Dividend 15 Split Corp T.DFN

Buyers

[AnEducator]

I suspect many of the buyers these last few days were simply covering their short positions. The volumes have been abnormally large. Fewer short positions should result in less support, although many of the sellers have likely also been short sellers.

The next short position report will shed some light on this. Unfortunately, it will not reflect the positions beyond April 15th, when so much volume has traded.

[amugsgame]

I'm short and tempted to play the strength / weakness game of the market today since we all know what the Quadravest announcement will mean. The only hesitation is that, in the past, there have been a few occasions where TD had no availability of shares to short.     

[AnEducator]

I also have a short position on this stock, but I am not entirely sure what type of reaction to expect on the missed dividend simply because all those who have been paying attention know by now that barring a miraculous turnaround, there is no positive announcement forthcoming this month. This is especially true after the NAVs were posted yesterday.  In any case, I am counting on a further

[amugsgame]

I think you may be overestimating the awareness of many holders of DFN. My experience in the past is that shorting it when it is near the $15 level (and when you and MM do such a great service in providing the NAV updates) seems as close to insider trading as you can get while staying legal. I think many who buy the units have no idea of the  $15 NAV requirement, only see the dividend % and

[marketsense]

Yes,  I tend to agree on that point.  There are many retirees of which I am one of them who are desparate for income.  Consequently,  they can easily fall into the trap with such an enticing dividend and payout ratio without realizing the full picture.  Sadly  their understanding of how these splits trade is lacking.  Understanding the implications of premiums

[Mmb060]

Look to the preferred shares for a more stable source of income.   ClassA is growth ( not income)

[amugsgame]

The DFN commons are good to trade but the Prefs have a piddling yield compared to FFN, FTN and BK Prefs.

[chessplayer]

They are redeemable fo 10$ on Dec 1. Therefore they are a better short term deal than the prefs you mentioned considering the capital gain on the discount that they are trading on 

[flamingogold]

Very true. Checking my Waterhouse account fundamentals page it shows distribution rates for LFE 31%, DF 28% and DFN 25%... none of which will be paying this month.

[AnEducator]

You guys are correct. I am always surprised at the market movement on news that ought to have been fully expected. I certainly hope prices drop to discounted levels in line with other splits.