Many times preferred stocks are very ‘thinly’ traded–meaning they only trade 1,000 or so shares a day. Other times when a mutual fund or closed end fund make changes in their portfolios they will dump a huge number of shares on the market place which, of course, depresses the price of the stock.
What this means to us as investors is that there are occasions when these large ‘dumps’ depress the share price to the point where the shares are now on ‘sale’.
Below we have all of the $25/share preferred stocks (448 issues) and are sorting them by the current volume compared to the 30 day average daily volume.
We show the current volume–then the multiple of the 30 day average daily volume and then the 30 day average daily volume.
We believe that the “multiple of average daily volume” may tip investors off with a glance of a large fund dump occurring which may present a buying opportunity.
The list sorts each time you load it—data should be 0-15 minutes in age (quote providers say real time–but I never believe them).
WE HIGHLIGHT IN RED all issues with 3X or more volume above the daily average volume.