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Out It Goes–Compass Diversified

On June 8th I wrote a little dab on Compass Diversified Holdings 7.25% perpetual preferred (CODI-A) as I made a purchase on the shares.

I expected it to go from the $25.30 area up to around $25.80 by the ex date which is on 7/14/2021.

Today the shares are trading around $26.53–lots of folks want the dividend I guess.

I sold my position last week–obviously leaving some money on the table. I was looking for a 2% capital gain when I bought it and instead took darn near 4%. While it may/may not have been the right thing to sell my position I pretty much allows stick to my plan which was to just get my 2%–I over stayed my plan, but will see what happens after the ex-date.

6 thoughts on “Out It Goes–Compass Diversified”

  1. Not sure why people are hanging on to the A or B issues. According toTDA they are both callable.

    1. ra – If being callable in of itself were a reason not to own, one would be hard pressed to find preferreds or baby bonds to buy at all. Sure it could be done, but the universe of possibles is minute comparatively speaking….

    2. Are they callable? Per QOL, and the linked prospectus, call/float starts 7/30/22 for A, and 4/30/28 for B. (Exception for “tax redemption event,” which I gather means change in how the co. is taxed, other than a partnership??)

  2. I have a quick hook, often selling “too soon”. As long as I stack consistent profits my strategy is working.
    “Nobody ever lost money taking a profit.”

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