12-06-2013, 08:19 PM
I bought O for $39.42, got a couple of dividends and then decided to cut the shares loose at $38.48. Since then, the shares have dropped, perhaps further into value range, so currently have a GTC in at $36.75. At any rate, if the shares are acquired at my bid, they will represent about 5% less cash at risk than when previously held.
I also have been waiting on PBA to drop back to my buy range. I sold the shares in August @$31.75 because of a tax issue, but that has been taken care of by submitting the proper form. When the yield rose back above 5% today, the shares were re-bought for $31.92. The original entry was at $30.66, so still have a buffer from that level and very little damage done by the exit and re-entry.
Yesterday in my more active account, I added FFC as it dipped to its yearly low with stretched discount to NAV. Today added FAX for the same reason. Both of these will likely be fairly short term holdings. I'm not overly fond of CEFs, but they can provide opportunity when the discount to NAV gets stretched to extremes. IMO none are great for long term purchases, but they can provide nice swings for entry and exit, and pay very good distributions while one waits for the play to complete.
I also have been waiting on PBA to drop back to my buy range. I sold the shares in August @$31.75 because of a tax issue, but that has been taken care of by submitting the proper form. When the yield rose back above 5% today, the shares were re-bought for $31.92. The original entry was at $30.66, so still have a buffer from that level and very little damage done by the exit and re-entry.
Yesterday in my more active account, I added FFC as it dipped to its yearly low with stretched discount to NAV. Today added FAX for the same reason. Both of these will likely be fairly short term holdings. I'm not overly fond of CEFs, but they can provide opportunity when the discount to NAV gets stretched to extremes. IMO none are great for long term purchases, but they can provide nice swings for entry and exit, and pay very good distributions while one waits for the play to complete.
Alex