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Heads Up–Bancroft Fund A1 Preferred Dumped at Close Today (credit rating updated)

Closed end fund (CEF) Bancroft Fund perpetual preferred (BCV-A) took a tumble near the close today (Monday) falling 88 cents on a 966 share’dump’.

Folks need to realize when you put a market order to sell on a stock that average 1,625 shares traded each day you can get badly bruised.

This issue carries a coupon of 5.375% which is damned good for a nice investment grade issue (Moodys A1)–and with a closing price of $25.50 today (after trading as high as $26.46 last Friday) this is as good as it gets. Shares had good ex-dividend a few days 2 weeks ago.

If the drop late today stimulates more selling tomorrow I will be a buyer.

The Bancroft Fund is a fund managed by Gabelli.

NOTE–the issue is thinly traded and most charts are wrong–you should use a chart at your broker (Fido chart is correct).

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