As with any security purchase the selling decision is always more difficult than the buying decision.
The new Global Partners (NYSE:GLP) 9.75% fixed-to-floating rate units is the one we are dealing with now. The issue began trading on the Big Board today after trading for a week or so on the OTC Grey market.
At this moment the shares (GLP-A) are trading around $25.42 and have been as high as $25.50. We had bought a small position of 300 shares on the OTC market when they 1st traded and we paid $24.82. This means we have a profit of around 60 cents a share now which is a reasonable profit for a hold of 7 business days.
Originally it was our intention to hold the shares as Global Partners has recently released solid quarterly results and we think that the 9.75% coupon is as good as it gets from a solid issuer, but we are so tempted to exit in the $25.50 area. If we had originally planned to ‘flip’ we would have probably bought more than 300 shares.
All things considered I am going to put in a good-til-cancelled order to sell in the $25.75 area. It may or may not hit that area in the next week or 10 days, but if it did we would be happy to sell and if it levels out in the $25.50 we are happy to hold for the juicy distribution.