I've sold my FE today. I feel relieved because today is the final lesson I need to be fully out of stocks. I'll take my zero yield money market, thank you. At least that won't lose 5% of its value in 3 hours.
good luck to the rest of FE holders. upper management of this company are criminals
I would guess 6 with a 4% 10 year.
But I don't see bond yields anywhere near that level during the given time frame. IMO
It's buying $1,000 worth of bonds and paying $870. You can't argue with the ACG facts. The assets are on sale because fix income is out of favor right now. Next month they will love us again.
My next ACG buy limit is @ 6.90. Nothing crazy, just legging in at lower price points as rates rise. Unlike my stock positions, I don't get upset when this goes down in price. It's just a very practical way to establish a bond ladder
short positions will have the dividend charged to their margin accounts on July 10, the same date long positions will have the payment credited.
SEC scrutiny is all about accounting irregularities. A pending merger on its own merit would not trigger regulatory interest. Calling it normal is like saying someone leaving a bank with a gun and a bag full of cash is routine.
He reaffirmed his commitment to LINE in quite a long speech on CNBC two weeks ago. For all we know he could have exited before today's bloodbath. The little retail guys with their few thousand shares are always the last ones to find out.
I'm essentially doing the same thing. I placed a buy limit order to replace my PFE shares lost in exchange for ZTS. If PFE doesn't trade down to 27 before ex date I'll just pay the market price....don't want to be shortchanged next divy.
I couldn't pull the trigger.... looked like it was going to 7. Would have given me a beautiful average. The monthly cash into my money market is like a mini pension.
oh well, On with the recovery
I saw the ZTS shares in my Fidelity account tonight. Less than 25% of the shares I tendered were accepted for exchange. I knew the offer was oversubscribed but it almost makes it not worth the effort.
The original target date for distribution of tendered shares was July 5. But since offer deadline was extended that puts distribution forward until sometime during week of July 8.
Fed unwinding QE, no longer a question of if, now a question of when. High flying divy plays are falling out of favor very quickly along with share prices. Don't think too much about fundamentals of individual companies. When investor sentiment changes, things get ugly
you get $107.50 of ZTS for every $100 of PFE tendered. Why would you turn down free money? You can always sell your ZTS after the exchange is completed if you don't think its a worthwhile investment.
The market is super spooked by the perceived end game to Fed QE. The 10 year treasury is now perched above 2% and it just FEELS like interest rates are going up, even though I agree with your post that the data suggests otherwise. It's tough to fight a sentiment change on Wall Street, and ACG is the poster child for long duration bonds. Prepare for some painful down drafts in share price, and step up to buy more if it you've got the stomach.
Next stop, 7.50
I have crazy low GTC limit orders on the buy side. I've learned from the numerous mini flash crashes that gifts due indeed exist, especially in thinly traded fixed income funds. But that shouldn't preclude adding ACG at current prices which I feel reflect an outstanding opportunity to take advantage of recent bond selloff.