Financial 15 Split Corp T.FTN

Last trade was $7.72

[mouserman]

So the premium a bit larger than what i posted previously, now like about 4.5%

[FatTraderDude01]

this is a little less than half the premium that DFN currently has??? What premium% is healthy for FTN currently?

[Golferman]

I feel between 12-15% is a good healthy premium.... This put the price at about $8.28  -  $8.50. Golferman

[FatTraderDude01]

Thank you GM !!

[mouserman]

Actually DFN has a premium of about 5 % before distributions, and FTN has a premium of 4.5%. BUT the big difference is FTN will still have 2$ of safety over the 15 $ threshhold  after paying out distributions, and DFN will be below the level for distributions to commons AFTER paying out distributions.

[NoShoesNoShirt]

Typically the premium on FTN was usually a dollar. Then at the end of summer and into the fall, one by one someone shorted all the splits with a premium. 

[FatTraderDude01]

How are you calculating DFN premium at 5%? I must have based my calc on a lower DFN true value

[mouserman]

I used the same method for both. Value of the commons BEFORE distributions.

[Golferman]

Suprised it's red today as the NAV is up today and only 3 days left to exday.

[NoShoesNoShirt]

Reason why it's down,  some of FTN'S holders have little faith. Once those weak kneed Lilly livered losers are gone, we will get the melt up deserved by a split with around 2.50 of freeboard above the cut off. 

[Donwaan]

Still lots of unknown unknowns out there. https://www.marketwatch.com/story/jamie-dimon-says-its-a-mistake-to-assume-everything-is-hunky-dory-3737d15d?mod=home-page

[NoShoesNoShirt]

We are in the period of seasonal strength for financials. When that ends in spring, rate cuts start kicking in. 1-2 punch. Victory. 

[Donwaan]

Premature rate cuts could put upward pressure on inflation, Atlanta Fed president warns, first rate cut in July-September quarter. He has recently moved up his projected time to begin reducing rates to the third quarter from the fourth quarter because of the unexpected progress on inflation and economic activity. https://www.marketwatch.com/story/feds-bostic-makes-case-for-first-rate-cut-in-july

[Golferman]

All FTN Bank stocks up big today.... I believe the share price will be trading above 7.85 by end of day.  let's see if I'm right! Golferman