This revisit updates my initial look at CYS Investments (NYSE:CYS) May 3, 2016 article,"CYS Investments: A View From The Perspective Of A Preferred Investor."
Although it is my hope that you will read the entire article, for which I have provided the link above, my bottom line assessment at the time was as follows:
My bottom line decision most often is to look at charts of the past few years' performance of the company's common shares, coupled with whether or not said company is, over time, prospering or losing market value. Ultimately, I have to decide how safe this company is from an existential standpoint rather than how well its share price will perform over the next quarter or the following year. My bottom line is whether or not I believe in the long-term survivability of CYS, which I do.
At the time I rated CYS preferreds a buy, but not so for its commons. I have provided a screenshot of CYS' preferreds as they were priced on 5/3/16:
Let's take a look at the current pricing of both preferreds and the three month chart of its commons. As I write, 8/4/16, the CYS preferreds are priced as shown below:
*The B is the best because the upside at call is superior, especially as compared to the paltry .02% difference in the yield.
So far so good, although the preferred pricing is basically the same, the holders would have scored a nice quarterly dividend of .484375 per A share, and .46875 per B share.
Now let's review the commons:
Here I was wrong. According to the above Yahoo three month interactive chart, CYS moved up from $8.12 on 5/5/16 to its present $9.09, a significant price jump. Also, during this time it paid a 0.25 dividend on 6/20/16. Although both the preferreds and commons were profitable investments, the commons were more profitable.
Now for a little forward guidance:
According the Finviz summary of CYS' financial highlights: This company valued at $1.36 billion has earned $133.90 million on 326.10 million in sales and is up a nice 33.19% for the year. In my opinion, this company is built to last, and I would have no problem considering making an investment in its preferreds at this time. As priced above the B Series is currently best, but this is subject to change moment to moment and should be carefully monitored prior to placing your bid.
As for the commons, you know my feelings and they remain unchanged. I am not a sophisticated enough investor to feel comfortable prognosticating whether or not they will move up or down from here; consequently, I don't invest in commons.
For those of you inclined to follow up on my past reviews, I list them below and provide the links to each review.
- Navios Maritime Holdings (NYSE:NM)
- Costamare (NYSE:CMRE)
- Global Ship Lease (NYSE:GSL) and Safe Bulkers (NYSE:SB)
- Gastar Exploration (NYSEMKT:GST)
- Peregrine Pharmaceuticals (NASDAQ:PPHM)
- Ashford Hospitality (NYSE:AHT)
- NorthStar Realty Finance (NYSE:NRF)
- Adcare Health Systems (NYSEMKT:ADK)
- Five Oaks Investment Corp. (NYSE:OAKS)
- Seaspan (NYSE:SSW)
- Kinder Morgan (NYSE:KMI)
Disclosure: I am/we are long GST-A, NRF-B, AHT-E, CMRE-C, CMRE-D, NM-G, NM-H, PPHMP, SB-D.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.