Showing posts with label GATX. Show all posts
Showing posts with label GATX. Show all posts

Wednesday, July 24, 2019

Observations and Sample of Recent Trades: BHRPRD, KR

Economy: 

 US existing home sales June 2019: Down 1.7% (consensus estimate was -.2%)

Trump's tariffs trip up the all-American RV industry - Reuters (RV shipments to dealers have declined 22% this year, compared to 2018, over the first five months. Shipments were down 4% last year. The industry has been hit by cost increases caused by Trump's tariffs on aluminum and steel as well as "other duties on scores of Chinese-made RV parts, from plumbing fixtures to electronic components to vinyl seat covers.")  

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 This is an incredible cover of Led Zeppelin's Stairway to Heaven: Heart (Ann Wilson vocals) - Stairway to Heaven (Live at Kennedy Center Honors Led Zeppelin) [FULL VERSION] - YouTube

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 Issuer Redemption Notices: 

 Since my last post, I received notice that the REIT Ventas (VTR) will redeem its 2.7% SU maturing on 4/1/20 on 8/19/19. I own 6 bonds with 3 of them owned in my Fidelity taxable account: 


There will be a small make whole payment of $16.8 for the six bonds, plus accrued interest, in addition to the $6K in principal amount. 

 Goldman Sacks will redeem on 7/29/19 its 2.75% SU maturing on 5/29/20. I own 1 bond. 
I recently bought that bond (4/30/19). Item # 3.E.

 I am making my reinvestment problem worse by selling intermediate term corporate bonds, but I would prefer realizing the gains now rather than receiving the relatively low interest payments. 

 I am trading intermediate term corporate bonds aggressively. 

 Hopefully, there will be another interest rate spike next year where I can buy the bonds back closer to their respective maturities and at lower prices than my previous purchases.      

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 Portfolio Management: 

 I am going to redirect the proceeds from some maturing securities into dividend growth stocks. I will be limiting my selection to stocks with starting yields over 3% that have already been beaten up. Kroger and Kellogg are in this category. 

 This article lists several stocks in that category: These dividend stocks haven’t been scooped up by investors yet-MarketWatch {I am not chomping at the bit to buy Macy's, Macerich Co., and Simon Property Group Inc, three  of the stocks mentioned in that article. Macerich and Simon Property are mall REITs. Newell Brands Inc. is on my watch list, but its turnaround is too iffy and its debt load is worrisome.}

 I am exercising some judgment that the stock declines have probably been overdone to the downside; or at least the recent declines in prices squeezes out much of the downside risks.  

 I will not buy a full position in one trade and will reserve an option to average down. If I average down, I will consider selling the higher cost lot when I can do so profitably.  

 Stocks like Kroger and Kellogg are clearly out-of-favor and may remain so for an unknowable period of time. 

 For these kind of stocks, victory is defined as a realized annualized total return in excess of 7%.  

 CD yields have both fallen and flattened out along the yield curve: 
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Trump: 

 The Nobel Peace Prize Winner Nadia Murad told Donald that ISIS had killed her family. The Duck then asked her "Where are they now".  A Yazidi woman from Iraq told Trump that ISIS killed her family. ‘Where are they now?’ he asked. - The Washington Post

 Donald is not a good listener, which is usually the case for those who have the narcissistic personality disorder. Narcissistic personality disorder - Symptoms and causes-Mayo Clinic (Donald check's all of the boxes for that mental illness) He enjoys listening to himself pontificate on an endless variety of subjects where his ignorance radiates blindingly bright, easily visible to those who are not blind.   

 It looks like Trump's DOJ has placed a muzzle on Mueller's testimony. DOJ tells Robert Mueller 'any testimony must remain in the boundaries of your public report' I will not be watching his testimony today. 
Facts straight from Mueller’s mouth? They won’t put out the gaslighting fire - The Washington Post ("Gaslighting explains why fact-checking generally doesn’t work. And if the truth contradicts people’s favored leaders, hearing it might even push some voters to harden their opposition to it. Trying to contain gaslighting with the truth is like fighting a wildfire with surgical forceps.") 

 The author believes that it is possible to penetrate the  Trumpster's Alternate Reality with facts. I view it as futile and a waste of time.   

Trump is a gaslighter and has mastered the art for the tens of millions who are susceptible to manipulation by this demagogue. 

 Trump: “Stick with us. Don't believe the crap you see from these people, the fake news . . . What you’re seeing and what you’re reading is not what’s happening.”  Translation: Ignore facts and believe whatever the Duck says. 

'Send her back!' chant shows Trump's ugly plan to get reelected The Trumpsters new chant of "Send her back" refers to Ilhan Abdullahi Omar who was born in Somalia and became a U.S. citizen in 2000 when she was 17. Melania Trump claims to have become a citizen in 2006.  

My idea is to send all of the Trumps back to Germany.  

 Maybe we can allow Donald to come back when and if he can pass the citizenship test. Some Trump opponents may complain about such leniency. I view it as unlikely that Donald could ever pass a citizenship test since reality creations about American history are not viewed as correct answers by the test graders. 

 Most of us would fail the U.S. citizenship test, survey finds

 The Extremely Stable Genius sees a difference behind the Trumpster's chant "send her back" and his tweet "go back". Trump says he disagrees with ‘send her back’ chant directed at Rep. Omar during his rally despite his previous ‘go back’ tweet Both are clearly racist comments and are recognized as such by most people, excluding the Trumpsters of course.  

Donald was really not concerned about anyone viewing his "go back" comments as racist since "many people agree." Trump on racist tweets: “It doesn’t concern me because many people agree” - Vox He is right about that claim. A poll showed that a majority of republicans agreed with him. Most Republicans agree with Trump’s ‘go back’ to your country tweets, polls show - MarketWatch   

 How a racist tweet became a Trump rally chant in three short days - The Washington Post

 Trump calls rally crowd ‘incredible patriots,’ a day after trying to distance himself from ‘Send her back!’ - The Washington Post

40% of Americans agree with Trump's "go back" to their countries tweet: Most Americans disagree with Trump's "go back" tweets — CBS News poll - CBS News; NBC News poll of the South: Voters' support for Trump grows 

 Illinois GOP group removes post calling congresswomen ‘Jihad Squad’  

Gretna police officers Charlie Rispoli and Angelo Varisco fired for suggesting Alexandria Ocasio-Cortez "needs a round" after reading fake news post on Facebook - CBS News It is hard for me to determine whether the Russians or the Trumpsters are the primary spreaders of fake news in the U.S.

 Here's the British bigot who Trump retweets-CNN

Their ancestors were slain a century ago along the US-Mexico border by Texas Rangers. They say now is the time to retell the horror - CNN There are two Americas. I am not talking about blue and red states here.  

 Opinion | Donald Trump Hates America - The New York Times (opinion column written by the centrist David Brooks)

 Thanks to Demagogue Don and other reality creators, a recent poll found that 1/3rd of Americans still believe Obama was probably born in Kenya.  

 Fact-checking Trump’s misleading attacks on Omar, Ocasio-Cortez in North Carolina | PolitiFact; 

 Trump's False Claims About Rep. Ilhan Omar - FactCheck.org Facts do not matter to Trump and his True Believers and never will.  

 Trump and Stephen Miller falsely claimed that Alexandria Ocasio-Cortez called the U.S. garbage when she clearly said that some policies were garbage in her opinion. Fox News Defends AOC and Uses Trump Tweet To Destroy Stephen Miller

 There can be reasoned and good faith criticisms of policy proposals made by Democrats without resorting to knowingly false characterizations of their statements. The Trumpsters are just more easily swayed and incensed by the false narratives created by Trump and his minions than by good faith and factually based discussions of policy which bores them.  

 The Extremely Stable Genius claimed that he could win the Afghan war in 1 week, but has so far refrained from implementing his victory plan since it would require killing 10 million people. Trump: I could win Afghanistan war 'in a week'-POLITICO; Afghanistan asks for explanation after Trump claims US could wipe it 'off the face of the Earth' 

 Perhaps those 10 million people need to profusely express their gratitude that the Duck is such a humanitarian, as proven by his life's work of good deeds and charitable contributions prior to becoming President and his never failing attendance at church services. 

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 1. Bought 50 KR at $21.16-Used Commission Free Trade:

This purchase, like the Kellogg one discussed in the prior post, is best described as thoroughly contrarian. The problems are well known but are probably overblown IMO based on the $21.16 price. 

 On the day of my purchase (7/22/19), the stock made a new 52 week low. 

 The stock is in falling knife mode. 

 I will consider buying another 50 shares at below $20. 

 Closing Price Yesterday: KR $20.82 -$0.04 -0.19% (a new 52 week low of $20.7 was hit intra-day)

 Quote: Kroger Co.  (KR)
P/E On Next F/Y Year's EPS Consensus estimate of $2.31 = 9.01 (at $20.82 closing price 7/23) 
Sourced as of 7/23/19: KR | Kroger Co. Analyst Estimates | MarketWatch

 Overview – The Kroger Co.
KR SEC Filings
KR 10-Q for the Q/E 3/25/19
Annual Report for the F/Y Ending on 2/2/19

 Dividends: Quarterly at $.16, raised from $.14 effective for the 2019 3rd quarter ($.64 annually)

 Dividends – The Kroger Co.

 Kroger Board of Directors Raises Quarterly Dividend by 14%

 The quarterly rate was at $.045 per share 10 years ago.

 Next Ex Dividend Date: 8/14/19

 Dividend Yield at $21.16= 3.03%

 KR 5 Year Chart as of day of purchase (7/22/19): Ugly

Maybe my mind has turned to mush since I actually find that chart appealing for a first time purchase.

 Analyst Reports:

 Argus (3/2019): Buy with a $30 price target reduced from $35

 Morningstar (6/20/19): 4 stars with a FV at $28.5 

S & P (6/20/19): 4 stars with a $27 price target

 Credit Suisse (6/20/19): Outperform with a $27 PT reduced from $30

 All of those reports are available to Schwab customers.

 Recent Earnings Report: Kroger Reports First Quarter 2019 Results (released on 6/20/19)

 GAAP E.P.S. = $.95
Non-GAAP E.P.S. = $.72
Ex Fuel Same Store Sales: 1.5%
Digital Sales: = +42%
Net Debt to Adjusted EBITDA = 2.54

 The GAAP number is higher due to a $57M real estate gain.

 The market and analysts generally responded unfavorably to this report. 

 The Credit Suisse analyst reduced the PT to $27 from $30 in response, calling the report "uninspiring" and doing "little to derail the bear and (far more unpopular) bull theses". One can only glance at the stock chart and conclude that the bear thesis is the popular one.

 A central part of the bear thesis is competition originating from Amazon's acquisition of Whole Foods, the grocery departments at Walmart and Target, and other grocery retailers.

 The negativity is IMO generated by accentuating the negative and downplaying the positive.

 The CS analyst emphasized, for example, that identical store sales increased by 1.5% compared to the consensus 1.7% which was regarded as material by that analyst. That analyst acknowledged that the non-GAAP E.P.S. beat the consensus estimate by 1 cent.

 One positive is Kroger's growing private label brands. The company added 219 new private label brands during the quarter that will generated $225M in incremental sales during the quarter. Private label brand sales increased overall by 3.3%. Kroger's private brands generated about 30.5% of its total unit sales in F/Y 2018.

 Kroger has now implemented digital ordering and curbside pickup in all of its 2750 stores.

 The natural and organic store brand Simple Truth hit $2.3B in revenues in F/Y 18. Argus notes that Simple Truth was now the largest natural and organic brand by volume.

 Argus also points out that KR has increased its dividend at a compound annual rate of 11.5% over the past 5 years.

 2019 Guidance as of 6/20/19:

 Other Material News:

 Kroger Completes Sale of Turkey Hill Business to Peak Rock Capital Affiliate (4/29/19)(sold for $215M and will use proceeds to reduce debt)

Kroger Completes Sale of Convenience Store Business to EG Group (4/20/18)(after tax proceeds of $1.7B of which $1.2B was used for an accelerated share repurchase program)

 Senior Unsecured Bonds: Rated Baa1/BBB

 I have been trading KR's senior unsecured debt and have recently eliminated all of my KR intermediate term bonds. Those sales were not motivated by concerns about credit risk. I have substantially pared my intermediate corporate bond exposure by selling into a strong bond rally.

 Those bonds were sold with the anticipation of buying them back during the next interest rate spike. 

I currently own the following KR SU bonds: $4K par value

 2 KR 1.5% SU Maturing on 9/30/19
2 KR 3.3% SU Maturing on 1/15/21

2. Intermediate Term Bond Ladder Basket Strategy: 

A. Sold 1 GATX 3.25% SU Maturing on 9/15/26: 


Profit Snapshot: $53.55


Finra Page: Bond Detail

As shown in the FINRA price chart, this bond closed at 89.7 on 11/30/18. I bought this bond in March 2019. The decline in this bond's price reflected in that chart was not due to increased credit risks but to a rise in interest rates late last year. 

Issuer: GATX Corp. 

Sold at 99.227
YTM at 99.227 = 3.371%
Proceeds at 99.127 (after $1 commission)

I previously sold this bond at 97.543: Item # 4.C. (12/26/17 Post) The YTM then was 3.579%. 

In this account, I have 2 GATX 2.5% SU bonds that mature on 7/30/19.

 B. Sold 1 GATX 3.25% SU Maturing on 3/30/25: 

Profit Snapshot: +$18.75

Item # 1.E. Bought 1 GATX 2023 SU at a Total Cost of  97.095 (3/13/17 Post)

 History: 
FINRA Page: Bond Detail

 Sold at 99.919
YTM at 99.919 = 3.265%
Proceeds at 99.719 (after $2 brokerage commission)

3. Eliminations:

 A. Sold 50 BHRPRD at $25.25:

Quote: Braemar Hotels & Resorts Inc. 8.25% Preferred Series D Stock
Issuer: Braemar Hotels & Resorts Inc. (BHR) (externally managed-major negative in this case)

 Profit Snapshot: +$251.44

Item # 1.A. Bought 50 BHRPRD at $20.02 (1/20/19 Post)

 Security Description:

 Prospectus 

Par Value= $25
Classification: Equity Preferred Stock
Advantages and Disadvantages of Equity REIT Cumulative Equity Preferred Stocks
Capital Structure Placement: Senior only to common stock
Stopper Clause: Yes
Dividend: Quarterly, Cumulative and Non-Qualified
Issuer Optional Call: On or after 11/20/23

 Last Ex Dividend: 6/27/19 (received, see snapshot above)

 4. Short Term Bond/CD Ladder Basket Strategy: 

 A. Bought 9 Treasury 28 Day Bills Maturing on 8/20/19: 
IR = 2.128% 

This purchase flushes out the recently received proceeds from maturing short term securities. The purchases of one month treasury bills at auctions only briefly postpones my Day of Reckoning relating to reinvestment options.   

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 sell 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 family members. 
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Wednesday, August 15, 2018

Observations and Sample of Recent Trades: SDIV, TANNL, TPVG

Economy: 

U.S. budget deficit this year already 21% higher than last year - CBS News

 US budget deficit increases 21%, on track for biggest gap in six years

 The cost of servicing that ballooning deficit is also rising. The tax cuts will IMO have some net positive benefits for the real economy. The major benefit will be boost corporate profits that will largely be channeled into more stock buybacks and dividend increases for publicly traded companies. 

 The 2019 Y-O-Y growth in corporate profits will not be favorably impacted by the corporate federal income tax cut.  

Tax cut triggers $437 billion explosion of stock buybacks; 

Companies to pour $2.5 trillion into buybacks, dividends, M&A in 2018 

 The result so far is a powerful boost to stock prices while real wage growth has stagnated at near zero based on current inflation numbers.  
Ultimately, the health of the American economy will not depend on how rich the top 1% become, but on the financial health of the bottom four quintiles. The tax cuts will have no net benefit for them since whatever tax savings may exist (and many will face tax increases) will be offset by other factors including a lack of real wage growth, increasing levels of consumer debt and interest rates thereon, rising rents and home costs (e.g. property taxes, home insurance), and rising health care costs.  

 Consumers turning more pessimistic about wages, stocks, home prices, taxes - MarketWatch

Total Household Debt Rises for 16th Straight Quarter - FEDERAL RESERVE BANK of NEW YORK ("total household debt increased by $82 billion (0.6%) to $13.29 trillion in the second quarter of 2018. It was the 16th consecutive quarter with an increase, and the total is now $618 billion higher than the previous peak of $12.68 trillion, from the third quarter of 2008.")

 Consumer debt is set to reach $4 trillion by the end of 2018 

 Consumer debt is at an all-time high. Should banks be worried? | American Banker

 The return of consumer debt | Deloitte Insights

Household Liability Level and a Percentage of Disposable Personal Income 

 Millions of households have benefited longer term by locking in abnormally low home mortgage rates. That has contributed to a decline in debt service payments as a percentage of disposable income.  

Household Debt Service Payments as a Percent of Disposable Personal Income 

 The problem is more in the future than the present. 

 The current abnormally low ratio is not going to hold for that much longer, as the level of consumer debt increases along with the cost of servicing the debt. 

 And, when the 15 year mortgages roll over and adjustable rate mortgages reset to higher rates, the favorable impact from abnormally low mortgage rates on debt services costs will wear off and become more burdensome. 

 Then there is the natural rise in consumer financial stress, delinquencies  and defaults that occur during a recession which exposes the improvident extensions of credit.  

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Don the Demagogue spewed more venom at Harley Davidson over the weekend and applauded Americans boycotting Harley Davidson motorcycles made in the U.S.. Trump applauds Harley Davidson boycott, says it's a 'really bad move' 
Motorcycles sold in the U.S. are manufactured in the U.S. 

 The Duck did not mention that his trade war caused Europe to impose a 31% tariff on U.S. exports of Harleys, up from 6%, which understandably caused Harley to move its European market production to overseas plants in order to remain competitive. Don the Con will not take any responsibility for U.S. job losses caused by his tariff wars-even when he urges a boycott of products made in the U.S. 

 Canadian job creation surges in July - MarketWatch

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Markets and Market Commentary: 

 I hope that the U.S. stock market's directional moves will soon cease to be positively correlated with the movement of the USD/TRY. Yesterday, Turkey's lira bounced up and U.S. stocks had an up day. Dollar hits fresh 14-month high, but Turkish lira rebounds - MarketWatch I expect the USD/TRY to have wild swings that will be unpredictable day to day. Lira crisis: Emerging markets, US dollar, Turkey-EU relations impacted I am not seeing any positive actions being taken by Turkey's government to deal with its currency crisis. 

 Bull trend absorbs shot across bow, Dow industrials maintain trendline support - MarketWatch

Behold the ‘scariest chart’ for the stock market-MarketWatch (the median price to sales ratio for the S & P 500 is now about two times higher than it was in 2000. The cap weighted P/S ratio is about equal to its high point in 2000). 


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Trump: 

Demagogue Don continues to swing at anyone who has come into contact with the Russia investigation. As usual Trump focuses on personal ad hominem attacks: 

Note that Donald continues to blame the Attorney General for allowing the investigation to proceed, stating that Sessions is "scared stiff" to stop the "Witch Hunt" and is "Missing in Action" meaning that the Attorney General is not doing what he is supposed to do and that is to protect Our Supreme and Great Leader from any and all investigations. 

 I would note also that Bruce Ohr worked in counternarcotics at the DOJ rather than counterintelligence.   

 Donald's attacks have become even more venomous after the onset of Manafort's criminal trial and as the Mueller investigation circles around Roger Stone. Mueller investigation: Roger Stone allies continue to be questioned - Vox  

 Judge holds Roger Stone associate in contempt for refusing to testify in Russia investigation  

 Roger Stone posts then deletes Nazi Space Force meme. He says he didn’t notice the swastikas. (impossible to miss)

 Once ‘No Longer a Nuclear Threat,’ North Korea Now in Standoff With U.S.


President Trump’s new favorite trade talking point falls apart under scrutiny - The Washington Post

Four Biggest Takeaways From Bombshell Leaked Audio Of Rep. Devin Nunes (It is hardly surprising that Nunes and other House republicans will do whatever they can do to obstruct investigations that could potentially lead to Donald's impeachment or to unfavorable revelations about him. Their ongoing obstruction efforts now includes a baseless effort to impeach the Deputy Attorney General, though Nunes says the House republicans will not impeach Rosenstein until the Senate confirms Kavanaugh to the Supreme Court in order to avoid distraction. Devin Nunes leaked audio reveals House plans to impeach Rod Rosenstein.)

 Yes, Donald Trump has been linked to the mob | PolitiFact; 

 Just What Were Donald Trump's Ties to the Mob? - POLITICO Magazine; 

 Trump’s résumé is rife with mob connections - The Washington Post; 

 A Brief History of Donald Trump and the Mafia - VICE

 Maybe there are a growing number of voters who have difficulty believing Donald is an Honest Stable Genius. Donald's approval rating slipped to 39% for the week ending 8/12/18: Gallup Trump Job Approval (Weekly)  

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 States fight Trump on non-ObamaCare health plans (Trump is misleading the public on the poor coverages provided by these coverage lite plans). 

 'Hitler was right': Republican KC area winner of Missouri House primary leaves trail of bigotry

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1. Intermediate Term Bond Ladder Basket Strategy:

 A. Bought 30 TANNL at $23.99-Used Schwab Commission Free Trade:


Quote: TravelCenters of America LLC 8% Senior Notes due 12/15/29 Stock Quote (TANNL) - MarketWatch

 Yesterday's Closing Price (ex-interest): TANNL $23.4082 +$0.0382 

 This is a high risk exchange traded baby bond issued by TravelCenters of America LLC (TA). If this bond was rated, which it is not, the bond would be somewhere in junk territory. My best guess is that the grade would start with the letter "C" or be at or near the lowest "B" junk rating. 

 TANNL is a senior unsecured bond with a $25 par value that makes quarterly interest payments. 

TA Analyst Estimates

 TA SEC Filings

 TravelCenters of America LLC Announces Second Quarter 2018 Financial Results; Robust Performance by Travel Centers Segment Including Truck Service Growth Programs; Quarterly Loss Due to Impairment Charge 

 10-Q for the Q/E 6/30/18 

2017 Annual Report (debt discussed starting at page F-15; risk summary starts at page 20 and more risks are highlighted in pages 2-5 under a "Warning" label)  

 Prospectus (risk summary starts at page S-5)

 Stocks, Bonds & Politics: Exchange Traded Baby Bonds

 Last Ex-Interest Date: Yesterday 8/14/18 TravelCenters of America LLC (TANNL) Dividend Date & History - NASDAQ.com (shortly after my purchase)

 I will receive that interest payment. 

 Yield at $23.99 = 8.34%

 The issuer has the option to call at par value on or after October 15, 2018. I would be surprised to see that happen since the issuer would probably be unable to refinance at a lower coupon.

 I have periodically traded the three TravelCenter exchange traded senior bonds and have so far managed to do so profitably. It remains to be seen whether I have gone to the well one time too often.  

 My last foray into TA exchange traded debt involved the purchase of  the TravelCenters of America LLC 8% Senior Notes due 10/15/30 (TANNZ) I bought 30 shares at $17.25. Item # 5 Bought 30 TANNZ at $17.25 (9/3/17 Post) The bond was then in free fall, which periodically happens, due to a really lousy earnings report from the issuer. Item # 1: Sold 30 TANNZ at $24.27 (10/19/17 Post)(profit snapshot = +$211.47). I held that bond long enough to receive one quarterly interest payment. I have learned to shoot first and ask questions much later when it comes to TA debt issues. 


2. Short Term Bond/CD Ladder Basket Strategy: 

Short term treasuries continue to provide a better yield than bank CDs. 

A.  Bought 1 Treasury 1.625% Coupon Maturing on 7/31/19: 
YTM = 2.429%


B. Bought 1 Suntrust 2.25% SU Bond Maturing on 1/30/20-Roth IRA:

Finra Page: Bond Detail (prospectus not linked)

 Issuer: SunTrust Banks Inc. (STI)
STI Analyst Estimates

 2018 Second Quarter Earnings Report
STI SEC Filings
STI 2017 Annual Report

 Credit Ratings (see confirmation)

 Bought at a Total Cost of 99.1 (with $2 Vanguard Commission)
YTM at TC then at 2.874%
Current Yield at TC = 2.2704%

 C. Bought 1 GATX 2.5% SU Bond Maturing on 7/30/19:

I now own 2 bonds. This bond was purchased on 8/2. The 1 year treasury closed that day at a 2.45% yield. 2018 Daily Treasury Yield Curve Rates

 FINRA Page: Bond Detail (prospectus linked)

 Issuer: GATX Corp. (GATX)
GATX Analyst Estimates
GATX Corporation Reports 2018 Second-Quarter Results

 GATX SEC Filings
2017 Annual Report (debt listed at page 85)

 Credit Ratings:

Bought at a Total Cost of 99.798
YTM at TC Then at 2.709%
Current Yield at TC = 2.5051%

 D. Bought at  8/6/18 Treasury Auction $2,000 in principal amount of 13 week bills maturing on 11/18/18 and $1,000 in principal amount of a 26 week bill maturing ion 2/7/19:

 The three month treasury bill was auctioned off to yield 2.01%: Auction Results 13 week.pdf (investment yield at 2.048%)

I also bought one in my Treasury Direct account which is linked to my bank checking account.

 U.S. 3 Month Treasury Bill-MarketWatch

 The six month treasury bill was auctioned off to yield 2.18%. Results for 26 week bill auction.pdf (investment rate at 2.235%) The investment rate is the "equivalent coupon-issue yield". 

The auction result was $98.897889 per $100. Schwab took only the first four fractional digits without rounding the last fractional digit up:  

The interest per $1000 is $11.02. If I invested $1K to buy a 2.18% coupon 6 month bond, the interest would be $10.9. It is my understanding that the "investment rate" is higher at 2.235% since my cost for this 1 bond purchase is $988.98 rather than $1,000. The same is true for all treasury bills (4, 13, 26, 52 weeks) and the equivalent coupon yield moves up slightly as the duration increases.  

 2018 Daily Treasury Yield Curve Rates

3. Income Generation:

 A. Bought 30 SDIV at $20.41-Used Commission Free Trade:

Quote: SDIV Fund - Global X SuperDividend ETF Overview

 Yesterday's Closing Price: SDIV $20.55 +$0.17 +0.83% 

 This ETF has a poor total return track record which makes it IMO an inappropriate long term holding which is reflected in its two star rating from Morningstar. 

 The ETF owns a number of lower quality stocks that pay high dividends.

 The 5 year total annual average total return through 8/14/18 was 4.98%. 

 Whenever you see a total return lower than than the dividend yield, which is the case for this ETF, you know instantly that the share price has declined and taken away some of the dividend's value, which is not a good thing.

 Among the categories of stocks owned by this fund are MREITs and high yielding equity REITs. 

 I own some of these stocks-at the moment-including AGNC, GOV, IRT, LXP, MPW, NLY, SBRA, SIR, SNR, and STWD. 

 Most of those positions were purchased under the "small ball buying program". NLY is a long term position in a Roth IRA where I only own now shares purchased with dividends and am reinvesting the dividends to buy more shares. 

 I recently pared my GOV, IRT and SIR positions. 

 Sponsor's Website: ETF

 Expense Ratio: .58%

 Top 10 Holdings as of 8/10/18:

Dividends: Monthly at a variable rate

 Last Ex Dividend Date: 8/3/18   

 Purchase Restriction: Small Ball Rule  

 Prior Trades: I have not traded this security much and my holding period tends to be short term. I probably have not discussed in my posts all of the trades. I did find these prior discussions:

 Item # 2  Sold 105+ SDIV at $22.54 (8/3/13 Post)(profit snapshot = $93.2)-Item # 1 Added 50 of the ETF SDIV at $20.43-Roth IRA (June 2012 Post) and Item # 1 Bought 50 SDIV at $22.33 (February 2012)

 B. Added 30 TPVG at $13.28 and 10 at $13.02-Used Schwab Commission Free Trades: 


Quote: TriplePoint Venture Growth BDC Corp. (TPVG) 

 Website: TriplePoint Venture Growth 

 Yesterday's Closing Price: TPVG $13.13 +$0.04 +$0.31% 

 This was an average up in this account where my commission free trades have now expired. I used almost all of the 500 granted in August 2016. 

Average Cost Per Share This Account: $12.59

 Dividend: Quarterly at $.36 per share ($1.44 per share annually)

 TriplePoint Venture Growth BDC Dividends

 Next Ex Dividend Date: 8/30/18

 Yield at Total Cost: 11.44%

 Last Discussed: Item # 2.B. Added 10 TPVG at $11.6 (3/19/18 Post); Items 1.B. and 1.C. Bought 50 TPVG at $12.32 and 10 at $12.01 (2/26/18 Post) 

 The shares fell on 8/7/18 due to a public offering of common stock that I viewed as favorable to existing shareholders. The offering was priced above the last reported net asset value per share of $13.45. TriplePoint Venture Growth BDC Corp. Prices Public Offering and Concurrent Private Placement of Common Stock 

 As shown in the following snapshot, TPVG's external manager paid the underwriters' discount of $.41 per share, a cost normally deducted from the proceeds of the offering, and added another $.04 per share to the proceeds realized by TPVG: 

Prospectus

 TriplePoint Venture Growth BDC Corp. Announces Record Investment Income of $16.6 Million and Net Investment Income of $0.50 Per Share for the Second Quarter of 2018 

 Given the favorable offering price and net proceeds per share, the drop in the share price to $13 on 8/8/18 is difficult to understand unless the underwriters had to dump some of the shares below what they paid TPVG which was $13.25. 

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 sell 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 family members. 
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