Author: WSTNN

PINES and QUIBS and PD’s Oh My! How About Minibonds for Income Investors?

by Fred Fuld III

Have you ever considered Minibonds™ for an income portfolio or your retirement plan? (Not muni bonds, mini bonds.) These are bonds that are traded just like stocks on the New York Stock Exchange, American Stock Exchange, or NASDAQ for around $25 per share.

They are almost like preferred stocks except that they pay interest instead of dividends and they generally have a specific maturity date. In addition, they usually pay interest quarterly instead of semi-annually. Sometimes they are referred to as PINES (Public Income Notes) or QUIBS (Quarterly Interest Bonds) or QUICS (Quarterly Income Capital Securities) or QUIDS (Quarterly Income Debt Securities). There are even a few that are issued as Perpetual Debt, which means that there is no maturity date.

The advantages of Minibonds to the corporate issuers are that the interest is deductible to the corporation (unlike dividends which are not deductible).

The advantages to the investor are as follows:

  • The bonds are ‘safer’ than preferred stocks (in other words, if the corporation goes out of business, the bonds are generally paid off first before the preferred or common stock).
  • The Minibonds (with the exception of the perpetual debt bonds) have some limited protection against inflation versus preferred stocks in that if interest rates go up, their value will drop, yet the par value (usually $25) will be still paid back at maturity. Whereas, preferred stocks have no maturity.
  • The small denomination is a benefit, especially when looking at an annual IRA investment.
  • A fourth benefit is that since they are traded like stocks, there is more liquidity than buying or selling a $5,000 bond. However, these are still very illiquid investments. Most have a very low daily volume.

Here are a few worth reviewing in no particular order. Keep in mind that the stock ticker symbol shown may differ depending on which financial website you are looking and and which brokerage firm you are using. When you enter a quote on these with your broker and it doesn’t look right, you may need to call them to make sure you are using the correct symbol. For example, I found three different symbols for the Ford note, depending on the web site and broker.

Ford Motor Company 6.20% Notes due 6/1/2059 (F-B) (F-PB) (FpB)

Duke Energy Corp., 5.625% Junior Subordinated Debentures due 9/15/2078 (DUKH)

Chicken Soup for the Soul Entertainment, Inc. 9.50% Notes Due 07/31/2025 (CSSEN)

Bank of America Corp, 6.45% Income Capital Obligation Notes ICONS due 12/15/2066 (MER-K) (MER-PK)

AT&T Inc., 5.625% Global Notes due 8/1/2067 (TBC)

Pitney Bowes, Inc., 6.70% Notes due 3/7/2043 (PBI-B) (PBI-PB)

QVC Inc., 6.375% Senior Secured Notes due 9/13/2067 (QVCD)

Just remember, even though these muni bonds are exchange traded, they are not anywhere as liquid as the stocks of the companies that issued them.

Happy investing!

 

Disclosure; Author didn’t own any of the above at the time the article was written. 

Exclusive Interview: Michelle Phillips, Lead Singer of the Mamas & the Papas, NFT Memorabilia Auction

by Fred Fuld III

The following delightful, informative, and entertaining interview was provided by Michelle Phillips, a vocalist with the Mamas & the Papas, also songwriter, actress, and model. She co-wrote the popular song “California Dreamin'” which was certified as a Gold Record in 1966 and was inducted into the Grammy Hall of Fame in 2001. The song is No. 89 in Rolling Stone’s list of the 500 Greatest Songs of All Time

She has appeared in 43 TV shows, including Knots Landing, Beverly Hills 90210, Fantasy Island, and Hotel,  and over 40 movies, including Dillinger, for which she was nominated for a Golden Globe Award for Most Promising Newcomer.

This interview covers:

  • Her NFT (Non-Fungible Token) auction
  • What is included in the auction
  • The Painted Turtle charitable organization
  • The changes in the music industry
  • Singing versus Acting
  • Success
  • Advice for those interested in getting into the entertainment business

The Michelle Phillips Interview

Enjoy listening to this great discussion.

To stream the interview, click:

HERE

You can also download the interview as an mp3 by right-clicking (or Control clicking) HERE and choosing “Save as”.

More Info About the Upcoming “California Girl” Auction

NFT Michelle Phillips Drawing

The original “California Girl” memorabilia and her videotaped hand drawn group image through ViciNFT through June 29

ViciNFT Corporation  designs, builds and manages digital assets and non-fungible tokens (NFTs) for enterprises and creators. The company’s works are carbon neutral, and include a mandatory charity component equal to 25% of auction proceeds, making “NFTs for the common good.”

The video of the original drawing, the digital drawing

For concierge bidding for those who buy via US Dollars and credit cards contact ViciNFT Corporation

More Info About the Painted Turtle

The Painted Turtle’s mission is to provide a year-round, life-changing and authentic camp experience for children with chronic and life-threatening illnesses. The Painted Turtle supports children’s medical needs, inspires them to reach beyond their illness, and provides care, education, and respite for their families. All campers and families attend free of charge.

California Dreamin’

The Mamas & The Papas “California Dreamin'” (September 24, 1967) On The Ed Sullivan Show

California Dreamin’

 

 

Photo source: Wikipedia

Stocks Going Ex Dividend in July 2021

The following is a short list of some of the many stocks going ex dividend during the next month.

Many traders and investors use the stock trading technique called ‘Buying Dividends,’ also commonly referred to as ‘Dividend Capture.’ This is the strategy of buying stocks before the ex dividend date and selling the stock shortly after the ex date at about the same price, yet still being entitled to the dividend.

This technique generally works in bull markets and flat or choppy markets, but you need to avoid the strategy during bear markets. In order to be entitled to the dividend, you have to buy the stock before the ex-dividend date, and you can’t sell the stock until after the ex date.

The actual dividend may not be paid for another few weeks. WallStreetNewsNetwork.com has compiled a downloadable and sortable list of the stocks going ex dividend in the near future. The list contains many dividend paying companies, lots with market caps over $500 million, and some with yields over 2%. Here are a few examples showing the stock symbol, the ex-dividend date, the periodic dividend amount.

Cisco Systems, Inc. (CSCO) 7/2/2021 0.37 2.79%
Gap, Inc. (GPS) 7/6/2021 0.12 1.10%
WD-40 Company (WDFC) 7/15/2021 0.72 1.13%
Colgate-Palmolive Company (CL) 7/20/2021 0.45 2.21%
Lowe’s Companies, Inc. (LOW) 7/20/2021 0.80 1.67%
Clorox Company (CLX) 7/27/2021 1.16 2.69%
Hasbro, Inc. (HAS) 7/30/2021 0.68 2.91%

The additional ex-dividend stocks can be found HERE . (If you have been to the page before, and the latest link doesn’t show up, you may have to empty your cache.) If you like dividend stocks, you should check out some of the other high yield stock lists at WSTNN.com HERE .

Dividend definitions:

Declaration date: the day that the company declares that there is going to be an upcoming dividend.

Ex-dividend date: the day on which if you buy the stock, you would not be entitled to that particular dividend; or the first day on which a shareholder can sell the shares and still be entitled to the dividend.

Record date: the day when you must be on the company’s books as a shareholder to receive the dividend. The ex-dividend date is normally set for stocks at two business days before the record date.

Payment date: the day on which the dividend payment is actually made, which can be as long at two months after the ex date.

Don’t forget to reconfirm the ex-dividend date with the company before implementing this technique.

Disclosure: Author did not own any of the above at the time the article was written; affiliate links are on this page.

The Best Way to Invest in Real Estate: Top Residential REITs

by Fred Fuld III

Let’s say that you want to invest in real estate. You don’t want to buy single family residences, because prices are too high and you don’t want to deal with leaky toilets and other management issues. Even if you have a property manager, you still have to deal with rental problems indirectly.

You might want to consider Real Estate Investment Trusts, most commonly referred to as REITs (pronounced “reets”). However, there are many different kinds of REITS, such as hotel REITs and industrial REITs. REITs pass through most of the rental income to investors, avoiding taxation at the corporate level.

Many investors are staying away from office building REITs, since so many people are working from home now and companies don’t need as much office space.

Other REITs that some investors are avoiding are retail REITs, as many retail shops have closed up and more and more people are buying online instead of through brick and mortar locations.

So investors have been looking at residential REITs which own apartment buildings. If people can’t afford to buy a home, they have to live somewhere, and apartments are usually the best option.

The largest REIT by market capitalization is Equity Residential (EQR) with a market cap of $29.568 billion. The company has a price to earnings ratio of 45  and pays a yield of 2.27%.

Running a very, very close second is AvalonBay Communities (AVB) at a market cap of $29.537 billion. It has a P/E ratio of 37 and has a dividend rate of 2.96%.

Invitation Homes (INVH) is in the business of leasing single-family homes. It sports a market cap of $21.2 billion and a P/E ratio of 105.  It pay a yield of 1.7%.

Essex Property Trust (ESS) has a $19.5 billion market cap. It trades at 43 times earnings and the yield is 2.69%.

You might want to check and see if your portfolio has a home for a residential REIT.

 

Disclosure: Author didn’t own any of the above at the time the article was written.

Top Short Interest Analyzers

by Fred Fuld III

NASDAQ has a service on their site which allows you to check on the short interest on any NASDAQ stock for any month.

For example, if you enter Sundial (SNDL) [short interest is measured on the 15th of every month], you come up with the fact that the short interest is 267,716,798 shares, an increase of 4.47% from the prior month, with an average daily share volume of 208,079,855 and 1.29 days to cover.

For NYSE stocks, such as GameStop (GME) and AMC (AMC), check out Shortsqueeze.com. It will give you the following:
Short Interest Ratio (Days To Cover)
Short Percent of Float
Short % Increase / Decrease
Short Interest (Current Shares Short)
Shares Float
Short Interest (Prior Shares Short)

There is also a website called Shortinterest.com which shows the top shorted stocks.

Disclosure: Author owns SNDL.

The Playboy Playmate Stock Picking Contest

by Fred Fuld III

Did you know that Playboy Enterprises, back when it was publicly traded as the previous entity, held stock picking contests for its Playmates (often referred to as Bunnies).

Hugh Hefner took Playboy private in May of 2011. It is now public again with the name PLBY Group (PLBY).

Back in 2006, the contest was won by Deanna Brooks, who was Playboy’s Miss May 1998. She won the Playboy Playmate Stock Picking Contest with a return on her stock portfolio of 43.43% for the year. Her return was 10% higher than the second highest contestant.

Another trait that set Deanna Brooks apart from the other contestants was that she was the oldest of the contestants. Her investments were as follows:
YAMANA GOLD (AUY) 99.39%
HAUPPAUGE DIGITAL (HAUP) 43.98%
IBM (IBM) 18.19%
PETROLEO BRASILEIRO (PBR) 44.51%
PFIZER (PFE) 11.06%

The return of 43.43% in 2006 was pretty sexy, since the Dow Jones industrials rose only 16.29%, the S&P 500 added just 13.62%, and the Nasdaq was up only 9.52% during that same year.

(Blast from the Past)

 

Disclosure: Author didn’t own any of the above at the time that article was written.

Father’s Day Gifts for Dads Who Like to Invest

by Fred Fuld III

Father’s Day will be here soon, on Sunday, June 20. Have you done your shopping yet? If not, here are a few suggestions.

First, you may want to get your father an Ekster Parliament smart wallet. I actually own one of these and did a review of it. It can call your cell phone and your cell phone can call it.

Second, if you want to get your dad something funny or weird, you should check out my review of the Weirdest Wall Street Stuff on Amazon, which includes everything from a trader’s throw pillow to an AMC stock sticker to money socks.

Finally, here are some other ideas.

SUBMARINE SPORTS CAR

How would you like to drive a zero emissions vehicle that you and drive on land or underwater. This car is offered by Hammacher Schlemmer.

Price: $2,000,000

Hammacher Schlemmer

WALL STREET DOUBLE FEATURE

Available in both Blu-Ray and DVD.

 

STOCK TRADERS ALMANAC 2021



Every stock trader should have this. Filled with great information.

 

BULL AND BEAR CUFF LINKS

Does your father wear cuff links? This would make a perfect gift.

 

INVESTMENT TRIVIA BOOK

This book has all kinds of trivia about the stock market, venture capital, bitcoin, and much more!

BULL MARKET T-SHIRT

Here’s a Great Gift for Less Than 20 Bucks! “I MADE MY MONEY BY BEING A BULL”

BEAR MARKET T-SHIRT


For those fathers who made their fortune by shorting the market.

REAL ESTATE TRIVIA BOOK


This book has all kinds of trivia about real estate, including the woman who refused to sell her house to Penthouse and Trump.

Happy Father’s Day!!!

 

 

 

Disclosure: This post and page contains affiliate links.

The Thirst for Dividends: Top Yielding Water Utility Stocks

by Fred Fuld III

Many years ago, I began investing in water utility stocks. I assumed that any company that can sell something that is ubiquitous as water, must have a great business. It ended up that all the water stocks I purchased got bought out by another company, at a much higher price than what I paid for it.

Water utilities don’t pay as high a dividend yield as electric utilities or gas utilities, but there are several water utility stocks with yields over 1.7% to 4.0%. Here are a few of these stocks.

American Water Works Company (AWK) is a $29.1 billion market cap water utility which yields 1.5%. The company provides water and wastewater services in 16 states. The stock has a trailing price to earnings ratio of 40.5 and a forward PE of 37.7.

California Water Service Group (CWT) provides water utility services in California, Washington, New Mexico, and Hawaii. This $3 billion market cap company trades at 26 times trailing earnings and 33 times forward earnings. It pays a dividend yield of 1.56%.

Middlesex Water Company (MSEX), a $1.5 billion company, provides water services in New Jersey, Delaware, and Pennsylvania. The stock trades at 41 times trailing earnings and 39.5 times forward earnings. The stock yields 1.24%.

The York Water Company (YORW), based in Pennsylvania, is a $685 million company. It has a trailing PE of 42 and a forward PE of 39.5. The yield is 1.43%.

I might be all wet but one of these water companies might just clench your portfolio thirst for dividends.

Disclosure: Author owns CWT.

What Warren Buffett is Dumping and Buying

by Fred Fuld III

You know, if you are thinking of investing in Apple (AAPL) stock, you just might want to consider buying shares of Warren Buffett’s Berkshire Hathaway (BRK-A) (BRK-B) stock, as 40% of the Berkshire portfolio is made up of Apple.

This way, if Apple does well, you participate through Berkshire, and if it doesn’t, at least you have diversification though Berkshire’s ownership of over 45 other stocks.

So let’s look at the rest of Buffett’s portfolio. In the first quarter of the year, he sold out of two companies, Suncor Energy (SU) and Synchrony Financial (SYF).

Warren Buffett has been reducing positions in a couple bank stocks, US Bancorp (USB) and Wells Fargo (WFC). He has also been lightening up on General Motors (GM), Chevron (CVX), Abbvie (ABBV), Bristol-Myers Squibb (BMY), Merck (MRK), Stoneco (STNE), Axalta Coating (AXTA), Sirius XM Radio (SIRI), and Liberty Global (LBTYA).

He hasn’t been buying much, but he has been adding to his positions in Verizon (VZ), buying over 12 million additional shares. He also added 17.5 million shares to his Kroger (KR) position, and bought more Restoration Hardware (RH) and Marsh & McLellan (MMC).

There is one brand new stock in the Berkshire Hathaway portfolio., the insurance company Aon (AON). The stock has a trailing price to earnings ratio of 27.5 and a forward P/E of 22.5. It pays a yield of 0.81%.

To see the list of all the Warren Buffett holdings, click HERE.

Maybe some of these stocks will make you as successful as Warren Buffett.

 

Disclosure: Author owns AAPL.