Saturday, February 23, 2019

Observations and Sample of Recent Trades: BTZ, RMT, TRPPRH

Economy: 

 The Fed announced that it will likely stop its balance sheet reduction soon as it sees risk to growth. The Fed just released minutes from its market-moving meeting 

 Consumer debt default data remains at historically low levels, though there has been a gradual rise in  auto loan delinquencies and defaults staring in 2014 among consumers with FICO scores less than 650. Consumer Credit Default Indices - Specialty - S&P Dow Jones Indices




The unexpected development would be two FED rate hikes in the second half. As Fed Pauses on Interest Rates, Some Economists Now Project Cuts -TheStreet The consensus is for the FED standing pat throughout 2019 or possibly cutting .25% on or before their December meeting. 



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Trump: 

 When the Director of National Intelligence Dan Coats, a former republican senator from Indiana, gave testimony that contradicted Donald's false assertions, Trump was furious since providing truthful testimony was an act of disloyalty to the King. Trump grows frustrated with Coats, leading some to fear he might be fired - The Washington Post

Japan's Abe nominated Trump for Nobel Peace Prize on US request: Asahi

 Justice Clarence Thomas is not a conservative justice but a deeply reactionary one. Like Trump, he wants to make it easier to public figures to sue for libel, creating a dampening effect on political criticism and furthering speech suppression which has been Trump's lifelong goal. Justice Clarence Thomas calls for reconsideration of landmark libel case The general idea supported by Trump is to use the libel suits to squash criticism by subjecting those whose speech is disliked by an authoritarian like Trump to ruinous litigation costs. Donald J. Trump Is A Libel Bully But Also A Libel Loser

 Trump Asked Matthew Whitaker To Meddle In Michael Cohen Probe: NYT;  Trump denies asking former acting AG about hush-money investigation - CBS News Trump reportedly wanted Whitaker to replace the career prosecutors in the SDNY investigations with a Trump loyalist. 

 ‘Enjoy your life’: Trump puts new attorney general in an awkward position from the start (Trump has once again unleashed a flurry of tweets attacking the FBI and the Justice Department) The latest salvo appears to have been generated by Andrew McCabe's book and his TV appearances, particularly the one on 60 minutes.  McCabe: 'I think it's possible' Trump is a Russian asset - CNN; Read the Transcript of Ex-FBI Deputy McCabe's 60 Minutes Interview | Time

 This WP article documents the "Trumpworld's" outreach to Russia: What we’ve learned about Trumpworld outreach to Russia - Washington Post Trumpworld includes people who were not directly employed by the Trump campaign. 

 Trump 'fear-mongering' fuels rise of U.S. hate groups to record: watchdog | Reuters

 Yes Roger, this was stupid but consistent nonetheless: Roger Stone will testify to explain crosshair next to Judge's picture in Instagram post


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1. Exchanged a Leverage Bond CEF for a Less Leveraged Stock CEF With a Higher Yield: 

 A. Bought 100 RMT at $8.50-Used Commission Free Trade: 

Quote: Royce Micro-Cap Trust Inc. (RMT)

 Closing Price Last Friday: RMT $8.79 +$0.08 +0.92% 

 Sponsor's Page: Royce Micro-Cap Trust (RMT)

 RMT Royce Micro Cap Trust CEF-Morningstar

 When foreign economies start to look dicey, and the U.S. economy is still in an expansion cycle, U.S. micro caps are an option since those companies are generally dependent on the U.S. economy. I am not in a buying mood which explains the nominal purchase compared to past positions which have at times been over 500 shares. 

 There are a micro cap ETF:  iShares Micro-Cap ETF | IWC (non-leveraged with an expense ratio of .6%) The dividend yield for that ETF will be substantially below RMT. The ten year annual average return through 2/12/19 was 14.08%, which is about 1% lower than the leveraged RMT on an annual basis. iShares Micro-Cap ETF (IWC) Total Returns That 1% adds up over time. 

 RMT Leverage: Fluctuates, last reported at 9.71% (6/30/18)

 If RMT was leveraged say at 30%, which is common for leveraged bond CEFs, then I would view IWC as less risky than RMT and possibly better for those more sensitive to what a highly leveraged portfolio will do when things go south. 

 I did own prior to 2008 the Rice Hall James Micro Cap Fund (RHJSX), one of the many stock mutual fund positions eliminated in late 2006 and in 2007. The ten year average annual total return was 15.65% through 2/12/19. That fund is available on an NTF basis from several brokerage funds including Fidelity and Schwab which allows an initial investment of $100 or more with subsequent buys at $1 or more. 

 RMT Dividends: Managed Distribution Policy 

Capital gains, if any, are generally paid in the 4th quarter.  

 Data Date of Purchase (2/12/19): 

 Net Asset Value Per Share = $10.91
Market Price: $8.49
Discount: -10.91
Historical Average Discounts: 
1 Yr  -8.99%
3 Yr -11.93%
5 Yr -12.05%  
Sourced: RMT Royce Micro Cap Trust-CEF Connect

 SEC Filings: RMT

 Shareholder Report for the Period Ending 6/30/18 
Sec Form N-Q Holdings as of 9/30/18 

 Historical Performance Numbers: 

Compared to the S & P 500, this CEF will be more volatile and will have periods where RMT significantly outperforms and underperforms SPX. During a recession, I would anticipate that RMT would go down more. 

 The one year total return through 2/12/19 was .3%, but the average annual total return was 20.93%. Royce Micro Cap Trust (RMT) Total Returns The total returns were less stellar over the past five years at an annual average rate of 6.14%, but that number was at 14.84% over the past ten years.  

 RMT Realized Net Gains to Date = $2,461.36 + dividends

 Trading History: I have been trading this CEF for more than 10 years.   

 The largest gain was in 2014 at $2,269.61: 

The last two sell transaction were discussed in these posts: Item # 3.A. Sold 274+ RMT at $8.9 (8/3/17 Post); Item 3.A. Sold 276+ RMT at $8.4 (5/17/17 Post)

 B. Sold 50 out 100+ BTZ at $12.05-Used Commission Free Trade: 

 Quote: BlackRock Credit Allocation Income Trust (BTZ)

Position Before Pare: Average Cost Per Share = $11.41

Position After Pare: Average Cost Per Share = $11.24 

Profit Snapshot: 

 Item # 1.C. Bought 50 BTZ at $11.58 (12/9/18 Post)

 Data Date of Trade (2/12/19)
Net Asset Value Per Share: $13.83
Market Price: $12.03
Discount: -13.02%

 Sourced: BTZ BlackRock Credit Alloc Income-CEF Connect

 Last Elimination: Sold 103+ at $13.4+ Roth IRA (5/8/17 Post)(snapshots of trading profit since 2010 then at $870.93)

 Last Substantive Discussion: Item # 5.A. Added 20 BTZ at $11.35 and 30 at $11.16- Used Commission Free Trades (1/16/19 Post) I have nothing to add to that discussion.

2. Short Term Bond/CD Ladder Basket Strategy: 

A. Bought 1 J.P. Morgan 2.295% SU Maturing on 8/15/21: 

FINRA Page: Bond Detail (prospectus not linked)



Credit Ratings: 


Bought at a Total Cost of 98.367
YTM at TC Then at 2.975%
Current Yield at TC = 2.3331%

 I have traded JPM bonds, including this one, in the recent past:
1 JPM 2.295% SU +$8.64 (sold 11/29/17)
Item # 2.C. Bought 1 JPM 2.295% (2/4/17 Post)
Item #4.A. Sold 1 JPM at 99.306 (12/26/17 Post)(YTM then at 2.492%)

 Other JPM bonds traded in 2017:





B. Bought 2 Eversource Energy 2.5% SU Maturing on 3/15/21: 
I now own 4 bonds. 

 Finra Page: Bond  Detail (prospectus not linked)

 Prospectus 

 Issuer: Eversource Energy (ES) 
ES Analyst Estimates 
Eversource SEC Filings 
10-Q for the Q/E 9/30/18 

 Last Bond Offering Prospectus (12/18)

 Credit Ratings: 

Fitch Rates Eversource Energy's Senior Notes at BBB+ (12/10/18)

 Bought at a Total Cost of 98.938
YTM at TC then at 3.027%
Current Yield at TC = 2.5268%

 The previous two bond purchase was made in March 2017. 

 C. Bought 1 Treasury 1.25% Coupon Maturing on 10/31/19:
YTM = 2.49%
I now own 2. 

 D. Sold 1 of 3 McDonalds 2.65% SU Maturing on 1/15/22: 

Profit Snapshot: +6.3 

FINRA Page: Bond Detail

 I now own 2 and plan to keep them until the maturity date. This sell is what I would label a nip and tuck on duration exposure. As a result of the bond rally and the flattening yield curve, I am exchanging some 2022 or later maturities for shorter term bonds. I do not receive much, if any, compensation for going out further in time, and those longer maturities carry more interest rate risk.  

 The herd consensus is that rates will fall or remain stable near current levels. That opinion is being reinforced by recent statements made by Powell and the FED in its monetary policy announcements. 

 The consensus opinion about the future may prove to be right. 

 If that is the case, I do not lose much by shortening my average duration unless there is a meaningful decline in rates when the short term bonds mature. 

 I am also selectively moving further out in some cases where I sell a 2021 or 2022 maturity and buy a 2026 maturity that provides around a 1.25% higher current yield. 

 I am increasing my cash flow by raising my current yield. That is mostly due to redeploying proceeds from maturing securities that were bought over a year ago when rates were lower. 

 I have become more active selling existing bond positions while keeping my overall bond exposure about the same. 

 E. $5K in Optional Early Redemption Proceeds: 

 I will be credited on Monday with $5K in bond proceeds received through the issuers' early redemption. Fidelity notes proceeds that will be received on a Monday on Saturday. 


I had just bought the Abbott 2.8% SU bond maturing on 9/15/20 a few days before the issuer announced that it would redeem that bond early. 
Abbott did pay an additional $1.13 per bond as a make whole payment. 

 So I made $12.26 on the two bonds plus a net interest payment of $6.06 ($24.73 in interest paid by ABT with the redemption proceeds minus the the $18.67 in accrued interest paid to the seller when I purchased the bonds)

 The Southern bonds were redeemed early without a make whole payment. While the prospectus did contain a make whole provision, the short period to maturity and a discount rate in excess of the coupon resulted in no additional premium to par value for the early redemption. 

 I do not view optional redemptions now as a plus given the decline in interest rates over the past several weeks. I would prefer to have kept both the Southern and Abbott bonds to their respective maturity dates.   

3. Bought 100 TRPPRH at C$13 (C$1 IB Commission):

Quote: TransCanada Corp. Cumulative Series 4 Stock (Canada: Toronto)

 Raymond James and CIBC issue periodic reports on Canadian preferred stocks. Of those two, the CIBC reports are more comprehensive: March 2018 CIBC Report

 The report from Raymond James is more recent: January 2019.pdf

 See also: PrefBlog (focused on Canadian preferred shares)

 This is a play on the herd potentially being wrong about the future course of short term rates. 

 This Canadian reset equity preferred stock pays quarterly dividends at a  1.28% spread to the 3 month Canadian treasury bill.  

 See Insert Near Bottom (series 4): 

Issuer: TransCanada Corp.

 Canada 3 Month Treasury Bill

 As with other resets that float over the 3 month Canadian government bill, there is an option to convert the shares into another series. The other series pays the same spread, except the spread is over the five year Canadian treasury note and remains in effect for five years after the reset date.

 Credit Ratings:  DBRS rates the preferred at Pfd-2L which is equivalent to a S & P rating of BBB-. S & P lowered the preferred shares to that same level last year: TRP Downgraded to P-2(low) by S&P « PrefBlog At the current time, this 100 share lot is my only exposure to TRP securities.

 Par Value: C$25 

 Since this security was bought at a deep discount to its $25 par value, the expectation built into the price is for a continuation of low short term rates for a long time. 

 There is no expectation in the C$13 price that there will be a prolonged period of rising inflation and inflation expectations that would cause the Bank of Canada and other central banks to raise their benchmark rates substantially. The expectation expressed in the price is that short term rates are near their peak levels and will remain stable at best or trend down. 

 Last Round-Trip 100 Shares: +$C393.

Item # 5.B. Sold 100 TRPPRH at C$14.2 (5/17/17 Post)

 Purchase Discussion: Item # 2. Bought 100 TRPPRH at C$10.25-Update For Exchange Traded Bond And Preferred Stock Basket Strategy As Of 5/26/2016 - South Gent | Seeking Alpha

 All Canadian preferred stock purchases have been and will continue to be made in my IB account. 

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, February 20, 2019

Observations and Sample of Recent Trades: ENB, GMREPRA, MNRPRC, TANNL, TDIV

Economy: 

On a non-seasonally adjusted basis, CPI was up 1.6% over the 12 month period ending in January 2019. Core CPI rose 2.2%.
A significant decline in energy costs lowered CPI below core CPI. One of the quirky items is health insurance costs. The Y-O-Y increase was reported at 6.5%. Table 2. Consumer Price Index for All Urban Consumers (CPI-U): U. S. city average, by detailed expenditure category


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Japan's economy bounces back in Q4 - MarketWatch (1.4% growth annualized compared to -2.6% in the prior quarter)


A big change in accounting puts $3 trillion on corporate books

 New York Mayor de Blasio Rips Amazon's 'Abuse' of Power - TheStreet There is a strong tendency among many democrats to kill the goose that lays the golden egg.  

 I never understood why Amazon would want to establish a NYC headquarters. Nashville, one of the contenders, has a far lower cost of living, no state income taxes, and a more welcoming attitude to businesses. Berkshire’s Charlie Munger has a very blunt response to those ‘driving rich people away’ as Amazon scraps HQ2 - MarketWatch 

 There are states and cities in the U.S. who are driving people and businesses away, leaving fewer businesses to finance their spending, public employee pensions, and debt service obligations. Their taxes will continue to rise, driving even more away to less costly areas, primarily growing metropolitan areas in the south. I have been noting for years the migration of businesses and individuals to middle Tennessee from high tax, nanny states with an abundance of regulations. That trend will accelerate rather than diminish in the coming years.  

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Trump:

 Intimidation, Pressure and Humiliation: Inside Trump’s Two-Year War on the Investigations Encircling Him - The New York Times (a comprehensive report); republished at MSN:Intimidation, Pressure and Humiliation: Inside Trump’s Two-Year War on the Investigations Encircling Him  

This Trump performance is why people talk about the 25th Amendment - The Washington Post; You won't believe what Trump just said: 6 eye-popping moments (Trump's admiration for authoritarian leaders is boundless as is his contempt for western democracies and the institutions necessary to support them)

 In three successive tweets, Donald stated that he has a 52% approval rating, the press is the enemy of the people, and that NBC needs to be investigated by the FEDs for airing a satirical skit on SNL that made fun of him: 
Satirical comedy uses exaggeration and works best when it exposes the truth more clearly through comedy. Before Trump, other Presidents took the satirical skits in stride. 

 Trump did not like the cold opening where Alex Baldwin, as Trump, performed a satirical version of Trump's national emergency declaration. The skit was spot on. SNL’s Trump emergency declaration vs. the real thing - YouTube

 At Don the Con's recent El Paso rally, the Trumpsters cheered when Don Jr. called teachers a bunch of losers who try to indoctrinate children "on socialism since birth".  Why Donald Trump Jr.’s ‘loser teachers’ comment was ‘a chilling moment’ for educators around the world Perhaps one of those losers could educate Don Jr. on what the word "socialism" means. Though, admittedly, it is too late to educate any Trump or the Trumpsters in general on anything.  

 How Popular Is Donald Trump? | FiveThirtyEight

 85% of republicans approve of Donald's national emergency declaration. Trump’s national emergency declaration unpopular among majority of Americans | PBS NewsHour 

 It is not possible to be a true conservative and approve of that declaration. 

 That poll is useful in that identifies the percentage of republicans who are not conservatives.  

 FactChecking Trump's National Emergency Remarks - FactCheck.org

 FactChecking Trump's El Paso Rally - FactCheck.org

 Trump stated that he had the "absolute right" to declare a national emergency. Spoken like the authoritarian that he is. 

Senator Graham (R-SC): More urgent for kids in Kentucky to have secure border than new school; Gun violence deaths in US in year after Parkland: 1000+ kids | McClatchy Washington Bureau

 For the most part, the self-described "conservative" GOP Senators have already made it clear that they will do nothing to stop Trump from usurping the constitutional powers of Congress, while expressing their usual weak-kneed "concerns". “I would have my doubts” (Sen. Ron Johnson) or “I’m not enthusiastic about it” (Sen. Pat Toomey) or “I have some concerns” (Sen. Roy Blunt), or even “I wish he wouldn’t have done it” (Sen. Chuck Grassley). 

 There is a recognition among GOP politicians that the republican base could care less about the constitutional restraints on a republican president's power and their efforts to undermine institutions necessary for a properly functioning democracy.   

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 More on My Ancestors:

 Another movie idea involves the trials, tribulations and successes of Beth Slater Whitson, my first cousin two times removed. Her father was a brother of my grandfather.

 Beth Slater (many Southerners have two first names) was born in the middle of nowhere Nunnelly, an unincorporated spot in rural Hickman County Tennessee. She would become the most well known person who was born in that county.

 When she was young, she decided to leave her home and go to Chicago. This is an excerpt from her autobiography written in 1925:
Beth Slater was probably the most prolific songwriters in early 20th century America. Perhaps her most well known song was "Let Me Call You Sweetheart". Though, I would not focus much on playing those old tunes in a movie other than a verse or two. Tastes in music have changed, to say the least.  

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1. Pares: 

 I am continuing to sell my highest cost lots into both the stock and bond rallies. 

 The purpose is primarily part of my capital preservation strategy that involves some exposure to risk assets. 

 By selling the highest cost lot, I incur less tax liability, reduce my average cost per share, and raise my dividend yield, while reducing my overall dollar exposure. 

 The dollars raised can then be redeployed at lower prices. 

 For those securities subject to the small ball purchase restriction, any subsequent purchase has to be at the lowest price in the chain. 

A. Pared GMREPRA - Sold 30 GMREPRA at $24.84: 

I sold the highest cost lot and kept the 70 share lot bought at $22.75. Item # 4.B. Bought 70 GMREPRA at $22.75 (1/13/19 Post) Just another example of small ball trading.  

 Dividend Yield at $22.75 =  8.24%


History: 


Profit: +$9.79




Par Value: $25

Dividends: Cumulative, Non-Qualified and Paid Quarterly  

 Last Ex Dividend Date:  1/14/19   (before sell) 

Issuer Optional Call: On or after 9/15/22 

 B. Pared ENB-Sold 15 ENB at $37.61-Used Fidelity Commission Free Trade: 

Quote: Enbridge Inc. (ENB)
Website: Home - Enbridge Inc.

 Closing Price Yesterday: ENB $36.29 +$0.47 +1.31% 

 I sold my two highest cost lots which reduced my average cost per share from $34.77 to $34.05. Since my first purchase in this chain, the stock has trended down until recently. 

 I have used the rally in stocks to sell my highest cost lots, a trading rule dictated by the small ball strategy.  

 Position After Pare: 

Profit: +$9.29

I noticed that UBS downgraded Enbridge to neutral from buy shortly after this sell. I do not have a copy of that report.

 Last  Buy Discussions: Item # 3 Bought 2 ENB at $29.95 and 2 at $30.89-Used Commission Free Trades (3/29/18 Post); Item # 2 Added 5 ENB at $32.28 2 at $31.92 and 2 at $31.45-Used Commission Free Trades (3/15/18 Post); Item # 2 Added 9 ENB at an Average Total Cost Per Share of  $32.18 (3/15/18 POST)

 Last Earnings Report: Q/E 12/30/18

 Enbridge Inc. Reports Strong Fourth Quarter and Full Year 2018 Results

 Discussed Briefly at  Enbridge quarterly profit beats estimates-Reuters

 Dividends: Quarterly and paid in USDs after conversion from Canadian Dollars. 

 Subject to a 15% Canadian withholding tax when held in a U.S. citizen's taxable account, but not in a retirement account. 

Penny Rate: Currently at C$.738 per share, raised from C$.671 per share in the 2018 4th quarter. Dividends and Common Shares - Enbridge Inc. 

The dividend yield will depend on the currency conversion rate. If I assumed a quarterly rate of $.738 and a conversion rate of .75, then the annual dividend would be about $2.21 and the dividend yield at a total cost per share of $34.05 would be about 6.5% without a tax adjustment. 

 I am generally able to recover all foreign dividend taxes as a credit on my tax return. 

 ENB qualifies for my definition of "bond substitute". Any return in excess of the dividend is viewed as gravy.  

 Dividend Reinvestment: Yes 

 Last Dividend Reinvestment Price: $33.4 

Last Ex Dividend Date: 2/14/19

 Purchase Restriction: Small Ball Rule (each purchase, other than through dividend reinvestment, has to be at the lowest price in the chain)

 Lowest Price Paid in Current Chain: $29.95 

 Maximum Position: 100 shares + shares purchased with dividends 

 Current Position: 46+ shares

 Last Sell Discussions: Item # 3 Sold 50 ENB at $39.03 (12/21/17 Post); Sold 10 ENB at $40.14

 ENB Preferred Stocks: 

 I have bought and sold ENB's reset equity preferred stocks on the Toronto exchange but do not currently have a position. The largest gain was on a 300 and 200 share lot of ENB.PRP

+C$963
+US$1,458.25 (converted by Fidelity from CAD purchase and sell numbers)
Enbridge Inc. 4% Pfd. Series P (Canada: Toronto) This was reset in January 2019: Enbridge Provides Notice of Series P Preferred Shares Conversion Right and Announces Reset Dividend Rates

 The other one that I have bought and sold is ENB.PRF: 



Enbridge Inc. Cumulative Preferred Series F Stock (Canada: Toronto)(reset 6/1/2018 to a quarterly rate of C$.29306 per share) 

 I have started to look again at Canadian reset equity preferred stocks due to their price declines. Part of the problem is that many have recently or will soon reset at disappointing rates or lower than anticipated by those who bought at higher prices. 

 For the 5 year resets that are based on a spread to the 5 year Canadian government bond, there is a conversion into another security that floats at the same spread but the float is over the 3 month Canadian treasury bill. Those floaters will then trade separately and have a right to convert back to the 5 year bond spread on the next reset date. There is a lot to consider and the decisions have to based in part on future interest rate forecasts through the next reset date.   

 The resets require a lot of effort which is focused on comparing the terms of a large number of them. ENB has a large number of different ones outstanding, for example. Preferred Shares and Hybrid Securities-Enbridge But another pipeline, Pembina or TransCanada, may have ones that provide the better option at a particular moment in time.   

 C. Pared TDIV-Sold 15 TDIV at $36.48-Commission Free for Vanguard Customers: 

I sold my two highest cost lots. 

Quote: First Trust ETF VI NASDAQ Technology Dividend Index Fund (TDIV)

 Closing Price Yesterday: TDIV $37.00 +$0.05 +0.14% 

Sponsor's Page: First Trust NASDAQ Technology Dividend Index Fund (TDIV)

 Holdings

 Profit Snapshot: $13.45

Purchase Restriction: Small Ball Rule 

 Maximum Position: 100 Shares

 Current Position: 15 shares (I am admittedly at a low ebb in my risk taking)

 I would pick up the dollar amount of my purchases at below $30. 

 Lowest Price Paid in the Current Chain: $32.3 

Item # 5.B. (12/23/18 Post) 

 Dividends: Quarterly at a variable rate

Distribution History

 Last Ex Dividend Date: 12/18/18 at $.312 per share 

 2018 Dividends Per Share = $.9834

Last Sell Discussions: Items # 3.A. and 3.B. Eliminated TDIV Sold 50 at $36.56 and Sold 50+ at 36 (2/26/18 Post)(profit snapshots =$462.81); Item 2 Sold 50 TDIV at $37.07 (1/25/18 Post)(profit snapshot = $270.61); Item # 5 (4/29/17 Post)(snapshots of prior trades +$683.57)

Trading Profits to Date: $1,430.44 ($1,416.99 in prior trades)

 The lowest prices paid for this ETF occurred in 2012, soon after its IPO. 

 Item # 3 Added 50 TDIV at $19.2 (10/15/12 Post) 

 Item # 1 Bought 50 TDIV at $19.94-ROTH IRA (10/3/12 Post) 

 Item # 1 Bought 50 TDIV at $19.95 (8/12/12 Post) 

 D. Pared MNRPRC-Sold 50 MNRPRC at $24.57: 

Quote: Monmouth Real Estate Investment Corp. 6.125% Cumulative Preferred. Series C Stock; MNR.PC Stock Chart

 Closing Price Yesterday: MNR-PC $24.01 0.11 0.46% 

 Category: Advantages and Disadvantages of Equity REIT Cumulative Equity Preferred Stocks

 Monmouth Real Estate Investment Corp | 6.125% Series C Cumulative Redeemable Preferred Stock (MNR.PRC) Information Page | Preferred Stock Channel

 Strategy: Equity REIT Common and Preferred Stock Basket Strategy

 I kept the lower cost shares that I recently bought at $23.12. Item # 3.B. Bought 50 MNRPRC at $23.12 (12/16/18 Post) 

 Yield at $23.12 = 6.62%

 Profit Snapshot: +$23.75

Item # 3.B. Bought 50 MNRPRC at $24 (7/12/18 Post)

 Security Description: 

 Issuer: Monmouth Real Estate Investment Corp. Cl A (MNR)
MNR SEC Filings
MNRPRC Prospectus
Par Value: $25
Dividends: Quarterly, Cumulative and Non-Qualified
Stopper Clause: Yes
Issuer Optional Redemption: At par value on or after 9/15/21

 Previous Round-Trip: Item 5.A. Sold 100 MNRPRC at $24.85 (1/21/17 Post)(profit snapshot = $71.93).

 2. Eliminations:

 A. Sold 30 TANNL at $25.36:

 2 Year History Schwab Account:

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

 Closing Price Yesterday: TANNL $24.89 -$0.09 -0.36% 

 Category: Exchange Traded Baby Bonds

 Issuer: TravelCenters of America LLC (TA)

 TA Analyst Estimates

TA SEC Filings

Prospectus

 Profit Snapshot: +$36.35

Item # 1.A. Bought 30 TANNL at $23.99-Used Commission Free Trade (8/15/18 Post)

 I view this senior unsecured bond to be high risk. In the past, the bottom has fallen out with the price spiraling down.

 One recent purchase was during one of those events. Item # 5 Bought 30 TANNZ at $17.25 (9/3/17 Post) That is another TA exchange traded bond: TravelCenters of America LLC 8% Senior Notes due 10/15/30 (TANNZ)

 I will tread lightly in TravelCenter bonds and will generally be looking for an exit point soon after buying a few shares. I view those bonds to be a short term rental rather than a buy and hold. 

 The exchange trade TravelCenter bonds are not rated but would be in junk territory IMO if rated. 

 List of Trades in TANNL (formerly traded under the TANO symbol):

 Item # 4.B. Sold Remaining TANNL at $25.46 (4/14/17 Post)(profit $11.57); Item # 5. Sold 50 TANO in Roth IRA: Update For Exchange Traded Bond And Preferred Stock Basket Strategy As Of 3/28/16 - South Gent | Seeking Alpha (profit snapshot=+$55.47)- Item # 2. Bought 50 TANO at $23.2-ROTH IRA: Update For Exchange Traded Bond And Preferred Stock Basket As Of 12/18/15 - South Gent | Seeking Alpha; Item # 4.A Stocks, Bonds & Politics: Observations and Sample of Recent Trades: 3/1/17-Item # 2. Added 50 TANO at $24: Update For Exchange Traded Bonds And Preferred Stock Basket Strategy As Of 2/3/16 - South Gent | Seeking Alpha

 I seriously doubt that I would own this bond for long when the price goes over the $25 par value.

 3. Short Term Bond/CD Ladder Basket Strategy:

 A. Bought 3 Treasury Bills Maturing on 7/5/19 (secondary market purchase): 
YTM = 2.436%

This security is a 6 month treasury bill originally auctioned on 12/31/18 at 98.726625: Treasury Auction Results.pdf

 B. Bought 1 Wells Fargo 2.15% SU Maturing on 1/30/20: 

FINRA Page Bond Detail (prospectus linked)

 I now own 3 bonds. 

 Bought at a Total Cost of 99.455
YTM at TC Then at 2.725%
Current Yield at TC = 2.1618%

 For higher quality short term bond maturing within 18 months of purchase, I am not influenced by the current yield number but only by the yield-to-maturity. This bond has just one more semi-annual interest payment before paying its last payment along with the principal amount next January. 

 The spread to the 1 year treasury was about 25 basis points for a lot equal to or greater than $25K and about 28 basis points for a 1 bond secondary market purchase. 

 Many investors would prefer to go with the treasury, given the small yield difference and the state income tax issue. I look at it as having some minor importance only on a total bond portfolio basis, where a .25% added yield does amount to more than small change (somewhere in the $3K to $4K range annually). In addition, I am not personally concerned about the credit risk; and the state tax issue is not relevant for me.   

 I am buying more short term treasuries now than comparable maturity investment grade corporate bonds based on the spread differential narrowing.  
C. Bought 3 Treasury Bills Maturing on 1/2/20: 
YTM = 2.532%



This bond was a 52 week treasury bill auctioned on 12/31/18 at 97.426722: Treasury Auction Results.pdf

 As a treasury bill, it was sold without a coupon. Interest consists of the difference between the purchase price and par value or $66.36 for this purchase.

 The bill had a slightly higher YTM than the bill maturing in January 2019 that had coupons. It was also purchased from Schwab's inventory which generally has a slightly better yield than those available from other sellers.    

 D. Sold 1 Wells Fargo 2.5% SU Maturing on 3/4/21: 

Profit Snapshot: +$9.21

This bond was purchased on 5/14/18 at a total cost of 97.899. 

 I in effect exchanged this bond for the 1 WFC bond maturing on 1/30/20 that has a slightly lower YTM, but matures 13 months sooner, as described in Item 3.B. above. As the 1/30/20 bond near maturity, I may buy back this bond, in effect, rolling the proceeds into the bond that I sold.   

 Finra Page: Bond Detail

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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