Crapola. It was too good to be true.
When the price reaches 18.33 and trades on or above there for a month my shares can be forced to convert. In essence, my maximum return is 6% per year unless the stock gets a buyout offer or goes up dramatically.
Maybe I'll get lucky.
How is it that they could force conversion? The equity is non callable.
"A preferred stock or bond that cannot be redeemed whenever desired by the issuer."
KEYCORP NEW PFD 7.75% Convertible. KEY is currently priced in the 15s and the conversion strike price is in the 18s. Current yield is just under 6%.
All buys were done in IRA #1. I increased COP and WMT by about 200% and sold call options against them and raised KEY to about 2.45% or about 50%.
IRA #1 is now down to about 29% cash which is used to sell cash secured put options.
Today with VGR trading over 23 she sold 85% of her holdings and will buy it back if it drops under xxx. The balance of her shares she'll hold.
Wouldn't It Be Nice
Song by The Beach Boys
Wouldn't it be nice if we were older?
Then we wouldn't have to wait so long
And wouldn't it be nice to live together
In the kind of world where we belong
You know it's gonna make it that much better
When we can say goodnight and stay together
Wouldn't it be nice if we could wake up
In the morning when the day is new?
And after having spent the day together
Hold each other close the whole night through
Happy times together we've been spending
I wish that every kiss was never ending
Wouldn't it be nice?
Maybe if we think, and wish, and hope, and pray, it might come true
Baby, then there wouldn't be a single thing we couldn't do
We could be married
And then we'd be happy
Wouldn't it be nice?
You know it seems the more we talk about it
It only… Full lyrics on Google Play
New Beach Boys movie coming out soon.........
High and low over the last twelve months--1,180.000 - 1,249.000.
Bought more in my personal account today in account #3, paid 1182/share. Currently trading at 12 month low.
Purchased using proceeds from LO/RAI merger.
Quarterly Dividend--- 18.75/share.
7/18/14--"Grandma Sold 90% of her COP shares
It was called away for the dividend yesterday because she was short the July 72.5 call options-certainly not her best move. The remaining shares are all more than paid for via profits."
She took a 3% position in COP today but sold call options against her shares. She did it for the 4.5% dividend yield and she earned a 2% option premium that expires in August. If shares are called away at 65, all profits will be tied up in remaining shares.
Roth IRA # 4, increased my BRKB position from 7.5% to 10.07%----paid 138.92/share.
Also bought ADAMS DIVERSIFIED EQUITY--ADX, in the same account. It's a 2.67% position. The RAI shares received in LO/RAI merger, now make up 3.7% and cash 10.8% of assets in this account.
PEMBROKE, Bermuda – May 4, 2015 – Endurance Specialty Holdings Ltd. (NYSE:ENH) today reported net
income available to common shareholders of $100.3 million and $2.23 per diluted common share for the first
quarter of 2015 versus net income of $96.3 million and $2.17 per diluted common share for the first quarter of
2014. Book value per diluted share was $62.79 at March 31, 2015, up 2.4% from December 31, 2014.
"Just the facts
Lorillard shareholders will receive $50.50 in cash and 0.2909 Reynolds American shares for each share of Lorillard. That values the deal at $68.88 per Lorillard share based on the closing price before the deal was announced, but it may come out to a little more or a little less depending on Reynolds American's share price when the deal closes.
As part of the deal, Imperial Tobacco will acquire Reynolds American's Kool, Salem, and Winston brands. In a shocking twist, Imperial will also acquire Lorillard's blu eCigs. Imperial will pay $7.1 billion for the brands."
1000 shares of LO will receive $50,500. in cash plus 290.9 shares of RAI currently valued at 72.15/share.
I also own Imperial which has also done quite well since the merger got the OK.
There was never an option to take just stock in RAI.
In my personal and farm accounts I've already sold naked call options against the shares I'll be receiving. I doubt RAI trades in the 80s until 2016.
Where to invest all this new cash? I have a few ideas but I'll wait until after I make my buys before disclosing my new moves.
One thing is for certain-my niece will be buying a new stock with her proceeds which could rock the markets after her purchase is disclosed. LO was her largest individual holding outside of her three ETFs she owns.
What to do with all the LO $$$$$?
My plan is to sell one of her ETFs and add that to her LO cash and buy-------- next week.
Thank you in advance LO.
"Travelers Property Casualty Announces Completion of its Spin-Off by Citigroup Hartford, CT – Aug. 20, 2002 – Travelers Property Casualty Corp. (NYSE: TAP.A and TAP.B) announced that Citigroup has completed the spin-off of Travelers Property Casualty by distributing today 219,050,000 shares of Travelers class A common stock and 450,050,000 shares of Travelers class B common stock, owned by Citigroup."
I have small amounts of TRV which I received in the spinoff from C back in 2002. Over the years I've never added any because aside from BRK I've only invested in insurance companies trading at discounts to book value such as WTM, MRH and AIG,
This will be a very high leveraged company as a result of the acquisition of LO, therefor there's no chance of a special dividend.
I sold more call options against RAI today to hedge my LO shares that will be converted Friday.
She took a 2.95% position in AAPL today but also sold call options against it for added income.
It's currently her 11th largest holding if you exclude preferred stocks.
She paid $126.47/share or about 12-13 times next year's earnings and free cash flow numbers.
Deal done this Friday--"The companies expect to close on June 12, they said in a press release".
" Reynolds American Inc on Monday cleared the final hurdle for its roughly $27.4 billion purchase of smaller rival Lorillard Inc as a federal judge approved its request to sell several cigarette brands."
I don't follow hockey so I have no idea.
But since GSK is a European company I'll go with the team closest to Europe.
Strong dollar-buy foreign companies, is my new motto.