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Regency Centers (a REIT) to Redeem 2 Preferred Issues--to Float New Issue

February 6, 2012  11 pm

In the continuing stream of 'refi's' that are being done in the marketplace Regency Centers (ticker:REG) will call 2 series of preferred
stocks (REG-D ad REG-C) on March 31, 2012.  These 2 issues had coupons of 7.25% and 7.45%.

Additionally the company is in the process of registering a new issue that will come to market during February (New ticker:REG-F).  
We expect that this issue will have a coupon of around 6.75%---a nice savings to the company--and less income for us holders.

The info on the new issue has not yet been published--we will list the details when they firm up.

UPDATE--the REG-F issue will come at a coupon of 6 5/8%---an 1/8% less than we had hoped  Details HERE


Issue to Add to the Blended Quality Model Portfolio

February 6, 2012    2 pm

We will add 400 shares of Excel Trust Preferred (ticker:EXL-B) to the Blended Model Portfolio tomorrow.  Excel is a REIT and we
consider them to be in the upper end of the middle tier of REITs--although from the nice yield on this issue we would believe they
were somewhat more risky.  With a very conservative debt to equity ratio of .76 Excel is quite strong.

This purchase brings the Blended Model to about 70% invested so we will need 2 more purchases to get closer to our 90% target.

You can find the dope on this issue here.


If You Buy Preferreds Please Understand the Call (Redemption) Date

February 3, 2012    2:30 pm

If you are a buyer and holder of preferred stocks there is a very good article on Seeking Alpha which reinforces what we have been
writing for years----Eric Parnell goes through some examples which help to make it all understandable for those that may have
some confusion on call dates relative to the pricing of the issue as the normal 'first eligible call' date arrives.  It is helpful to read the
comments as well as Five Star brings up a valid point on 'calls that potentially can happen prior to that 'call eligible date",

Please always read the prospectus of issues you are buying.  We are slowly adding them to our site here---but otherwise you can
find them on the SEC Edgar site by searching by company name.

Here is link to the story referenced above.

GMX Preferred Update

February 3, 2012  10:30 am

Just a note that we have sold our small position just a bit ago---it is going too far too fast for us so 100% gain in 2 days is plenty for
us (we sold at 12.25 and it is now trading at 13.50).  CAUTION--look for a big dump at the close today--like yesterday

We had noted below that we planned to 'hold' unless it reached $12.00.


Campus Crest Communities (a REIT) to Bring a 8% Cumulative Preferred Offering to Market

February 2, 2012   5 pm

Campus Crest Communities  (ticker:CCG) is a rather smallish (under 100 million in revenues) REIT that builds housing and and
near college campuses around the nation.

We consider the company to be of a medium type of quality--and the 8% coupon on this issue reflects that fact.

The ticker for the new issue is CCG-A and it should be trading within 30 days on the NYSE.

You can get all the scoop on the issue here.


An Update on GMX Resources Preferred Shares

February 2, 2012    2:30 pm

As the market day nears its end we are up about 75% on our small positions purchased yesterday of GMXR-P.  One could have
bought this morning at a price of $6.25-$7.00 and still had a very nice gain as it has traded as high as $10.35 before backing off to
$9.70.

Knowing when to sell is even more important than knowing when to buy---our plan is to simply hold.  If we were nervous about this
we would go ahead and bank our profits---but we believe things will play out this way over the next 6 weeks.  The preferred shares
will bounce around between $8 and $12 in the next 4 weeks and if it hit $12 we would likely sell.  5 weeks from now (March 8th) the
company should declare the quarterly dividend on the preferred--this should move the shares up a buck or two in the following 2
weeks.  After that point the issue will become news driven - meaning if the drilling results are good it will continue to move toward
par--but likely taking the entire year to do so.  If the drilling results are poor--all bets are off and we could relive this week again in the
second half of the year.

Update NOTE--a couple traders 'dumped' at the market close down at 8.75 (we half expected that)---we may pick up more tomorrow
if the trading action is favorable.

Thanks to our readers for calling this share price drop to our attention yesterday--without their questions we likely would have
missed this great opportunity.



GMX Resources Preferred - A Dog? or the Bargain of the Day?

February 1, 2012  11 pm

With a current yield today of 34% is this a screaming buy?  In a totally uncharacteristic move we have purchased a small position
in our personal accounts in the Preferred Shares (ticker:GMXR-P) of GMX Resources a small Oil and Gas E and P company.  These
shares have a coupon of 9 1/4% and after taking a shellacking the last many months bottomed (we hope) at $5.63 today on very
heavy volume.

GMX Resources is a small oil and gas exploration and production company---and to their detriment they were entirely focused on
natural gas (with oil as a side play) and given the massive tumble of the natural gas market they have been pushed up against the
wall financially.  The company decided to refocus on oil last year and has been pushing in that direction with decent success.  Given
the refocusing on oil the company took a large writedown on natural gas leases recently which made the income statement look
horrendous.

In normal investor crowd fashion--the baby and all the bath water got tossed out including the preferreds which we hope hit rock
bottom today.  Now this action reminds us very much of the poundings all preferreds took in 2008-2009 when we able to pick up
investment grade preferreds for under $10/share (these were $25/share issues)---within 6 months they were back above $20 and
most today are trading at par.

Now are we saying that GMX is investment grade?  Hell No---in fact they have a long road ahead to get the ship righted--but no
company discontinues cumulative preferred stock dividends just because they had a bad day--the liability continues on cumulatives.
What we are saying is that the risk has generally been priced in to the shares and the upside is equal to or greater than the
downside (excepting bankruptcy).

The company late today--after the market closed, released an operational update and with plenty of money in the till we believe a
preferred dividend suspension at this time is not likely and with skillful management they can get through the worst of it within a year.

Our target on the preferreds is $15/share within 4 months--although we would be more than happy with a doubling ($12) of the
share price.

While this is an income stock which we normally cover it is not for the faint of heart.  Our position is less than 1% of our
portfolio and a total loss will not change anything for us---but it is our intent to make a decent capital gain on top of the nice 34%
current yield.

Please use caution if you are going to dabble with this issue---do your Due Diligence.


Realty Income (a REIT) to Come with 6 5/8% Monthly Income Preferred--to Call 7 3/8% Issue

February 1, 2012  2 pm

In a typical refi transaction Realty Income (ticker:O) is coming with a 6 5/8% Monthly Income Cumulative Redeemable Preferred
Issue and it will have the typical terms for a Preferred Issue.  We believe the ticker will be O-F and it will be redeemable (callable) in
2017--5 years after issue date.  The proceeds will redeem the O-D issue which has a coupon of 7 3/8%--once again good for the
company and less so for us income investors.

We consider this a decent issue in terms of quality--not as safe as a Public Storage preferred---but not as risky as Ashford
Hospitality preferred (for instance)--the yield reflects this difference (PSA recently issued a 5.9% preferred issue).

Personally we really like the monthly paying preferreds--for no particular reason other than we like to see our income hit the
statement on a monthly basis instead of a quarterly basis.

All the final details are not yet published, but the preliminary documents are here.

This issue will begin trading in the next 30 days.


1 Sale for Tuesday and 1 Addition to Model Portfolios

January 30, 2012   11:30  pm

As we mentioned (and you may know) Provident Energy (ticker:PVX) is being bought by Pembina Pipelines and it is likely that the
shares will trade in a narrow range until the closing of the deal.   We bought the shares almost 3 years ago at $4.48/Share and they
were trading tonight at $11.20.  As such we will sell the shares sometime during this week.  Obviously this model is under invested
so we don't need the cash--but there is always a remote possibility that any deal may not close.

Additionally we will add 400 shares of Cogdell Spencer 8 1/2% Perpetual  Preferred stock (ticker:CSA-A) to the High Yield Portfolio.  
The issue is trading at a current yield of 8 3/8% and is not callable until 2015.  Cogdell Spencer is a healthcare REIT and is in the
process of being purchased by the large healthcare REIT Ventas---this should add security to the payout on this issue.


Model Portfolio Additions for 1/27/2012

January 27, 2012  1 pm

We will add the following to our model portfolios either today or Monday (depending on pricing--we use limit orders at or below the
current market price).

To the High Quality Model we are adding US Bancorp Fixed to Floating 6 1/2% Preferred Shares (ticker:USB-M).  US Bancorp is one
the strongest of all the domestic banking companies and the current yield is 6.36%.  The rates doesn't 'float' until 2022.  This should
move the portfolio back to the 77-78% invested area.

To the Blended Quality Model we are adding Pebblebrook Hotel Trust, 8% Preferred Shares (ticker:PEB-B).  Pebblebrook is a REIT
formed just a couple years ago to buy the more distressed properties out there.  As with all the Lodging REITs out there there is
some risk (which is why we are not in the High Quality Model).  The current yield is 8.125%.  The Blended Model will move to the
62-63% invested area---so we have a ways to go on the model (heading toward 90%).

We are going to make more buys next week--or we will not have a chance of making our annual return goals for the year as we will
miss too many dividend opportunities.  We are taking the FED at their word that they will keep rates low until late 2014 (we shall see)


Gladstone Commercial (a REIT) to Issue Preferred Stock

January 24, 2012   11pm

Gladstone Commercial Corp (ticker:GOOD)  (a finance REIT) announced they will offer 1 million Cumulative Redeemable Term
Preferred Shares.  The shares will pay dividends monthly and will be callable as soon as 1/31/2016.  The issue has a mandatory
call on 1/31/2017 at  $25 par value plus accrued dividends.

Final details of the offering are not in yet---although we expect the issue to come at a coupon of 7-7 1/4%.

We will post details as soon as they are available.

Update 1/25/2012 4 pm

This issue has priced and as expected it is coming at 7 1/8%---1.4 million shares are being sold instead of the expected 1 million.

The ticker symbol will be GOODN.  All the scoop is here.


Excel Trust (a REIT) To Come with 8 1/8% Cumulative Redeemable Preferred

January 22, 2012  11:45 pm

Excel Trust (ticker:EXL), a REIT focused on Retail Strip Mall Properties, has announced a new issue of cumulative redeemable
preferred stock with a coupon of 8 1/8%.  This yield seems to be the likely range for mid quality REITs as Hudson Pacific Properties
mentioned below came with an issue in the same area just days ago.

The issue will begin to trade in the next 30 days under the ticker symbol of EXL-B.  It will pay .507/share quarterly.

The Prospectus is here.



Hugoton and San Juan Basin Royalty Trusts Cut Payouts Again

January 20, 2012  2 pm

As we suspected might happen both Hugoton and San Juan Basin U.S. Royalty Trusts announced distribution cuts today.  Hugoton
cut for the 3rd month in a row---at todays payout it is now just yielding 6.99% (on an annualized basis).  Of course the question is
what does the future hold with natural gas prices?

Just on a simplified basis the problem is this---Hugoton received $4.16/MMbtu for gas in the most recent month versus $4.52 the
prior month.  San Juan Basin received $4.48/MMbtu in the most recent month.

The problem is this---NYMEX cash prices are $2.35/MMbtu----we would bet on much lower production and profits from these
Trusts.


Caution Needed with Hugoton Royalty Trust (ticker:HGT) and All Natural Gas Focused Royalty
Trusts

January 19, 2012   5 pm

We have noticed substantial traffic to our site in search of information on natural gas Royalty Trusts.  Because of this traffic we have
researched a bit more on the Royalty Trusts and we can warn investors that looking at the yields on Royalty Trusts that are natural
gas focused may be misleading.

The problem isn't one that would be typical for a Royalty Trusts (declining production), but is one that is a combination of declining
production and lower prices --  natural gas prices are at 10 year lows.  You might believe that this would cause the Trusts to
severely lower payouts---but most of these Trusts are receiving a net income royalty from the production company who likely has
sold production on a forward contract--when prices were higher.  Thus--over time natural gas revenues and net income will be
falling.  

Let's take the case of Hugoton Royalty Trust (ticker:HGT).  The price of the trust has fallen from $22 two months ago to down under
$14---a drop of near 40%.   What caused this drop????

1st off the Trust has distributions monthly and  November, December and January 2012 distributions look like this -- 12.7 cents, 11
cents, 9 cents---obviously a bad trend.  It is certain the Trust is anticipating lower net income royalties from XTO Energy (the owner
and operator of the land).  Also you should understand that Hugoton gets 80-85% of its net income royalty from natural gas.  Just a
tiny bit of their net income royalty comes from oil production--so high prices there help very little.

The combination of lower production and lower anticipated net income royalties equal a much lower share price.

REMEMBER---Trusts like Hugoton simply are entitled to a royalty payment from the operator/owner.  The Trusts do not do the
selling---in this case the Trust is dependant upon XTO Energy and the price they can get for the gas and oil.

The bottom line is that while the yields may look decent on a percentage basis they are likely misleading with Trusts focused on
natural gas.  As the share price falls the yield goes up---but then as the distribution is cut the yield falls.  A vicious cycle until the
bottom is found.

BE CAREFUL OUT THERE.


REIT Hudson Pacific Properties to Come with More 8 3/8% Preferred Stock

January 19,  2012 Noon

In a reminder to investors that there are still fairly high yield preferreds out there Hudson Pacific Properties is selling more shares of
their 8 3/8% cumulative redeemable preferreds (ticker:HPP-B).  This issue first came to market in December 10th of 2010.  The
issue is now trading above par ($25/share) at $26 for a current yield of 8.04%.  Note that if you held this to the first call date--and it
was called you will have a lower yield to call than the current yield.

Shares of this issue are trading down 45 cents today in reaction to the addition shares coming to market---if it continues to fall  a bit
it may be a decent issue 'on sale".

The prospectus is here.

US Bancorp to Come With Fixed to Floating Preferred Stock

January 18, 2012  4 pm

US Bancorp is coming to market with a Fixed to Floating Rate Preferred Issue (ticker:USB-M) in the next week or two.  While pricing
isn't firm yet it is believed to be in the area of 6.5% (fixed rate) and a floating rate after 2022.

As has been the case recently the proceeds of the issues will be used to redeem Trust Preferred Shares.

Details of the offering are not yet available, but we will post the prospectus and add the issue to the regular preferred stock listings
as soon as the details are released.

Updated 1/20/2012--final documents are here


Adding Many Canadian Income Issues

January 18, 2012  10 am

Lately we have been adding lots of Canadian Income Issues to our listing  (noted on the right).  We only add issues that have
significant income (above 3%) and which trade in the U.S. in some form (on the NYSE or NASDAQ Pink Sheets).  What we are
learning is that the Canadian Income Issue market has lots of variation---and may well have some super income issues to invest in,
both in the models and in our personal portfolios.

It should be noted that the Canadian Income Issue market changed dramatically when the law changed in Canada to tax Trusts in
the same manner as corporations.  90% of trusts converted to corporations and all of us got the pleasure of sharing what used to
be dividends with the Canadian government---thus generally payouts were reduced.  In the switch over to corporate status we made
a number of poorly timed 'buys' and got smacked down on a number of the issues, but as time has passed I think we may be
getting by the disruptive period and the space deserves a new look.

The one area we are looking closely at is the Canadian REIT market--we have added a number of them to the list..

We would encourage everyone who is an income investor to look over the list--check the company websites for all available info and
possibly consider these issues for being part of your portfolio (click the link on the ticker symbol for the company website).


First Republic Bank to Come with Regular Preferred Offering

January 17, 2012 12:30 PM

First Republic Bank (ticker: FRC) is coming with a regular preferred issue with a estimated coupon in the 6.95-7% area.  These will
be non cumulative and will callable after January 30, 2017.

First Republic will be calling some Trust Preferred issues as Trust Preferred shares are being phased out of being usable for Tier
One Capital by financial companies.  REMEMBER--it is likely that ANY Trust Preferred Issue is callable regardless of the 'official'
first call date and the original prospectus likely gives the company the right to call with a change in law etc. (this is debatable,
but some issues that were not officially callable have been called based on this theory and investors have been burned).  We
wrote about one such instance on Seeking Alpha last spring in a Fifth Third Bank Trust Issue.  You can look at that article here.

This will be a $25/share issue.

The prospectus is not yet available--we will post it when it is received by the SEC.


Pembina Pipeline to Take Out Provident Energy

January 16, 2012  11:30 pm

It was announced today that Pembina Pipeline will acquire Provident Energy---both Canadian Oil and Gas Midstream companies.  
We hold Provident Energy (ticker: PVX) in the High Yield Model Portfolio and have held it since 2/2009 having bought it at a purchase
price of $4.48/share.  It is included in the Canadian Income Model as well--but at a much higher purchase price of $8.45.  The take
out price is in the area of $12/share.  Very nice profit on a 3 year hold of over 150%--(and of near 50% in the Canadian Model).  We
follow both of these issues on the Canadian Income Issues page


Portfolio Additions for Tuesday, January 17th.

January 16, 2012  11 pm

We will go ahead and add MLP Alliance Bernstein (ticker: AB) to the Blended Income Model Portfolio tomorrow (Tuesday)---after
racing ahead for a week it has fallen back to the 14.50 area which is our target area (see numerous mentions below).

Additionally we are also adding Stag Industrial 9% Preferred Stock (ticker: STAG-A) to the High Yield Model Portfolio.  Stag is a newer
REIT and has limited history---but just the same to capture the 9% yield we will go ahead and give it a try.  The REIT has shown a
net loss the first couple of quarters of existence, but does show a positive FFO.  Stag's latest filing is here.

These investments will move the Blended Model toward 60% invested, but the High Yield Model will just hold its own in the 54%
area as the Stag Industrial Preferred will simply offset the Provident Energy takeout.


PS Business Parks Calls Another Redeemable Preferred Issue

January 13, 2012  5 pm

After calling an issue only 4 days ago PSB has called for redemption of their 7.2% Preferred Shares (ticker:PSB-M).  It would appear
that between Public Storage (ticker:PSA) and PS Business Parks (ticker:PSB) there is a mad rush to get redemptions done at this
time so they can 'refi' them at extremely attractive rates (see below).  PSA and PSB are affiliated companies--both are REITs.

As a company they have to do what they can to kept costs down--as an income investor we hate to lose these high quality issues (of
course we can by the newer issues at a rate of 1-1/2% below the current coupon.

The redemption date on the PSB-M shares is 2/17/2012.


Hospitality Properties To Come with a 7 1/8% Preferred Offering

January 13, 2012 2 pm

Hospitality Properties Trust (ticker:HPT) is coming with a 7 1/8% Preferred stock offering.  The company will use the proceeds to call
their 8 7/8% Preferred Shares (ticker: HPT-B).  Wow--a nice savings to the company on this 'refi'.

The ticker for the new issue will be HPT-D.  The issue should start trading within 30 days.

HPT is a lodging and travel center REIT.


Just Because We are Re-Investing Doesn't Mean We Think All is Well

January 13, 2012   1 am

As we note below we are moving to get somewhat more invested in the Model Portfolios.  Why?  We have a choice obviously--to
earn near zero in a cash like vehicles or to take our chances in the various markets offering us a more lucrative return.

As you move towards retirement it is very difficult to earn NOTHING on your money---but on the other hand those that have bought
and held common stocks likely realize that you can be severely butchered holding a security you consider safe.  Few investors in
common stocks have made money in the last few years--sure there are occassional wins--but the odds of a huge portfolio 'hit' have
been very high.  We have learned that you can do quite well holding either preferred stocks or exchange traded debt.  The High
Quality Issues, while yielding just 6.5%ish right now have performed remarkably well in the last 18 months.  Of course to get these
returns you must be invested - not looking on from the sidelines.

As we now invest we think that the global economic situation is very dangerous down the road--but acceptable for investing today.  
Looking at only the U.S. you would think that all is ok---and it is TODAY.  Maybe a year out we think nothing is further from the
truth----but as usual timing is everything.  Looking at the global picture we would say that all of Europe and part of Asia is a damned
mess---and the U.S. is a mess, but has a great printing press.  Of course Europe now has a fine printing press of their own and it is
propping up virtually all the countries--excepting Germany.  We see very little of a constructive nature taking place in Europe or the
U.S. that gives us a warm, fuzzy feeling.  We fully expect very high inflation in the future (when?) with skyrocketing interest rates (but
when?).

All the above being said we are moving the percentages invested in each Model up---we feel we need a return on our money---and
there is no return in cash.  We are watching the markets closely on a global basis for signs of complete breakdowns--although we
have no illusion that we can see Black Swan events in advance--but we are nervously watching.


As Expected PS Business Parks Comes with a 6.45% Preferred Offering

January 11, 2012   11 pm

As expected PS Business Parks has come with a 6.45% cumulative preferred stock offering (Ticker  PSB-S).  Below we noted that
PSB had called their 7 3/8% preferreds and this is the follow up offering to  'refi' at a savings to the REIT of near 1% on the jumbo
sized $200 million dollar offering.

As we noted with the Public Storage Preferreds being sold with a 5.9% coupon it will be interesting to see how the marketplace
prices these a week or 2 after issue---will they trade just above or just below $25?  PS Business Parks is an affiliate of Public
Storage.

We consider these preferreds to be near investment grade and suitable for generally conservative investors.

NOTE--these shares will begin trading in the next 30 days.

You can get the scoop on these share here.


Targeted Percentage Invested Closer

Janaury 10, 2012  10:30 pm

With the purchases noted below we move the Model Portfolios closer to our current targeted goal of 90%.

The High Quality Model moves to 80% invested--thus we need 1 additional position to get near our 90% goal.

Both the Blended Model and the High Yield Models have a fair distance to go with the Blended Model being at 54% and the High
Yield Model being at 56% invested.  You will recall that a month or 2 ago we incorrectly liquidated a fair amount of these models in
anticipation of a possible Black Swan type event--that being avoided, we are left way under invested.

Note that these moves are being made with the broad general expectations that economic conditions are mildly improved and that
the Fed will keep rates low until mid 2013 (their words).

Honestly we expect that we will have some economic events---somewhere in the world, a number of times this year that will do a
portfolio 'smack down'--but we are unable to crawl in a hole waiting for these events to unfold.  Of course the uncertainty is one of the
reasons we have 3 models--each react differently to these 'smack downs'---and the Quality Models has done very well when these
events occur.  We personally are positioned most like the High Quality Model.


New Additions For 1/10/2012 to Model Portfolios

January 9, 2012  11 pm

To our Blended Quality Income Model we are adding the following 2 issues tomorrow (if pricing cooperates)--

Apartment Investment and Management Cumulative Preferred Stock (Ticker  AIV-U).  Aimco is one of the largest Apartment REITs
and we feel good owning these preferreds.  They have a coupon of 7 3/4% and a current yield of 7.7%.

Aviva plc Capital Securities exchange traded debt (Ticker   AVV) with a 8 1/4% coupon and a current yield of 8.07%.  Aviva is a large
British insurer and as you might expect has some added risk because of the European debt issues.  Unfortunately you can only get
8%+ by buying some risk..

To Our High Quality Income Model we are adding the following issue--

Gladstone Capital Term Preferred Stock (Ticker   GLAD-A) with a coupon of 7 1/8% and a current yield of 7.06%.  While we
generally think Gladstone Capital is a poor company to own---this is a preferred share of a closed end fund (CEF) and as such has
at least 200% asset coverage on the preferred and debt issues.

To Our High Yield Portfolio we are adding the following issue--

KKR Financial Holdings exchange traded debt (Ticker  KFH) with a 8 3/8% coupon and a current yield of 8 1/8%.  Of course KKR is
the old Kohlberg Kravis Roberts operating as a limited partnership now.

Each of these purchases will be in the 5-7% area of total portfolio value.  The High Quality Portfolio now needs just 1 additional
purchase to be where we want it (90ish% invested).

The Blended Model and the High Yield still will need 3-4 positions each to get where we are going (90% invested).

NOTE that these purchases are made only at current price levels--no chasing.  It may take a couple days to get these trades
completed.

By CLICKING ON THE TICKER SYMBOL LINKS you can get the details on each issue.

Added 1/10/2012  11 am  - we were able to fill our orders at reasonable prices this a.m.



PS Business Parks Calls 7 3/8 % Preferred

January 9, 2012  2:30 pm

PS Business Parks has called for redemption of their 7 3/8% cumulative preferred Shares (ticker PSB-O) at a price of $25 plus
accrued dividends from 1/1/2012 to the call date of 2/13/2012.

PS Business Parks is an affiliate of Public Storage (PSA) who is aggressively 'refinancing' the companies by calling the higher
coupon preferreds and issuing much lower paying preferreds.


Public Storage (PSA) Coming with a 5.9% Coupon Preferred

January 8, 2012

PSA is coming this week with a Preferred Stock issue at the very low coupon of 5.9%.  This is notable as PSA calls preferreds as
they become redeemable and then comes with a new issue to replace those just called  (of course this assumes the 'refi' is at a
favorable rate).  The issue just called had a coupon of 6 3/4% meaning the new issue will save the company .85% in dividend costs.
 With the new 5.9% coupon we believe that they have reached the bottom of where they can go in terms of coupon rates.  It will be
interesting to see if this $25 issues trades just above or below issue price---of course if it trades down below $25 we know that
investors are demanding a higher interest rate from PSA.  We believe it will trade very close to the issue price - at least for the next
number of months.

NOTE--these will begin trading in the next 30 days

Investing Climate Gets a 'Yellow Light' with Moderately Improving Employment

January 6, 2012  7 :30 am

We are pleased with the employment numbers the last few months and they are close to fulfilling our expectations --finally.  As most
of you who have read my writings over the years know I have just a very few economic statistics I watch closely--Employment,
Consumer Confidence, Fuel Prices and Interest Rates.  All of these are moderately positive at this time--they could be better, but at
least they are moving in the right direction.

From these statistics alone we move our investing mentality to a 'yellow light' from a somewhat 'red light'.  To get a full on 'green
light' we would need some decent resolution to the European debt crisis and some action in Washington on the U.S. budget
problem.  We are watching these very closely---they have the potential to kill the investing environment.

With our outlook we will get the Models invested up toward the 90% level---BUT we will not go headlong into 'high yield' as these
issues are most viable only with a full out expanding economy--we will likley upgrade any purchases for the High Yield Model to a bit
higher quality to al least garner some earnings, although they may be less than we desire.


Portfolio Additions for January 5th.

January 4, 2012 10 pm

We will add 2 issues to our Model Portfolios tomorrow (or Friday--depending on pricing)

While we hold Glacier Water Services Trust Preferreds (Ticker GWSVP) in our Blended Model we are going to add it to the High Yield
Portfolio.  Glacier Water Services is a quirky little $100 million dollar company and the Trust Preferred Shares have been on 'sale' all
week at  $24.25ish for a current yield of around 9.25%.  This is a monthly paying preferred.  We wrote about them last April on
Seeking Alpha--and generally not much has changed.  The article is here.  We also believe that there is a fair chance these shares
will be called in the second half of the year--in fact the company would like to do an IPO of common shares and if they do they intend
to call the Trust Preferreds (at $25 plus accrued interest).

We will add Alliance Bernstein Limited Partnership (ticker:AB) to the Blended Model.  Alliance Bernstein is a Master Limited
Partnership that is focused on money management.  You can see them on our MLP Page and from there you can check their
website.  They have a current yield of 7.5% and trade in the lower end of their 52 week range.  The general theme here is that we
will gather the 7.5% yield and if in fact the economy is improving we have a shot of another 10% or more on the capital gain
side--total potential in the next year of 20%.  AB has had a moderately difficult time in the last year of growing the business (in fact it
is shrinking) thus if they can get things back on track we have a real shot at the 20% target.

These positions will each be in the 5-8% area (of total Model value).

Added 1/5/2012 - we were able to purchase Glacier Water Trust Preferred.  We are looking for a dip in
Alliance Bernstein to buy.

Added 1/6/2012 - we continue to wait for a small setback as AB has raced ahead.  Our buy point is in
the 14.50 to 14.75 area.


2011 - Mostly a Decent Investing Year

January 3, 2012  11 pm

It has been a tough, but relatively successful year investing.  Our High Quality Model Portfolio garnered a gain of 7.3% for 2011.  This
portfolio has had little turnover and focuses on primarily Preferred Stocks and Exchange Traded Debt issues.  The portfolio did
contain 2 common stock issues---one of which was finally sold after 2 years of underperformance  (Pfizer).  The other (Great Plains
Energy) has done 'ok', but certainly was not stellar by any means.  We think the biggest problem with this model is that we are only
73% invested and to get even close to 7% returns for 2012 this needs to change--somewhere in the 90% area (2 more positions)
would be about right.

The Blended Quality Model  performed relatively well with a gain of 6.1%.  The very obvious problem is that we're dramatically under
invested as the year ended (only 41% invested) as we 'chickened out' on holding onto issues that had somewhat higher risk.  We
know that the 'piper will be paid' both in Europe and the U.S. at some point in time with large jumps in interest rates as the printing
presses are on high in both regions and there seems to be no willingness to cut spending----there is only one way out and that is
inflation--thus higher interest rates.  In spite of knowing with confidence what will happen---we are utterly helpless when knowing
the exact timing of these events (and our 'chicken investing' proves it).  We will need to move back into positions rather quickly if we
are to get some more decent gains in 2012.  We will not go willy nillie into getting reinvesting--but will try do get cash deployed in the
next 6 weeks--as opportunity presents itself.

The High Yield Model was a disaster.  While we are still calculating the losses (we think they will end around down 4%) the lesson
is simple---when you have some stock heading down sharply don't continue to buy more--nor even wait for it to bottom---for the
bottom may never come (or it is a long ways down).  We took a massive hit on New Flyer Industries as we averaged down on the
Canadian bus maker (big mistake)  before dumping it.  We also held Canadian propane distributor Superior Plus.  We thought both
had great 'stories'----but the market disagreed firmly.  Like the Blended Model this portfolio is way under invested at 42% invested.  
We will have to work very hard on this one to get reinvested--there is no chance of a decent return unless we get invested.

Lastly in the middle of the year (6/15) we tossed together a Canadian Income Model Portfolio.  This portfolio was hardly touched
from inception--more a case of not having time--and during the 6 months swung quite wildly.  While the final tally isn't done we
believe that this model will be up 1-2% for the 6 months.  We would hope to give this model a bit more attention during 2012.

Let there be no doubt that we believe a 'black swan' day will show up once or twice during 2012----there are too many issues boiling
under the surface globally to not have a couple days where indexes drop maybe 8-10% in a single day.  The day may be provoked by
a financial event--but more likely a foolish military move by Iran or some other rogue nation in the middle east.  We also will reach a
time where interest rates move sharply higher--but Bernanke says the fed is on hold until mid 2013 and we are forced to take him at
his word (for lack of better guesses out there).  We wish we could be smarter about timing on interest rate movements--but we know
we can't be---no one can be.


Our Newest Website Additions

December 31, 2011  11:30 pm

Recently we have added 2 new sections to our website.  1st we added a page devoted simply to Preferred Stocks Paying Monthly
Dividends.  This is a rather short list, but may be useful to some.  2nd we added a page devoted to REIT Preferred Shares.  There
are many REITs  that are very highly rated and their preferred shares are considered some of the safest issues available for the very
conservative investor.

As always we continue to add and update our site and as such we have added many Canadian Income Issues to our listings as
well as adding Master Limited Partnerships as we discover them.  We consider all of our listings to be 95% complete, but we work
to make them better everyday of the week.


General American Investors Keeps Preferred Buyback In Place

December 19, 2011

One of the ultra conservative preferred stocks that we have held for quite some time is that of the closed end fund General American
Investors (GAM).

The preferred shares (GAM Pr B) which have a coupon of 5.95% provide us with a reasonable return in times when we feel very
uneasy about holding any stock whether they be commons or preferreds.

We wrote about Preferred Stocks on Closed End Funds way back in April--and generally speaking not much has changed since
then. Preferreds on Closed End Funds remain some of the most attractive investments out there for the very conservative income
investor. There are a number of reasons why this is true but rather than restating them I will just link to the previous article.

In the case of General American Investors there is a special attraction that adds a bit of stability to the preferreds as the company
has had a buyback in place since December, 2008. The company authorized the buyback of up to 1 million preferred shares at any
point in which the share price fell below $25 (par). There is still authority available for purchasing over 600,000 shares (as continued
authorization was just granted by their board of directors last week).

It should be noted that these preferred shares have not traded below $25 nor above $26 for 22 months, so there should be no
expectation of any capital gain- just a solid 5.7%-5.95% dividend (depending on purchase price). It should also be noted that these
shares are redeemable at any time at $25/share (although we would be surprised if this happened anytime soon).

We have no particular feeling--positive or negative about the common shares of General American Investors.

Disclosure: We are long General American Investors Preferred shares


Some Nice Issues Coming To Market

December 6, 2011  1:30 pm

If you look in the right hand column you will note that there are some newer issues that have come to market with some real decent
dividends (or interest).  Of course depending on your macro outlook now may not be the time to be buying.  We are waiting at this
point in time, but we will have a number of these issues on our 'watch list'.


Europe (and their Banks) Needs a Bailout---Markets Rally Huge

November 30, 2011 11 pm

On days like today we are quite happy to no longer own common stocks---because the common sense left the market long ago.

With the Dow Industrials up 490 points today on Central Bank moves that had to be in reaction to some major European Banks on
the brink of insolvancy---we can only guess at the logic for this move.  Of course there is no real change----we either must have
austerity across the globe in most developed countries OR we must print money setting the world up for massive inflation
(someday).  Today the central banks chose the 'printing money' option.

Now we must admit that there are some decent economic numbers around---on retail sales and consumer confidence which may
be helpful (and we hope so), but generally we need jobs--and we need them now (or very soon).

Europe is headed toward a recession and we will be right behind them---unless we get the printing presses really turned up on
high--and with German 10 year bunds up 30-50 basis points from a week ago and the U.S. 10 year spiking higher today there will
be no happy ending to this story.  Turn up the press and we have massive inflation in the future----turn down the presses and we
have stagnation for a very long time.

We are staying mighty cautious---and have the Blended Portfolio and the High Yield Portfolios at the lowest invested levels of the
year---the Quality Portfolio remains strongly invested and performing very well.

We wait and watch happy to accept a slightly lower return to remain in safe control of our capital.



More Model Issues to Sell Today

November 23, 2011 8 am

As circumstances worsen globally in the debt markets---and economies are visibly weakening we will now unload Cogdell Spenser
Preferred, (ticker CSA-A) and TC Pipelines (ticker TCLP)  from the Blended Quality Portfolio and Whitestone REIT (ticker WSR) and
the Red Lion Preferred (RLH-A) from the High Yield Portfolio.

Just to reiterate that we are positioning the portfolios for a possible 'plunge' in markets that will severely damage portfolios--a
possible 2008 type of event which presents bargains galore in all issues (in which case we would reinvest).  We are starting with
the lower quality issues and working toward the quality issues.  The recession is coming - globally - and we can now see markets
much lower.  Of course exactly when we don't know but it seems we are much closer today than we were last month---Dow 12,000
will be just a distant memory a year from now.

It is a fair assumption that we are lightening up on personal portfolios.


Moving Out of These Securities

November 21, 2011

We are unloading Ashford Hospitality Preferred (ticker AHT-D) and Red Lion Preferred (RLH-A) from the Blended Quality
Portfolio--raising more cash by liquidating the weak quality issues.


Look For Wild Swings to Continue

November 19, 2011 Noon CST

Sometimes when you don't have an important economic issue in the headlines of the day you can be lulled into thinking that an
issue has been resolved-we have found out time and time again that this is not the case with European issues (or for that matter
the U.S. issues).  Many fools just stick their head in the ground and say 'all is ok''---it isn't.

Looking at Greece and Italy and the budget issues they have the only thing that has changed is their Prime Ministers.  Now we
believe that this is a good start---but in the end austerity is the only medicine that is likely to work.  Then there is France which may
have issues as well (and of course no one is talking about Ireland and Portugal).  As we see it nothing of substance has been done
in Europe--and the budget cutting and austerity is yet to come.  It is our opinion that the austerity in Europe will cause a recession of
some magnitude in Europe starting in the new year--exactly when depends on when they actually get their reforms done.

In the U.S. there is little of substance being done relative to our deficits and the Super Committee (or NOT so Super) in Congress
appear to be no where---what a joke.  Their lack of action can set us into a deep recession (versus a mild recession).  This is not
rocket science---but does require some give and take and we don't see anyone with the balls to step up to the plate.

With little to no movement on the items above we don't see many reasons to be optimistic at this time and we look for the wild
swings in the equity markets to continue until they finally plunge when the austerity that is coming finally arrives---or at the realization
that it is coming---next week or next month--who knows--but there are no miracles to be had to fix these issues (although the
relatively low fuel prices have helped the consumer spend on other items).

We will thin our portfolios selectively---still sticking to the better quality issues (even in the High Yield Portfolio).  The High Yield
Portfolio is now at 60% invested after the sales last week.  The Blended Quality and High Quality Portfolio are still in the 75-80%
invested and we will just prune a few issues as the next week or two unfold.



Just When We Were Feeling Better.....

November 10, 2011  1 am

As we noted just 26 hours ago it is dangerous to be a bit positive on world events----and bam we get really slammed by Italy.

Contrary to liquidating we are going to go ahead and sell Otelco (ticker:OTT) and New Flyer (ticker:NFYEF) from the High Yield
Portfolio.  The ones that get hit the hardest and come back the slowest are the lowest quality issues---so as a moderately definsive
position we will raise a bit of cash today (Thursday) and then re-evaluate.  It makes no sense that Europe can't get a fix in--but I
guess they can't so we have to protect the cash to live to battle another day

Of course New Flyer should have been tossed out long ago---we were wed to a loser.

We may raise more cash Friday---we will see.


Getting Happier By the Day

November 8, 2011  11 pm

Of course writing anything positive on here about either Europe or the U.S. congress is just asking for trouble--as seldom do they
follow through on promises and plans----but for a couple days now it has almost appeared as if the Greece issues are moving
toward settlement--although Italy has blown up and France may soon blow up--just the same it appears that constructive talks are
taking place.  And in the U.S. congress the 'Super Committee' appears to be moving toward an initial closing of the budget
gap--although there is a huge amount of work ahead.

Also today we see that U.S. employers are advertising for the most number of job openings in the last 3 years.  We have seen
private employment grow at a modest level----and if this is a sign of a job pickup we could potentially bust out of the current 'malaise'.

At this time we will not do any liquidating from the portfolios as we earlier threatened---as our gains have been good and we hate to
miss the November, December dividends because we pulled the trigger without good cause.


Big Day (Days) Ahead

November 4, 2011  6 am

Today we have the most important report of the month with the employment report.  We kind of expect the same old story with some
moderate growth in private employment and a decline in government jobs---of course we wouldn't be surprised with softer numbers
nor with a modestly larger number than expected (we expect maybe 100,000 new jobs overall)---we would be shocked with anything
over 200,000 new jobs.

Of course there is various Greek news this weekend as we wait to see who will run this country---these are market moving
events--but we are tired of them.

There are little blurbs out of the 'Super Committee' that they may actually be making some progress in negotiating some budget
fixes---this is potentially very good news--but we shall see.

We will be updating  model portfolio performance over the weekend.


Greek This--Greek That--SCREW Them!!

November 1, 2011  11 pm

I imagine everyone is about as tired as I am with the European situation---there is no way to get on with fixing the European
economy until Greece gets real with their situation.  We have mentioned each time we have written in the last month that we will not
invest more until something good happens and it is apparent that we may be waiting quite a while.

I think it is about heeve ho time for the Greeks---the 50% haircut deal was made and the PM decides he wants to put it to a
referendum??? Get a life.  I think it is time for the EU to decide to go ahead and take a 75% writedown on the Greek debt and be
done with it---if necessary get the printing presses turned up----but damn it take care of it.  Let the Greeks fend for themselves and
let the chips fall where they may.

That being said the U.S. had better get going on our own deal with the debt---I believe it is 23 days until automatic cuts--and honestly
we are only a tiny bit better off than the Greeks because we have our own printing presses.  I think the politicians have the ability to
throw the entire economy into depression. Get the Hell going!!

We can say right now---as the month wears on a couple more weeks, we may begin to liquidate holdings in all personal and
model portfolios.  It isn't that we are fearful----but instead we think we may be coming to one of those moments, such as in 2008
and 2009 where quality preferreds get tossed out with the junk---and then we would be able to move in and buy at rock bottom
prices (I'm talking 40-50% discounts to par).

We will post our moves here---we simply won't give back our gains of the last 3 years without a fight.

Euphoria Engulfs the Markets

October 27, 3 pm

As we write the Dow Jones Industrial is up 362 points---good thing we aren't common stock folks since we didn't really think that any
patch that Europe put on their issues could generate this much euphoria---oh well--up or down we weren't changing anything in any
of our portfolios.  If there is really a fix it will help give us a bit more confidence as we look ahead.  Additionally the big Dow rise has
lifted all boats--including our income issues--and we are always happy for that fact.

Of course there is always an inverse reaction somewhere---and interest rates have spiked higher--way higher.  The 10 year
Treasury is up 19 basis points--this is a huge move.  While on one hand that says 'things are better' while on the other hand items
like house refi's are shut off with moves like this.  Of course what we need is 'all is well' and low rates, which is not likely to happen.

Todays GDP news was near where we expected it to be--but of course we are skeptical that this is meaningful.  Without jobs we are
toast and will enter a recession this winter (at least we think)..

So what is one to do now?  In general we don't plan to act on any news at this moment.  For someone with REIT's and MLP's that
are moving higher they may want to consider if they should lighten up on some of them.  We hold Whitestone REIT (ticker:WSR)
which we love and likely are too 'married' to that position but we think the future is extremely bright for them--even in a soft economy.
Our other holding that has been suspect is Superior Plus (ticker:SUUIF) which has been pounded down to the point of having a
current yield of 16 to 19%---Superior plus is up 10% today and we plan to continue to hold it as the yield is great and we don't see
much downside to it at this point in time.

Of course we will use the next month to research the issues we need to fill out the portfolio's if we determine that the global
economy is not going to get massacred.

No Change to Anything

October 26, 1 am

Europe goes from claiming to having a fix to their crisis to having nothing at all---except now having Italy which is 'on the edge' and
the government seems unwilling to do anything about it (sounds like the U.S. government).

Consumer confidence in the U.S. has fallen again even though we thought it would improve with the lower fuel prices we have had
the last couple of months.  Obviously it is still about jobs and we have none (at least not near enough).

We think that the recent turmoil in Europe and the ongoing political stalemate in the U.S. serve to confirm that we are minimally in a
'malaise' teetering on recession----and honestly we don't care if the 'official' stats show that GDP is growing later this week.  On a
global macro basis we think there is really big trouble ahead----while only a couple weeks ago we where quite hopeful that we could
get the global economy moving--we have now hard pressed to see a way out of this mess.  The U.S. congress is totally worthless
and the day of reckoning moves closer and closer---and it will arrive, it is just a question of when.  

Enough of the negative nabob shit----the model portfolios have done nicely and for the moment we are happy with our personal and
model portfolios.  The models have all moved up in October---with the Blended Quality model up near 2%--putting it close to the
performance of the Quality Portfolio.  The High Yield Model lags badly YTD, but has moved up near 2% in October.  We do want to
add 1 position to each model but won't until something positive happens in the world.  All in all there is little upside in equity markets
from here and there is huge downside and while our income issues are not hurt dramatically by downside moves, generally
speaking, they can get out of hand---and no doubt that potential is there.


Are The Stars Aligned?

October 11, 2011 6 am

To watch all of the various markets in the last week they would say 'all is well'.  Certainly portfolios of all types have been helped by
the huge 10% rally over the last week--we are happy to watch as all investments go up.

Reviewing some of the data from the last week--in particular the employment numbers we are encouraged.  Additionally the
Europeans are making noise like they may actually accomplish some progress in getting fresh capital into the banks (although we
will believe it when we see it).

Our jobs numbers last week were quite good in the private sector---but as we wrote about many times below the public sector
continues to cut jobs as their revenue falls---but all in all it was not as bad as it could have been.   It makes me believe that we may
simply head into a long 'malaise' instead of a statistical recession--but we believe it is now up to the politicians--to do something
constructive for a change relative to creating jobs.  They have the power to kill any possible recovery simply by acting like the children
they have proven themselves to be in the last year.

Also the lower gas prices are helping not only the pocketbook of the consumer, but the confidence as well.  This is most key to a
recovery as no one spends from a hole in the ground which is where the consumer heads when confidence is very low.

As we noted below we added Maiden Holdings Exchange Traded Debt (ticker:MHNA) to the Blended Quality Portfolio which moves it
up toward the 80% invested area and we are happy with this level at this point in time.

Superior Plus (ticker:SUUIF) and Whitestone REIT (ticker;WSR) have shot up from the poundings noted below and the High Yield
Model has performed the best in the last week.

So----are the stars aligned-----NO----are they moving in the right direction---YES.  We are 80% invested in the High Quality Model and
80% in the Blended Quality Model---but only 70% in the High Yield Model.  This is OK for the time being, but they will need to move to
90% as the stars get closer to aligning--but we know that it is much too soon to say that is occuring.


The Pause That Refreshes--But Don't Let Down Your Guard Yet

October 6, 2011  4 pm

The last few days have helped us recoup some of losses mentioned below and given us the confidence to add to the Blended
Quality Portfolio.  We have added Maiden Holdings Exchange Traded Debt to the model (ticker:MHNA).  Maiden Holdings is a
Re-Insurer and we think most of the reinsurers are moderately good quality (Some others are Arch Capital, Axis Capital and Partner
RE---these all have some decent preferred stocks outstanding).  The Maiden Holdings Exchange Traded Debt has a current yield of
8.56% (a coupon of 8 1/4%).

Tomorrow we have the most important data of the month and that is the employment numbers.  The market is expecting a very
neutral number and we think the markets would act favorable with this result.  It will confirm or not our recession expectations.  We
would be quite happy with a positive number---we hope we are wrong on the recession---life would be easier if we were wrong, not
to mention trying to invest in the current mess.

As a disclosure we did buy some additional Superior Plus (ticker:SUUIF) shares on Tuesday in our personal holdings.  At the
depressed pricing the 19% yield looked tasty.  Yesterday they got an upgrade from one of the Canadian Brokerage companies with
a target of $8.50 (Canadian)---$8.10 ish in US Dollars.  The add has worked very well for 2 days.

The High Quality and Blended Quality Models have done fairly well this week while the low quality--High Yield Model and the
Canadian Model continue to do poorly as low quality issues are shunned.

The Trainwreck Continues--2 of Our Favorites Get Smashed

October 3, 2011

Down, Down, Down go equity prices and interest rates.  Additionally for the 1st time we note even quality issues off a percent or 2
today.

Also while we know that you have to have the best quality to survive whole in this type of market and that is how we are primarily
positioned personally we do own 2 lower quality issues as we felt they had high, safe pay outs.  Well we can tell you for sure that not
everyone apparently agrees with us as our issues got smashed today.

The 2 issues I refer to are Whitestone REIT (ticker:WSR) and Superior Plus (ticker:SUUIF).  Whitestone was off earlier prices but
had generally held its own until todays 5% loss---and Superior Plus took a 15% loss today after trending down for a month.  This
puts the current yield at WSR at around 12% and Superior Plus up in the 18% range.  Most disappointing is that we watch these
carefully and know the relative safety of these issues.  In the end, down is down, and one has to wonder what they don't know.

Maybe there is opportunity in these beaten down high yielders?  Maybe not.

Here are links to their most recent financials in case one wants to check them out.  Here is Superior Plus and here is Whitestone.

Canadian Income Issues

A quick note on Canadian Income Issues---man are these issues getting pounded lower  In June we started a Model Portfolio with
just Canadian Issues---it is 11% lower after today- in just 3 months  These are likely to go lower yet and one may want to sift through
the ashes for potential buys for the future.  You can access both the Canadian Model and the separate Canadian Income Issues
page links at the top of this page.


Time to Review Our Model Portfolios

September 30, 2011  4 pm

Another week of insane volatility that has the potential to ruin even the best of investors.

As noted in all the articles below we started to get very bearish in the June and July period----and extremely bearish in early August.  
We have noted for months that the only way to get through this period whole was to migrate to the highest of quality issues.  Well we
think the Model Portfolios proved the point very well.

Our High Quality Model performed perfectly--nice gains over the last quarter while shunning the wild market swings.  While the
Blended Quality Model did not do too bad---the High Yield Portfolio got slaughtered--not a real surprise.  Our  Canadian Model which
we tossed together in June has gotten fairly beat up since inception,

All in all when we put these models together we intended them to be learning tools----and they do spell out a very clear picture.  
When times are good move up as high as you can on the risk issues--and when things look bad (like now) move to the low risk--top
quality issues.  Move out of MLP's, REIT's and other risky assets as they are not good for capital preservation.

Looking deeper at the Quality Model Portfolio which is 82.5% invested as of 9/30/2011 the portfolio is up 5.6% for the year (and
21.1% since inception) --damned nice.  Our move to buy a couple high quality issues really helped out as we took in over $1400 in
dividends and interest for September (March, June, September and December are always the big months).  While we have cash in
the account that we could buy a couple more quality issues we will wait for the time being---in fact we are looking at getting out of
Sterling Bancorp Preferred and SY Bancorp preferred.  While these 2 issues have served us well we are concerned that being
smaller banks a recession could hurt them badly.

The Blended Quality Model has done OK---and has raced ahead of the High Yield Portfolio in total gain since inception.  The model
ends the month up 3.9% for the year and 29.8% since inception.  We took in over $1000 for the month in dividends and interest.  We
are only 71% invested in this model and we will find one issue in the next month to add here.  We had looked at dumping Red Lion
Preferred from this portfolio as hotels are very vulnerable to recession.

The High Yield Model got slaughtered in the last couple of months----given the overall poor performance of the high yield sectors
this is no surprise.  We would like to think that if one was paying more attention day to day to their investments you would not have
lost as much (we are unable to spend too much time on each portfolio so the losses maybe are enlarged because of that).  The
portfolio is down 5.4% for the year.  The obvious mistake was increasing holdings of Whitestone REIT (still one of our favorites) and
New Flyer Industries as their prices fell.  Additionally the preferred stock of GMX Resources has gotten pounded down.  Whether we
take action in this portfolio soon remains to be seen.  The idea of the model is to test various portfolio types---and if we upgrade this
one too much soon it simply becomes a quality portfolio and we would gain no info having 2 quality models.

The Canadian Portfolio which we tossed together in June in about 15 minutes is down over 8% since inception.  All but 1 of the
holdings is down--some sharply so.  Honestly while conceptually the Canadian Issues paying out huge amounts to their cash flows
seems like a good deal for the income investor they obviously do not perform well in an economy like the one we now have been
experiencing.

All in all we are happy with the models through 9 months and are glad that personally we invest most like the Quality Model--boring
but 'sleep well at night' stuff.


Big Market Up Days Help Confidence

September 27, 2011  

Big up days in the equity markets are rather meaningless to us, but they serve the purpose of increasing consumer confidence.  My
wife who never pays attention to markets always sits up and pays attention when the evening newscast has a lead story on the  
global markets crashing--it doesn't make her feel good.

Today we had an unchanged Consumer Confidence report from the Conference Board.  I guess the best thing that can be said is
that it could have been worse.  This is no surprise to us--BUT we do see a bright spot for next months report if gasoline prices stay
down for the next month.  This will make a very large difference in consumer confidence--driving past the filling station each day and
seeing 3.19 or 3.29 makes the consumer say 'all is well'.  Additionally it frees up some cash to spend on other goods and services.

Additionally we got good news in the housing sector this morning that prices were up for the 4th month in a row.  While it is really
impossible to say these are definitive statistics--like gas prices it makes us 'feel good'.

Lastly there is a claim that Europe is solving their issues---it makes us feel good--although it may be pure BS--we shall see.

None of the above changes our outlook for a statistical recession starting in January--but we feel good today.


No Doubt---the Same Old Thing

September 26, 2011  10 am

While there are no individual economic reports that are likely to be major market movers this week--there are a few reports we want
to watch closely for a macro point of view.  In particular the conference boards Consumer Confidence report on Tuesday and the
Univ of Michigans Consumer Sentiment report on Friday.  While we have heard a couple commentators say that consumer
confidence is not important -- we could not disagree more on this point.  These reports reflect everything important---jobs, food
prices, fuel prices etc.  Of course any simpleton knows the consumer is 2/3rds of the economy---but they would have you believe
because the economy is global our numbers don't matter so much---well I say bullshit to that thought.  While individual corporations
may benefit from the global economy us individual Americans need jobs--and there haven't been many of them around for a long
time.

Gas at the pump is down quite a lot now---and this is the brightest economic factor we see at this time.  This should be a positive for
the consumer as they redeploy those savings into other consumer goods.  Additionally it will brighten their outlook helping
consumer confidence.  Unfortunately we are likely to destroy added confidence gained from fuel prices by political bickering in
Washington.

Our plan is nothing new--be in quality.

Here We Go Again

September 22, 2011    10 am

We have little time to write, but simply put---you have to be in quality shares if you want to survive this downturn and the further drops
to come.

Our Quality Model Portfolio has essentially been unchanged during the turbulance.  By reading below you can find those issues that
are the best quality holdings for an income investor.

MLP's and REIT's are NOT capital preservation holdings for a conservative income investor.  There time will come--but it is down the
road maybe 6 months.


What's Next?

September 19, 2011

There is very little scheduled  economic news coming out this week so most likely Europe will drive the markets this week.  We still
don't think that the finance folks in Europe are doing anything to fix the system there on a long term basis.  In our opinion we should
just have a Greek default and  get it behind us--in the last 12 months Greece has done zero to cut their spending--in fact they are
spending 8% more than a year ago--truly a broken system (like our own).

While we have been researching some MLP's--and we like their increasing yields, we know that any purchase of less than super
quality in this market will result in losses. Logically when we can garner 6-7% with little risk - it makes no sense to go for 9% and
lose 20% of our capital.

While the 10 year Treasury hit a low yield around 1.9% last week before popping back up to 2.1% we still believe it has much lower
to go-there is no choice given that there is no fix whatsoever in our system--and congress and the President are still doing nothing.

Look for a rocky week ahead and don't be lead into thinking there is any real reason for equities to move higher---it's all about the
jobs and we don't think there are any new ones out there at this point in time.


Patience Required--Maybe a Quieter Week Ahead (and Maybe Not)

September 11, 2011  11:30 pm

We hate having to be patient--we have been patient for so long and we feel like we want to buy some Limited Partnerships or
REIT's--but alas we can't because preservation of capital is key in these scary times and we are far from resolving global economic
issues.

In the coming week we have numerous economic reports----but none that we believe will provide definitive guidance for investing.  
We have both Producer Prices and Consumer Prices on Wednesday and Thursday.  Also we have retail sales on Wednesday and
then the University of Michigan Consumer Sentiment on Friday.  We think that the 2 most important numbers are the Retail Sales
numbers and the Consumer Sentiment  since both measure the most important consumer who drives the economy (long term) and
who we believe has crawled into a hole.

The other important event to watch, while not an economic indicator directly, is the 10 Year Treasury auction on Tuesday and the 30
Year auction on Wedenesday--if you will recall these had poor results last month--but we may have the Fed in trying to drive rates
lower on the long end of the curve---we shall see


Wild Week Ahead---Record Low Interest Rates Likely

September 5, 2011  11:30 pm

While there are only a couple economic reports out this week in the U.S (ISM Non Mfg Index on Tuesday and Wholesale Trade on
Friday) we expect some huge volatility in the equity and debt markets.  The basis for what we believe is simple---the realization by
fools (actually they all themselves economist) that we are headed for a protracted recession in the quarters ahead and the
President and the congress have no real idea what the hell they are doing (and the FED can't do it alone).  We also believe the
President will announce a jobs program on Thursday night that is nothing more than a giant welfare program--instead of doing the
obvious which is working with corporations to repatriate foreign earnings and use portions of it to create jobs--as well as chopping
corporate tax rates way down (while closing various loopholes).

Additionally we think that Europe has done nothing productive to solve their debt issues and we are close to an implosion of
markets there as they realize they are totally screwed.

All of this turmoil is going to lead to rates on the 10 Year Treasury that have never been seen--for this week--maybe 1.7% (We are
looking so much like Japan from 20 years ago it is scary).

What is the answer for the week?  While there are many tempting MLP's out there the only safe place this week is the quality issues
we have written about time and time again below.  We continue to look to move the High Yield Model further into better quality on a
short term basis---but we will do nothing with the Quality and Blended Model Portfolios as they have performed superbly through the
turmoil (although if the highest of quality issues go on 'sale' we would buy some).


Jobs or No Jobs?

September 1, 2011

The time has come for what will very likely be a massive over reaction to whatever employment numbers we get tomorrow (Friday).  
Of course we believe the numbers will be relatively weak--likely having jobs created in the private sector and about the same
number lost in the public sector---but in truth we have NO real idea---and 1 number doesn't really matter.  If it is poor or at best
neutral we would get what we expect---if it is good we would be happy--but not convinced.  We want to see trends--multi month no
matter what the economic statistic.

In the end we aren't doing anything between now and tomorrow--what can you do?  Just be prepared with the quality of portfolio that
you think is appropriate.  Holding high quality we have been more than satisfied and we are looking forward to the months ahead.

We would suggest that an investor simply sit tight through tomorrow--take the long weekend to ponder positioning-let Tuesday
come and go and make no moves prior to next Wednesday


Consumer Confidence Collapses

August 30, 2011 noon

Unfortunately, as we expected would happen, consumer confidence has tumbled hard--we think because of the lack of confidence
in the government, the government downgrade and the wild movements in the equity markets.  Going from 59 last month--and way
past an expected 52 -- all the way to 44 is a true collapse and the employment numbers later this week will likely confirm the bad
mood of the country.

While somewhat lower fuel prices is helpful we believe that the future retail sales and home sales are heading into the tank.  The
President and all of congress are to blame for this -- and if they don't understand it they are bigger damned fools than I thought (well
actually I know they are damned fools--and very big ones at that).

Additionally there is plenty of blame to go around with the SEC and other regulators as they allow the blatant market manipulation to
destroy any confidence that individual may have had in the equity markets.
What is 'The Yield
Hunter'?

We are not an investment
service--nor are we a
subscription service.

The Yield Hunter
website is simply the
opinion of 1 person (TK
McPartland) who has
been investing for almost
40 years.

There are not really many
good websites for income
investors--unless you pay
large subscription fees
(and then who knows
what you are getting).

We highlight many
securities that we like and
buy ourselves.  
Additionally we run some
'Model Portfolios'-- testing
some ideas such as 'buy
and hold'--'High
Yield'---etc.

We do not recommend
securities as everyone
has their own
needs----and we are not
licensed investment
advisors.
  Updates/Changes/Issues

January 26, 2012 - Added 5 more Master
Limited Partnerships to the MLP Page.

January 23, 2012 - added 4 more Master
Limited Partnerships (MLP's) to the MLP page.

January 23, 2012 - corrected High Quality
Income Model results for 2011--results
lowered by .3%

January 21, 2012 - Added 5 more Canadian
Income Isses to the Canadian Income Issue
page.

January 19, 2012 - Started to add links to the
US Royalty Trust page for terms of each trust.

January 19, 2012 - Google Cloud bogging down
on a sporadic basis leaving charts 'hanging".

January 18, 2012 - added 3 more Canadian
Issues to the Canadian Income Issue page.

January 17, 2011 - added 3 more Canadian
Issues to the Canadian Income Issues page.

Janaury 13, 2012 - added 3 more U.S. Royalty
Trusts to our listing.

January 11, 2012 - added another Canadian
Issue as well as another MLP.

January 9 , 2012 - added 3 U.S. Royalty Trusts
to our listings

January 8, 2012 - added 5 Master Limited
Partnerships to the MLP listings.

January 5, 2012 - removing $100 issues from
Preferred Stock lists.  They seldom trade and
the Google cloud only allows a limited number
of formatted cells on a spreadsheet--by
removing the $100 issues we can add more
data for the $25 issues.

January 5, 2012 - adding more prospectuses
and company website links to preferred
shares.  Don't know if we will live long enough
to complete this task.

January 4, 2012 - we have added numerous
Master Limited Partnerships to the list.

December 23, 2011 - Added New Page
--Preferred Stocks of REITs

December 23, 2011 - Added 3 additional
Canadian Income Issues

December 21, 2011 - Corrected High Quality
Portfolio reflecting a called Public Storage
issue

December 19, 2011 - Added 3 additional
Canadian Income Issues

December 13, 2011 - Added 5 additional
Canadian Income Issues

December 13, 2011 - Issues with the Google
Cloud not loading current quotes etc.--waiting
for Google to fix.

December 9, 2011 - Nicor merged with AGL
Resources on Utility Page

December 2, 2011 - Updated and added to
Canadian Income Issues.

November 29, 2011 - Updated Shipping Stock
dividend information

November 22, 2011 - Added page for Monthly
Paying Preferred Stocks

November 19, 2011 - Updated distribution
amounts for Master Limited Partnerships

November 4, 2011 - Increased font size on
Exchange Traded Debt Pages (for us old folks).
 Will increase all pages in the next week.

October 28, 2011 - Reconfigured Preferred
Stock By Yield to Include Daily Price Change
and 52 Week High and Low

October 11, 2011 - Updated REIT Distributions
and corrected some REIT website addresses.

October 5, 2011 - Added some Canadian Issues

September 30, 2011 - Updated Model Portfolios

September 28, 2011 - Started adding Trust
Preferred Shares with Prospectus Links

September 18, 2011 - Updated Utility Dividends

September 9, 2011 - Updated U.S. Royalty
Trust Distributions

August 31, 2011 - Added Chart Links to
Preferred Stocks

August 28, 2011 - Added Chart links to Utility
pages

August 18, 2011 - Added  Chart Links to
Exchange Traded Debt Issues

August 12, 2011 - Added  Chart Links to REIT's

August 10, 2011  - Reviewed and updated
Shipping and Transportation issues.

August 6, 2011 - Added  Chart Links to Master
Limited Partnerships

August 5, 2011 - Added  Chart Links to U.S.
Royalty Trust Listings
Seeking Alpha Certified
               New Issues

February 7, 2012 - Added New Issue for
Regency Centers 6 5/8% Cumulative
redeemable preferred stock (ticker:REG-F).  
Shares should trade within 30 days.

February 2, 2012 - Added New Issue for
Campus Crest Communities 8% cumulative
redeemable preferred stock (ticker:CCG-A).  
Shares should trade within 30 days

February 1, 2012 - Added New Issue for Realty
Income (a REIT) of 6 5/8% Monthly Pay
Preferred Stock (ticker:O-F)

January 25, 2012 - Added New Issue for
Gladstone Commercial (a REIT) 7 1/8% Term
Preferred Stock (ticker:GOODN). Shares
should trade within 30 days.

January 22, 2012 - Added New Issue for Excel
Trust--8 1/8% cumulative preferred Stock
(ticker: EXL-B).  Issue will trade within 30 days.

January 20, 2012 - Added New Issue for US
Bancorp 6 1/2% Fixed to Floating Preferred
Stock (ticker:USB-M).  Issue will trade within
30 days

January 13, 2012 - Added New Issue for
Hospitality Properties Trust 7 1/8% cumulative
preferred Stock (ticker HPT-D).  Issue  will
begin trading within 30 days

January 11, 2012 - Added new issue  PS
Business Parks 6.45% Preferred Stock (ticker
PSB-S).  Issue will begin trading within 30 days

January 9, 2012 - Added Public Storage 5.9%
Cumulative Preferred Stock to start trading
this week sometime.  Ticker is PSA-S.

December 12, 2011 - Added First Niagara
Financial Group Fixed Floating Rate Preferred.
Ticker FNFG-B.   Issue has an initial rate of
8.625%.

December 5, 2011 - Added New Issue of
Preferred Stock of Gladstone Capital.  Ticker
GLAD-A.  This issue has a coupon of 7.125%
paid MONTHLY.

December 3, 2011 - Added New Issue of
Exchange Traded Debt of Aviva plc.  Ticker
AVV.  This issue has a coupon of 8 1/4%.

December 1, 2011 - Added New REIT issue
Stag Industrial.  Ticker STAG