Bullboard - Stock Discussion Forum Life & Banc Split Corp T.LBS

Alternate Symbol(s): LFBCF | T.LBS.PR.A

Life & Banc Split Corp. (the Fund) is a Canada-based mutual fund company. The Fund's investment objective is to provide holders of Preferred shares with fixed cumulative preferential quarterly cash distributions and to return the original issue price on the maturity date, and to provide holders of Class A shares with regular monthly cash distributions and the opportunity for growth in Net Asset... see more

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TSX:LBS - Post Discussion

Life & Banc Split Corp > Sold this morning

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Post by Obscure1 on Nov 10, 2022 10:45am

Sold this morning

I took advantage of the optimism in the market this morning over the CPI numbers to clear out the last of my LBS shares. I sold because:

* I think the market's current optimism will be short lived as JPow has so much more work to do to crush the buying power of investors. Unfortunately, the FED doesn't have any other bullets.
* The 2.5x leverage of LBS means any market correction will be amplified
* I think the upward price of the Prefs (currently at $9.94) doesn't make any sense other than as a precursor to another impending Raise which will cause another serious dip in the share price

I think there is a reasonable chance that LBS will be trading around $4 per share next year unless the market somehow decides that it can beat the FED. My money is on the FED winning.

I'm going to miss the monthly income, but the risk/reward ratio of LBS doesn't work for me at this time. I will let this thread know if and when I get back in.

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