We closed out all of our positions in one series of preferred shares today, earning an excellent return for a relatively quick holding period.
Average total returns: 16% to 22.8%. On average, nearly 19%.
Average holding period: less than 90 days.
Preferred share. Lower volatility and risk than the common shares.
Multiple purchases mean subscribers have several opportunities to follow us into the trade.
That’s a slam dunk.
Shares rallied most of the way out of our bullish range. Looking at the discount to targets, shares were trading at about 98.25% of our target price.
It’s technically a discount (of 1.75%) to our targets, but out of the other 44 preferred shares we cover, 30 of them carried larger discounts. That’s just over 2/3rds. When we’re looking at ways to reposition the portfolio, we’ve got to consider taking substantial gains on a position that moved to trade at a smaller discount to targets than 2/3rds of the shares we cover for that sector.
In general, it’s been an excellent time for investors throughout the market. While we earned a massive return on this position, most shares are up significantly. There were very few preferred shares near our price targets a month ago.
Precise details are available for paid members below.