Remaining BHK at $13.07 Update For CEF Basket Strategy As Of 3/21/16 - South Gent | Seeking Alpha (profit snapshot = $28.17); Item # 4 Sold 200 of 300 BHK at Update For CEF Basket Strategy As Of 2/26/16 - South Gent | Seeking Alpha (profit snapshot = $47.43); Pared Interest Rate Risk Exposure In Roth IRA: Sold 300 ACG At $7.81 And 200 BHK At $13.86 - South Gent | Seeking Alpha (profit snapshot = $99.55); Item # 1 Sold 200 BHK at $13.86-Taxable Account-Completes BHK Transition to Roth IRA (1/14/15 Post)(profit snapshot = $75.23); Sold All of the Bond CEF BHK at $14.058 (2/21/12 Post)(profit snapshot = $68.3)

The long term decline in BHK's price does not inspire confidence in the managers of this fund, particularly since investment grade corporate bonds were in a bull market for most of the period prior to 2022.  

Realized Gains in BHK to Date: $503.87 (of which $497.35 discussed in posts)

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.