E TalkMarkets Tuesday Talk: Of Brexit And Brandade

The reason for the rally according to Rapier is the positive vaccine news. However he notes that the industry overall is much worse off than a year ago. The same companies that are now rallying are nonetheless down substantially for the year.

"ExxonMobil is down 41%, Chevron is down 22%, Shell is down 39%, and ConocoPhillips is down 29% over the past 12 months. The outlook is definitely improving, but these companies are still in a hole. At least at this point, there is hope that they will climb out of it in 2021."

As markets continue to recover several TalkMarkets contributors are on the lookout for where to park their cash. Nikos Sismanis finds 6 Preferred Stocks To Buy Right Now, And 1 To Avoid. You can find all the specifics in the article which starts with a short primer on Preferred Stocks, along with detailed analysis of Sismanis' picks.

"Preferred Stock Glossary

For your own convenience in reading the rest of this report, we have listed the following preferred-stock-related terms and their corresponding meaning:

  • Par Value: The par value of preferred stock is the amount upon which the associated dividend is calculated. For instance, if the par value of the stock is $100 and the coupon/dividend is 5%, then the issuing entity must pay $5 per year for as long as the preferred stock is outstanding (usually on a quarterly or monthly basis).
  • Call date: The call date is a day on which the issuer has the right to redeem a callable preferred at par, or at a small premium to par, prior to the stated maturity date.
  • Redemption date: The redemption date is the date the issuer is obligated to redeem the preferred at par, and all of its accrued unpaid dividends. Most preferred stocks are irredeemable, remaining active for long as the issuer sees fit. In other words, they are perpetual.
  • Yield to call: The Yield to call (YTC) refers to the return a preferred stockholder receives if the preferred stock is held until the call date, which occurs sometime before it reaches maturity.
  • Yield to redemption: The same as YTC, but for the redemption, if stated."

Simsmanis suggests the following: 1) GasLog Ltd. Series-A (GLOG), a liquified natural gas carrier; 2) Gabelli Utility Trust Series-C (GUT), a fund which invests in stocks of companies providing products, services, or equipment for the generation or distribution of electricity, gas, water, telecommunications services, and infrastructure operations; 3) Landmark Infrastructure Partners LP – Series C (LMRKN), the company acquires, develops, owns, and manages a portfolio of real property interests and infrastructure assets in the United States; 4) Gladstone Investment – Series D (GAINM), the company primarily provides loans to lower middle-market businesses; 5) Höegh LNG Partners LP – Series A (HMLP), Hoegh owns, operates, and acquires floating storage and regasification units (FSRUs), liquefied natural gas (LNG) carriers, and other LNG infrastructure assets under long-term charters; and 6) Global Net Lease – Series A (GNL), is a publicly-traded REIT focused on commercial properties, with an emphasis on sale-leaseback transactions involving single tenant, mission-critical income producing net-leased assets across the United States, Western and Northern Europe.

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William K. 2 months ago Member's comment

Very interesting and also quite educational. And the rich get richer because those setting the rules want to "take care of their friends." Certainly those in government know how to help themselves. AND by the way, that is NOT doing meany favors. The fact, verified by history, is that people will put up with a great deal of misery, if it is heaped on slowly. Then all at once, just a small bit more, and the revolution ignites, or even explodes. Where that level of misery that leads to revolution can only be guessed at, and what will trigger the explosion may be a very small spark that did nothing a hundred times before. Thus the government and the 1% really need to remove some of the misery occasionally.