We wanted to quickly highlight some recent buying and selling activity on our part.
On a personal level, and as we reported here, we bought and then sold the new Global Partners 9.75% fixed-to-floating preferred (NYSE:GLP-A) which we had bought on the OTC Grey market during the IPO. We had purchased these shares at $24.82 and as it rose by darned near a dollar in the next 10 days a Good Til Cancelled sell order was submitted at $25.90. In this case we would have moved the GTC a bit higher, but we were vacationing on an island in Lake Superior and had darned little cell coverage and the issue hit our mark. We had believed the sell could have been too early as the share price continued to rise to $26.25, but it has now settled back to $25.90’s. If the issue would settle down by 25 cents from here we would be tempted to get back in the issue. We actually think the current share price is primarily a result of the issue being priced incorrectly and that with dividend accrual over the next 2 months we could see a share price of $26.60 prior to ex-dividend date around November 1.
Additionally we picked up a larger position in the new Gladstone Investment 6.375% term preferred (NASDAQ:GAINL) with an initial purchase of 500 shares at $24.70 and a 300 share add on to our position at $25.10. Needless to say the current share price of $25.38 is very pleasing to us–although we were more pleased that this issue ever sold for $24.70.
Lastly we made a modest purchase of the new Saratoga Investment 6.25% baby bond (NYSE:SAF). We had to pay $24.98 for these shares, which was a bit higher than we anticipated, but obviously there was good demand as shares have now raced to $25.27. Note that we will be adding 200 shares at $24.98 to the Medium Duration Income Portfolio (not added yet).
Further portfolio changes (models and personal) were the loss of the Gladstone Investment 6.50% and 6.75% issues to redemption and we had chosen to sell the 6.25% (GAINM) issue (after capturing the August dividend) as we believe it will be announced for redemption next month.
Obviously with the large positions we held in the Gladstone Investment issues we are left with a large personal cash position which we will need to deploy soon–always a challenge.