Replay–Snoozers are Losers–Gabelli Comes a Calling

Reader JDubs has just pointed out the trading halt and subsequent confirmation that numerous Gabelli CEF preferreds are being redeemed.

This is hopefully not a big surprise to readers as we covered this a month ago—here. Everyone had ample time to review their holdings and unload them.

Here’s is the scoop–

Gabelli Dividend and Income 6% (GDV-D) will be redeemed on 12/26/2019.

The press release is here.

Gabelli Equity Trust 5.875% (GAB-D) will be redeemed on 12/26/2019.

The press release is here.

Gabelli Multimedia Fund 6% (GGT-B) will be redeemed on 12/26/2019.

The press release is here.

Since the announcement came at the end of the day there will be some blood letting in these issues tomorrow morning–assuming they trade. If they do not trade holders will have to wait 5 weeks to be spanked.

10 thoughts on “Replay–Snoozers are Losers–Gabelli Comes a Calling”

  1. It’s easy to be lulled into a false sense of security by thinking ” Hey, these have been callable for 10 years, what’s the chance they’ll be called now?” Been there and have the scars.

    1. Jerseyvinny–I think a lot of holders have made the choice to hold even with the call risk–I do the same, but not the premium these issues had in the price.

  2. Was anybody able to short these?
    That call would have paid off nicely…

    1. I agree Derek–if folks are holding they should be watching for filings with the SEC.

    2. mcg, how do you know they will trade tomorrow? My assumption is that they will trade but on the OTC market.

      1. Huh? Why would they trade otc? They get halted, call gets announced, next day they trade under the called for redemption symbology on the primary exchange.

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