Landmark Infrastructure Preferred Series O



Ticker: LMRK-PO, Buy below $25.

Land Mark Infrastructure is a company that owns and operates infrastructure assets.

Why I Would Buy

  1. Below Par – This preferred is trading below par, allowing for an immediate whenever this security gets called.
  2. Yield –  Greater than 8%   
  3.  Insider Buying – The common shares have experienced aggressive insider buying, signaling the management’s confidence in the company’s health and longevity.
  4. Cumulative – The common stock can’t receive a cent in dividends until the preferred’s get their due first.

What Could Go Wrong

  1. MicroCap – Issuer has a market cap below 400 million, bringing associated risks.
  2. High Cost of Capital – Landmark suffers from high cost of capital, crimping higher profitability and elevating risk.

Disclosure: I am long LMRK-PO, please read additional disclosures here before taking any action based on this post.

Capstead Mortgage REIT Preferred Series E

Ticker: CMO-PE, Buy below $25.

Capstead Mortgage is a publicly traded residential mortgage REIT.

Why I Would Buy

  1. Below Par – This preferred is trading below par, allowing for an immediate whenever this security gets called.
  2. Yield –  Greater than 7%   
  3.  Insider Buying – The common shares have experienced a good amount of insider buying, signaling the management’s confidence in the company’s health and longevity.
  4. Cumulative – The common stock can’t receive a cent in dividends until the preferreds get their due first.

What Could Go Wrong

  1. Past Call Date – This preferred was eligible for redemption in May/2018, and may get called away anytime.

Disclosure: I am long CMO-PE, please read additional disclosures here before taking any action based on this post.

Medley LLC 6.875% Senior Notes

Ticker: MDLX, Buy below $25.

Why I Would Buy

  1. Yield – These notes (baby bonds) yield 6.875%! Despite the high yield they are relatively safe.
  2. Investment grade credit rating – The issuer Medley LLC has been rated “A-” by Egan-Jones Rating Company.
  3. Below Par – The baby bond  has a face value of $25 but currently trades below that, creating an opportunity for capital gains.
  4. 3 Year Call Protection – These bonds cannot be called earlier than 8/15/2019.
  5. High Insider Holdings – Insiders hold about 75% of Medley LLC, making it unlikely that they would permit a default or bankruptcy.

What Could Go Wrong

  1. High Yield – 6+% yield is rather high for a safe bond, there could be risks here that I am missing.
  2. Credit Rating Agency –  The A- credit rating was issued by a smaller rating agency. Egan-Jones is not one of the top three rating agencies, however it is a Nationally Recognized Statistical Ratings Organization (NRSRO) just like the three more well known ones.

Disclosure: I am long MDLX, please read additional disclosures here before taking any action based on this post.