RE:RE:RE:RE:Banks dipping againUsually I take profits when the price appears to be to high.
Right now, even though the NAV is relatively high, there are other issues that I don't believe will have them issuing another overnight offering.
I first bought into this trust around the $8 mark, for the distribution/ income.
I bought and sold over the past two years on the relatively predictable swings.
Watching who was purchasing the offerings helps as well. Usually brokerages or institution pick up the Lion's share.
The reason the unit price drops, is because the overnight offerings ''dilute'' what's already there.
Usually, this is just a temporary setback.
I know folks that bought in at the very top, $15.99 and they don't seem to be the least bit upset, while still holding the units.
I got nervous at that point and ended up selling just over $15.
One thing, I don't spend all of the distribution.
I allow the surplus to accumulate in my accounts, if I haven't sold on a swing, just in case I can pick up units on the cheap, which just happened last week.
Even then, the unit price went below my purchase price.
Still, over the past two+ years, I've managed to double my unit count with this strategy, so don't worry about the overnight offerings, or sell as soon as they are announced.
It's very difficult to move relatively large quantities of BK, unless an institution picks them up, which they usually don't do.
I don't know if institutions pick up their units wholesale, like most brokerages do.
It's when the brokerages sell their units that the prices take a hit.