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Doug K. Le Du

 
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  • Apartment Investment And Management Co. Preferred Stock, Opportunities And Risks [View article]
    Thanks for your subscription to my CDx3 Notification Service John. I'm glad to hear that it is working well for you. And thanks for taking the time to post as well.
    Sep 5 11:08 AM | Likes Like |Link to Comment
  • Apartment Investment And Management Co. Preferred Stock, Opportunities And Risks [View article]
    Just go to the following link for a feature list:

    http://bit.ly/1mUvTa7

    You'll see that we have two subscription programs, one more comprehensive than the other. Click the "Continue" button at the top for the comprehensive CDx3 Notification Service (includes email alerts and newsletter).

    Thanks for asking!
    Aug 18 01:19 PM | Likes Like |Link to Comment
  • Apartment Investment And Management Co. Preferred Stock, Opportunities And Risks [View article]
    Your point is equally true of any investment. During a period of low prices/high rates, preferred stock investors would normally be buying more dividend-paying shares, realizing increasing dividend income for lower prices.

    But if personal circumstances arise such that the investor has to sell when they would otherwise be buying, the results are less likely to be favorable.

    Preferred stock investing is long-term investing, taking advantage of the known inverse relationship between rates and prices over time.

    Your point is a good one, and one that bears repeating: investing is no place for next week's lunch money. Thanks for taking the time to post.
    Aug 18 12:20 PM | 1 Like Like |Link to Comment
  • Apartment Investment And Management Co. Preferred Stock, Opportunities And Risks [View article]
    You raise a good point John. My guess is that most currently unrated preferreds from property REITs would rate well above CCC. Thanks for posting.
    Aug 18 12:11 PM | Likes Like |Link to Comment
  • Preferred Stock Buyers: Time To Change Tactics For Sub-$25 Purchases [View article]
    Whether or not you are getting too speculative is a judgement that only you can make. But many REIT preferreds and energy sector preferreds are unrated while coming from good companies. If one is willing to perform the due diligence involved, the field of acceptable choices gets larger.

    Thanks for your post.
    Jul 15 11:39 AM | 1 Like Like |Link to Comment
  • Preferred Stock Buyers: Time To Change Tactics For Sub-$25 Purchases [View article]
    Congrats on the great prices. Another approach may be to open an online trading account with a brokerage that has more comprehensive OTC market maker coverage. Whether doing so is worthwhile would be a personal choice.

    Glad to hear you are happy with your purchases! Thanks for posting.
    Jul 14 07:41 PM | Likes Like |Link to Comment
  • Preferred Stock Buyers: Time To Change Tactics For Sub-$25 Purchases [View article]
    I like your approach. You are balancing the risk associated with exposing yourself to a cap loss in the event of a downstream call (by paying over par) with increasing your dividend income in the meantime for a period of time that will cover that cap loss (if it occurs).

    By moving your price point a bit above par, you can increase the number of choices available to pick from as well. Increasing the number of choices available to pick from is the primary benefit of paying above par.

    While the trade-offs you are making may not be for everyone, I am glad to hear that they are working well for you.

    Thanks for posting.
    Jul 14 06:39 PM | Likes Like |Link to Comment
  • Preferred Stock Buyers: Time To Change Tactics For Sub-$25 Purchases [View article]
    I work with the folks at QOL and provide some data to their site regularly so your post puts me in a bit of an awkward position.

    But for completeness, the notation you mention was posted to QOL's website in 2005.
    Jul 14 03:44 PM | 1 Like Like |Link to Comment
  • Preferred Stock Buyers: Time To Change Tactics For Sub-$25 Purchases [View article]
    Making investing recommendations to someone whose personal goals, resources and risk tolerance are unknown is not possible (which is why doing so is illegal in the U.S.).

    What I do recommend is that preferred stock buyers start paying attention to OTC distribution and the wholesale prices that are generally available there, since we are in a period of increasing prices for fixed-return securities.

    Thanks for posting.
    Jul 14 02:23 PM | Likes Like |Link to Comment
  • Preferred Stock Buyers: Time To Change Tactics For Sub-$25 Purchases [View article]
    The process of creating a new preferred stock can take anywhere from a few days to a few weeks, but generally lasts about 2 weeks. The delay is usually caused by those in charge of creating the new permanent symbol but the underwriters influence the timing as well.

    In either case, wholesale OTC trading usually happens fairly quickly (days or a couple of weeks, but not months). It is for this reason that email alerts are really the only way to take advantage of this mechanism.

    As mentioned earlier, this is one of the many reasons that I started the CDx3 Notification Service in 2006:

    http://bit.ly/SrRbNO

    Subscribers receive email alerts whenever a new preferred stock starts trading, including those that do so on the OTC with temporary OTC trading symbols. Subscribers receive a second email alert when the shares are transferred to the retail exchange (usually the NYSE) and the permanent symbol is assigned. You can see an example of the email alert here (click the "See Example eMail Alert" link in the lower-right):

    http://bit.ly/139qqUd

    Thanks for posting.
    Jul 14 02:19 PM | Likes Like |Link to Comment
  • Preferred Stock Buyers: Time To Change Tactics For Sub-$25 Purchases [View article]
    And thank you for taking the time to craft your thoughtful note.
    Jul 14 02:00 PM | Likes Like |Link to Comment
  • Preferred Stock Buyers: Time To Change Tactics For Sub-$25 Purchases [View article]
    I see your point. Your want temp OTC symbol notification from your broker's system. I do not know of a brokerage system that does this.

    As self-serving as it sounds, the only service that I know of that provides email alerts with temp OTC symbols when new preferreds start trading on the OTC is my CDx3 Notification Service.

    http://bit.ly/SrRbNO

    You can find a list of OTC symbols on other sites, but as I described earlier, having a list is unhelpful (unless you intend on checking the list for updates every day as new preferreds come out).

    Thanks again.
    Jul 14 01:58 PM | 1 Like Like |Link to Comment
  • Preferred Stock Buyers: Time To Change Tactics For Sub-$25 Purchases [View article]
    As mentioned in the article, some brokerage systems are more robust on OTC preferred stock access than others. It usually comes down to how many of the dozen or so 'market makers' your broker has contracts with that provide OTC trades for newly issued preferred stocks.

    One of the most popular features of the CDx3 Notification Service website is our online discussion forum (this is the largest group of preferred stock investors anywhere and includes representatives from all of the major brokerages and many of the smaller ones, certified financial planners, etc.). There have been several discussions about brokerage systems and OTC trading over the years. Fidelity is undoubtedly the weakest while TDAmeritrade and E*Trade are consistently rated as much stronger at OTC trading.

    You were right to ask Fidelity how well their system is able to do this.

    Thanks for posting.
    Jul 14 01:25 PM | Likes Like |Link to Comment
  • Preferred Stock Buyers: Time To Change Tactics For Sub-$25 Purchases [View article]
    As I mentioned in one of my earlier replies, the trick is to subscribe to a website that not only provides OTC symbols during wholesale distribution, but notifies you via email alert when it is happening (otherwise, you would have to check the site several times per day).

    This is one of the many reasons that I started the CDx3 Notification Service for preferred stock investors in 2006. See features, examples and pricing here:

    http://bit.ly/SrRbNO

    Thanks for posting.
    Jul 14 01:00 PM | 1 Like Like |Link to Comment
  • Preferred Stock Buyers: Time To Change Tactics For Sub-$25 Purchases [View article]
    Great to hear MB. Glad it has worked well for you. Thanks for posting.
    Jul 14 12:30 PM | Likes Like |Link to Comment
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