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Alliancebernstein Income Fund Message Board

  • fredgurken fredgurken Apr 14, 2004 12:47 PM Flag

    BKT at 6.95

    It's lost about a dollar in the past week. At what point does one decide "cheap enough"? My weak understanding of technical analysis suggests it has a way to go on the downside, but in absolute terms it's tempting to buy the 8.5% yield and stuff it in a drawer forever. This assumes of course that BKT can sustain something resembling its current dividend.

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    • One of the reasons I question charting on bond cefs is demonstrated here. BKT has violated its 30 month MA in a significant fashion THREE times in the last three years. It rallied substantially after each violation all the way back through its 10 week MA(now around $7.75). It is my contention that the current value proposition drives its movement entirely. I have added on every dip and lightened up on each rally. More likely to add BKT than anything else on a settling down of volatility here.

      BTW, BKT maintained their divvy throughout the '99-'00 Fed tightening, and increased it in '02 plus a 50% YE special.

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