Financial 15 Split Corp T.FTN

Now updated , FTN UNIT changed to a loss of 10 cents

[mouserman]

SO  i have the balance of holdings at 42% CAD and 35% US, and SLF moved up the weightings. It made a difference of a penny.
UNIT NAV to Sept 7 shoud be $16.40
 Very cheap premium at this point at round 6 %.... but it is the general sentiment that is negative on the banks  AND the banking system here. These premiums are shrinking on all the financials splits  , which hold a high % of banks..
THE USD exchange  gain vs CAD helped more than anything else to limit the losses.

[Stwatcher2]

What are your thoughts on DGS . the SP is well below the nav ?

[mouserman]

I like DGS , as they have a much smaller exposure to banks in their very diversified mix of holdings. However in these markets I am more inclined not to gamble, look for steady income,  so am mostly in preferreds and have a small holding in LCS.

[es25]

Is it possible to buy FTN before ex-date and sell it right after to collect the big dividend? Not much of a premium now?

[mtloly]

Of course but that's not very wise since the share price is reduced by the amount of the dividend and you are running the risk of fluctuations in price plus pay broker fees.

[es25]

Seems FTN has hit bottom close to NAV price. BK is being crushed today probaly until it reaches NAV?

[mouserman]

Trick is to buy FTN at a discounted price here, as it certainly appears  they will be able to pay at least one more distribution.... i think the bottom close to being in... with FTN trading at about a 5 % premium. Buying just  the day before ex divvy date , sometimes its hard to get out after , particulary if you have a big position. Of  course all of this conjecture relies on at

[es25]

Just wondering after you sell before ex-date and have a big position what would you do next with your investment ? Do it again next month?

[mouserman]

When i sold off my FTN @  around  $8.75 i went into FTN and FFN preferreds, and collected distributions on those. It didnt add up to quite 50% of what I would have gotten with FTN, but there was no downside to speak of. Still  hold the preferreds. Still not convinced  the market is going to suddenly turn around. Despite the big rebound by FTN commons,( up over 9% in one day) it