North American Financial 15 Split Corp. Pref Shs T.FFN.PR.A

What am I missing?

[primo105]

Why is this stock trading at $9.41?  The chart looks awful too.  I cannot figure out any reason why it is trading here but I cannot bring myself to buy it in size because the market is saying something is off here.

[mouserman]

I have been slowly averaging down here, and you will find that as it nears the redemption date, shorts are forced to cover, and the price gets back very  close to  the 10$ range. Quadravest doesnt want the redemptions forced in the preferreds by low prices.  I can only imagine that some of the UNIT holders are selling off their preferreds to buy back into FFN commons, or IF they

[primo105]

I would think the "efficient market theory" should get to work sooner or later and the prefs will start the journey back to $10..fingers crossed anyway. I suspect we will see this again. Note, the fund extended the term for five years in Feb 2019 (10 months before termination date)  Does this mean a holder had from March to end of Nov 2019 to exercise the special retraction right?&

[primo105]

The share price of the prefs almost certainly must start drifting higher to the NAV as we get closer to retraction date.  If it doesn't, the fund will essentially shutter as the vast majority of investors will retract their prefs and then the commons o/s have to decrease proportionately.  Obviously, in real life this should never happen so the prefs have to get back to NAV as we get

[mouserman]

Yes exactly, the preferreds of nearly all these funds i follow will trade very close or even above the 10$ level once the redemption date gets close. Buying FFN preferreds here gets you a yield of  nearly 8.25 %, and that you will get as long as the fund stays liquid. I believe it will always have some value, but am willing to bet FFN doesnt get back to the 15$ level this year without a