Great week for nrf, especially compared to the macro markets.
Last Fri close = 15.76 vs today at 16.20....up 2.79%.
Consecutive new highs and consecutive higher lows.
Close = over 7 yr high.
Last three days, most volume at or over 16. Today, ALL volume over 16.00.
IMO, new floor = 16.
Looks like shorts have surrendered. We'll know with next short interest report.
All the momo, inside and price, is forward.
I don't think we'll hit 17 next week without news, but we are on the way, absent some macro disaster like Ukraine blowing up into war.
Very happy to be very long nrf and will stay that way until something negative happens.
They got a D because the price wasn't at or below the average. I did a dinner trade Tuesday beginning at 15.8015.
I agree Fidelity's way is best for customer because they pay for the drip shares the day they get the cash dividend. There is no using MY money for free. You are right, Ameritrade has the nrf dividend cash now and they won't pay for the drip shares until 3/20, the settlement date for a 3/17 buy. As far as I am concerned, AMTD is stealing (my opinion word) 6 days worth of interest on my money. They will not even show the dividend in my account until they buy the drip shares.
If we get enough participation, we'll see what drippers pay for a buy today. We'll see if today's spike at the open was brokers buying drip shares. I won't see the amtd drip until late Monday or early Tuesday.
I've conducted this drip survey on several high yield companies over several quarters. The differences in drip prices among brokers is really astonishing. Part of the difference is different purchase days......that's just the luck of the draw....was price trend up or down? But the price differences among brokers who buy on the same day is also sometimes astonishing, which leads me to believe some brokers are adding a markup to their cost.
Fidelity buys drip shares 3 business days before the pay date, so today's drip shares at Fidelity were bought last Tuesday. Other brokers, like Schwab and I think Etrade will buy today. Ameritrade will buy Monday, the first business day after the pay date. Even when drip shares are bought on the same day, they are not bought at the same time and price among brokers.
Fidelity takes drip dollars to the market and buys as many shares as those dollars will buy. Fidelity doesn't care what price is paid because whatever it is, that's what the customer is charged to drip. According to Fidelity, all customers who drip are charged Fidelity's average cost to buy the drip lot, without markup. From the results of similar surveys on several drip companies, I suspect other brokers are making a profit off buying drip shares......the same names come up as the highest cost per share.
I drip NRF in two IRAs at Fidelity and one IRA at Ameritrade. This morning, Fidelity charged me 16.0093 and 16.0089 per share to drip today's dividend. On Tuesday, the high was 16.14 and the low 15.79, an average of 15.965. Thus I give Fidelity a D grade on my cost.
If you drip NRF, please post the name of your broker and the price you paid to drip this dividend to FOUR decimal places. If enough brokers are represented, the results will be interesting. All drips are not equal.
I suggest you hold your cash for the offering when we will get a 2.5% or thereabouts market discount.
I think the only reason we have not had the offering since earnings announced is hamo does not have a firm contract on the healthcare deal with a date certain to use about 350 million of cash.
That's why I have been daytrading for dinners instead of holding for flips. I don't want to hold a flip lot overnight because the day I do is the night the offering will be announced. Back in the pre-spin announcement days I would allow myself 4 or 5 flip lots. But now the position is so, so overweight I will only do one or two flip lots at a time. I don't want to eat the market discount on a flipper, so I trade nrf for dinners only, meaning same-day round trip.
More than a dime was there as it peaked at 16.13 following the dive under 16. I got 11 cents (before commission and fees) so the net was a little more than 10.5 cents......enough to pay the taxes and two dinners out.
Afternoon entertainment on an otherwise lousy market day.
Take the wife out to dinner tonight (a total surprise). Then tell her Hamo is paying for dinner and explain your dinner trade. I guarantee she will love it. You might even get lucky.
It is more unusual for preferred to have roc dividends than common because preferred has first dibs on taxable income. Taxable income must exceed preferred dividends before the first penny of common dividends is taxable.
In this case, nrf taxable income was about 17% of preferred dividends paid. Thus, 17% is nonqualifying dividend and 83% is tax deferred return of capital. Count your blessings.
Under 16.03 should be good for a same-day dime if trading patterns of the past couple of days repeat.
Buyers hang back to let sellers beat themselves up chasing a falling bid and then start buying the bargain into the close.
If you buy at least 2,500 shares, a dime is a dinner trade.
1.1 million short, 55.1% of reported volume. I'd bet a decent chunk of that was in this morning's smackdown
This was a spike from last few days.
In the end though, could not stop the incoming tide..
High class waterfront restaurant in Newport. Got a dinner trade Monday and a lunch trade yesterday...both on nrf. Will toast Hamo while blowing both on fine dining. Wife will be grinning from ear to ear over her "free" dinner out.
You already told us you lived off the grid in the boonies so I'm not too surprised at your emu chick. You raise alpacas too?
Got any wild pigs there? I'd like to hunt them someday.
Very strong close to close on a more-than 7-yr high.
While total volume was light by recent averages, most of the trading took place at 16.00 or over and quite a bit at over 16.10. So the sellers who want to take profits at 16.00 or over are being absorbed by buyers who want onto this forward-moving train.
The operational growth momo is positive, which is the most important thing and it is being appropriately tracked by price momo. Ride this train as long as it is moving forward, as the tutes are doing.
That's my point about dates and the huge option play. This short report does NOT include covering with March in the money calls which were exercised around the ex date....potentially 28 million shares. If all these were bought by shorts and all exercised, then 40 million becomes 12 million. We won't know whether or how much those calls affected net short position until the next short interest report.
Short interest at 2/28 settlement date =40.816 million vs 41.347 million at 2/14 settlement date.
Trade date for regular way trades was 2/25 for 2/28 settlement. The 2/25 close was 14.83.....down another buck for the 2/28 shorts who have not covered.
Remember, this does not include the huge volume in March calls just before ex div. Next short interest report will tell us if mass surrender happened with those calls.
62.5 million collected as of 3/7 vs 55.9 thru 2/25.....so 6.6 million in 10 calendar days or 660k per day.
Average per day keeps going up. Working backwards thru supplements in thousands per day:
That's all we need....just keep moving forward. Slower than I would like, but moving forward is the important metric.