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I'm writing an instablog - I know of a few people who have read some, but the main reason for writing it is to clarify my thinking (and likely confuse you) before I invest in something every month or so. And also to act as a journal I can review every so often. I work as a mental health nurse.... More
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  • Out Of The Sun 0 comments
    Feb 9, 2014 3:36 PM | about stocks: TPZ, TTP, BWG, BBF

    Debating whether or not to go for a supervisor's position. Bosses seemed uneasy with my sense of humor. I don't blame them. One of them seemed sympathetic when I mentioned that I had applied at MacDonalds' and had been turned down. I informed her that that was a joke.

    Could I discipline myself to keep from making sarcastic and black humor comments that no one gets? I don't know. I do know that I google-searched horrible photo-shopped Valentine's day cards and printed many out that didn't include profanity and decorated my unit's staff lounge on Friday. The unit secretary told me while on one trip to the lounge that it was the first time she'd seen me smile! I was either getting it out of my system one last time, or I am really unfit for the job.

    I may very well go through with applying for it just to see how uncomfortable it makes my supervisors feel...

    Anywho,

    I had a new monthly preferred that I've been watching (ARCPP), but it's gone up past my 8% yield minimum cutoff. Here's an article that alerted me to it in the first place for anyone who might be interested:

    seekingalpha.com/article/1958501-america...-monthly

    Which should give plenty of info to research it yourself for anyone who's interested.

    If, by the end of the week, it falls back to where it's yielding 8%, I may pick it up (possible as it pays in the middle of the month, not the last day).

    I own a fair number of preferreds below par that I'm already interested in. My Puerto Rican bank preferreds have been getting slammed (OFG) (BPOP). The other ones appear to be making a comeback.

    So. Probably going to be a cef this paycheck.

    Already own plenty of covered call ones. Own a fair amount of a convertible one. Own a couple of mixed ones. I don't want to buy into a preferred fund as I think I've got that down. So where to?

    There aren't as many cefs in reits trading that meet my screen as a month ago. Even munis are going up compared to six months ago. So I'm thinking that I'm going to have to relax my screens this time for yield or performance.

    (BWG) - Ouch. Only started up in 2012 and the nav went up and now it's back to where it started. Currently at a 14% discount and close to a 9% market yield. It's listed as a global fund, but you might notice that most of its holdings are emerging market debts. Comparing this to other funds I examined today, I like that I don't see Venezuela govt bonds as a primary holding. Turkey also seems limited. Does have Portugal, but they don't seem to be inclined to have a civil war or coup (friend of mine has been quite correct on a number of global issues over the years - he does help draw up rules-of-engagement - he also visited Turkey on a cruise this year and told me that you could tell people were ready to overthrow Erodogen - I'm inclined to trust his judgment - and note that I don't know much about Turkey one way or the other, I just like to avoid investing in places that might end up resembling Detroit).

    Another reason I'm looking at this one is that they raised their distribution last year. And the brief look I've taken is that the eps is greater than the current distribution.

    (BBF) - muni fund - 9% discount and 6.7% distribution is pretty good. Again, eps is greater than distributions (by a tiny amount) which I want to see in a bond fund. No ROC is good. More Illinois in the top holdings than I would like, but at least it's not Michigan.

    And the two funds I'm reallllly interested in:

    (TPZ) - owned it a couple of years ago, and if had not sold and dripped I would have been very happy. Anywho, currently at a 10.5% discount. Yield is only 5.8%. The NAV when they started in 2009 was 19 and is currently 28.4. And the distribution hasn't changed since it started. Monthly pay. Mix of mlps and energy bonds. No k1 form. NAV flatlined over the last year, so that may be the reason it's dropped to a big discount. Or because it holds a fair amount of fixed income. Monthly pay.

    I looked at every Tortoise fund today and this is the only one that has not raised its distribution in the last year. Stays at about this discount, I'm going to buy.

    (TTP) - another Tortoise fund! Lots of pipeline companies! Close to a 13% discount. 5.8% yield again. Quarterly pay, but the ex-date should be after I get my paycheck this Friday. Unlike TPZ, the NAV went up for the year. More mlps, not so much in the way of fixed income. And I am giving serious thought to this one as the market price is going down and the NAV is going up.

    As you can see, I like Tortoise funds. Every one of them I've looked at has a low distribution, but has had their nav go up since inception and you've got to collect/reinvest that yield along the way. These two are the only ones trading at double digit discounts. If things stay this way by payday, it will be one or the other. And it will give me exposure to energy companies of some type which should also make a nice inflation hedge.

    Now I will have to ask myself if the 8% yield cutoff for this account needs to be cut and dried...

    edit for 2/11 - sold off BPOPP in the Roth account and added both TTP and BWG.

    edit for 2/14 - actually bought (NDP) today - another Tortoise fund that dropped to a bigger discount this week. I can wait on TPZ and see if the discount holds next month.

    Themes: TPZ, TTP, BWG, BBF Stocks: TPZ, TTP, BWG, BBF
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