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No One Likes Wheeler But The Preferred Pays 11%

Arturo Neto, CFA profile picture
Arturo Neto, CFA


  • All of the criticisms of Wheeler and management are valid.
  • Its common stock is too risky right now and possibly overvalued even though Bloomberg consensus price targets are 30% above current levels.
  • These target prices will probably come down after analysts update their models post earnings call.
  • The Preferred class D, however, pays an 11% yield to call with a step-up in dividends if not called by 2023.

Subscribers got a first look at this article when it was first published in Marketplace on June 29th. The Strategic Income Growth Portfolio has a 3% allocation.


Sometimes when you’re looking for attractive investment opportunities, you have to go to places where few others go - and I mean in the middle of nowhere - or what some folks might call the boonies! Have you ever driven through the boonies? I don’t mean to insult anyone that lives in rural America, but when I was first going to college, I enrolled at Troy State University in Troy, Alabama. I had never been there and had never lived outside Miami at that point. The plan was to walk-on to the baseball team, which at the time was one of the best Division II programs in the nation. I was a good ball player, but I knew I couldn’t make it onto a Division 1 team. In hindsight, I probably wouldn’t have made the Troy team either.

The point I’m getting to is that as I was driving up to Troy for my first semester of college, I was driving up highway 231 when I had finally arrived - a sign that said "Welcome to Troy". As I kept driving while looking for other signs pointing me towards the school, it wasn’t long before I saw another sign - "Now Leaving Troy, Thank you for visiting". "Wow", I said to myself, "what have I have gotten myself into?" To make a long-story short, I found the school, drove around Troy to check the place out for all of 30 minutes - that was enough to go around town three times - and then I turned around and went home. After driving for 24 hours straight, I was back home in my own bed, in a big city that you can’t drive through without noticing the big skyscrapers. Back then, Troy was the epitome of the

This article was written by

Arturo Neto, CFA profile picture
I have been involved in financial services for almost 30 years. When I first started focusing on financial planning and money management it was out of a first-hand experience watching friends and family having to work well past retirement age because they hadn't saved or invested enough. Eventually I landed in a family office worth hundreds of millions of dollars where I was able to see 'how the other half lived' so to speak. I now operate a wealth advisory firm and publish articles on Seeking Alpha for DIY investors that prefer to manage their own money. As publisher of The Income Strategist, a premium subscription service on SA, my goal is to guide investors on how best to generate income from their investments. The service includes several income portfolios with different strategies that members can use independently or in combination. As part of the service, I also collaborate with other SA authors to provide broader and deeper coverage of investing. In addition to being a Chartered Financial Analyst, I am also a Certified Private Wealth Advisor and have an MBA from the Darden Graduate School of Business at the University of Virginia. I also hold a Master of Science in Finance and Bachelors in Finance from Florida International University. Having lived in Miami almost my entire life, my family and I relocated to Nashville, Tennessee in May 2018 in the pursuit of a better lifestyle and southern hospitality. If you're ever in the area, please do reach out. I'm happy to be teaming up with the following expert analyst contributors:1. Dilantha De Silva2. The Belgian Dentist

Analyst’s Disclosure: I am/we are long WHLRD. 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.


Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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