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).

19 thoughts on “Heads Up–Bancroft Fund A1 Preferred Dumped at Close Today (credit rating updated)”

      1. Good morning and happy new year!
        Was wondering if you could enlighten me on MS-L
        $4.875 coupon and they declared a dividend yesterday of .17?
        Thanks in advance

        1. New issuance…Partial first dividend to get it on cycle. It will start its full quarterly divi of .3046875 next payment cycle.

  1. I was too slow to pick some up this morning – the ask is at 26.29 now. Might put a limit buy order in anyway though.

      1. Hi vg–corrected stock summary page where I had Aa3, but left the credit rating list where I had A1. Thanks for the heads up.

    1. VG – As a suggestion, do not ever take what quantum says on any rating to be gospel. Their ability to keep their ratings info up to date is their weakest link and if ratings are important to you, always take what quantum provides as a starting point and then go directly to the source… Quite frequently, quantum is wrong…. In the case of BCV-A they are PROBABLY accurate, however, if you take the listed CUSIP number of 059702209 to Moody’s site and search, you will come up with no rating whatsoever. If you search for Bancroft Fund Ltd you will come up with a 2/22/19 periodic review that confirms an A1 rating for its overall rating, but I cannot confirm an actual rating still in existence for the specific preferred…. Having said that, Fidelity does show BCV-A with Cusip 059702209 as carrying the A1 rating, so I don’t know where the screw-up is, but the point I’m making is more generalized – do not count on a rating as listed at quantumonline to be 100% accurate without cross checking at the sources such as Moodys or S&P.

      1. Yes 2WR and they even say that they are not all correct. I find the same thing–it is impossible to keep up–I always says use it as a guide and then go to the source i.e. Moodys etc where a free account gets you in.

      2. 2whiteroses–you’re right, of course. But BCV-A was supposedly rated Aa3 by Moody’s at the date of its IPO, so a possible downgrade seemed significant.

        1. VG–not a problem mentioning a change–no one can keep up with ratings changes so I went to Moodys to verify which is where I get ratings typically. I had it A1 in one spot and Aa3 in another–just want it as correct as possible.

          1. Tim – But normally you can find the Moody’s rating on their site by Ratings/Debt List or by searching by specific CUSIP, but you can’t (or at least I couldn’t) on BCV-A’s cusip now… As it turns out on BCV-A quantum has the issue rated under a different cusip number than what quantum has… They have it listed under 825169603 not 059702209. Another mistake by quantum? or maybe a cusip change they’ve now caught up to? I have no clue. As a couple of true philosophers once said:
            You can’t always get what you want
            But if you try sometimes, well, you just might find
            You get what you need

  2. Thanks Tim, I own BCV-A since IPO.. QDI too.. Will keep an eye on it this morning as I wouldn’t mind picking up a few more.. HNY.. I’m in the shopping mood

  3. Always a good idea to place out-of-the-money limit orders on low volume stocks. Just in case some fool places a market order.

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