I have held various shipping stocks over the last 6-7 years, TNK, KSP, DHT, NAT. I just unloaded my last of NAT yesterday, for a tax loss, which completes my exit from shippers. Capital losses on all of them. I have had nothing but miserable results in this sector since 2009 or so. I'm done with shippers. My take on them, is they have zero innovation, and just simply sit on their hands waiting for the rates to go up, so they can make a profit. When rates tank (no pun intended), and stay low, they have no alternate means to make profit.
You just bought AGNC at $20.88 3 hours ago? It closed over 7 hrs ago at 21.02, and is up even more after hours. YOU LIE!
This thing (Preferred) has gone from 6.81 to 17.67 since late-January. The suspension must have caught the market by surprise. Was not already "baked in" to the price, apparently.
No piper cut here. My GAUCX is in my ROTH. I can get out any time I want, and not sweat the tax nightmare.
You mean the PSEC that has dropped from $10.98 to $8.60 in the last 6 months, while cutting their dividend from .111 to .08333? The FSC that has dropped from $9.86 to $7.09 over the last 6 months, while cutting their dividend from .092 to .06 and eliminating last months' divy completely? I'm sensing a pattern here. Doh!
" At least the subordinate period lasts longer". Exactly. It's a good thing. Delaying the wells keeps the common's distribution from getting halfed, that much longer. The piddly 8 wells will not bring in that much income.
Good point. I actually own GAUCX at a $4.85 entry point. Even after a split, I'll still be getting 8.6% yield. It's in a ROTH, so I have no "cost basis" to consider, when I decide to exit.
I remember buying an ISTAR reit preferred at $7, back in 2009 when the mortage fiasco occured, wondring if they were going to suspend the dividend. They never did. Point is, just because a preferred stock drops from $25 to $7, doesn't mean they automatically stop the dividend. (Fingers crossed ESCRP continues divy).