Canadian Banc Corp T.BK

Banks dipping again

[deisman03]

Well it just goes to show how much Canadian banks are tied to commodity prices. 

Oil, gold, copper, silver and natural gas are all down this morning. 

Unless something I can't see is influencing BK's price, it will follow accordingly

[mouserman]

GOLD now up , and the banks are rebounding. Was thinking about taking some profits in BK, but decided it too close to ex -divvy date, and things will likely bounce back later in the day.  Now when the US fed raises interest rates again next week,  we will likely see  another correction in the markets. Still like BK at any rate even in a correction.

[deisman03]

My post was more of a discussion query than a prediction, should have clarified.  There are institutions with large holdings of BK for the income stream and for the most part, from what I can see, they haven't been selling in significant volume, other than when we were over $15.00 In this volatile market condition, it can be difficult to play the swings, especially with trusts like BK

[Eoj123]

Thank you for your thoughts. My question is , how do you deal with or manage the risk of the overnight offerings which always seem to erode the stock price. ?

[deisman03]

Usually 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. 

[Eoj123]

By the sounds of it your prefer cash payments rather than participating in the DRIP program... I'm flipping back and forth on that issue and can't seem to decide which works better. No trading fees is a benefit which can offset a bit of a price overpay, but I'd rather not end up with odd number of shares, for ease of selling... Plus if you sell your holding on any security after the X

[deisman03]

You're right, I've been trading trusts for a long time and they've mostly treated me very well.  The DRIP is fine for those that don't trade in and out on the swings.  I often trade out a day before the ex dis date and buy back in a week or so later at anywhere from 2-5X the distribution amount. (the 5X only happened once) It can and has backfired on me though, so it

[EdPaquette]

Yes I try to swing, but it's mostly backfires this year. I get in a mood that the market will go up or down and trade accordingly.   No discipline, just mood swings. 

[Eoj123]

LOL

[mouserman]

Yes , in these volatile markets i like to go to 90% cash or more after ex divvy date. Has worked out pretty good, altho it does NOT always work, as my crystal ball gets really foggy at times. I did sell off the BK i had acquired at about 13 $ and sold them @ 13.34 average today. Only 7000 shares tho.. still bigger amount than i will get in distributions. Can always buy another bargain if BK doesnt

[marketsense]

Very interesting and helpful post from Deisman.  His  insights are thoughtful and useful in uderstanding more about these trusts and how to play them.  Appreciate the candor and the analysis.