Trade Alert 2025-06-13

Trades placed:

• Purchased 1,223 shares of PMTW (PMTW) at $24.80.

Note: These are new shares and this is our first purchase. The resulting allocation is about 1.76% of our total portfolio.

Foreshadowing

I wrote about this in a note to subscribers earlier today. That note contains the relevant information about the shares.

As I mentioned in that article, I wouldn't chase if the price jumped. I was hoping we might see prices dip even further, but it didn't happen. We saw some shares go a penny or two cheaper, but nothing really material. As I foreshadowed, I put in a bid for the shares late in the day.

Strategy

The yield to maturity is about 9.49%. Maturity is about 5 years out. This should deliver a reasonable amount of income. If we get an opportunity to enhance our position by trading, that would make it even better.

I may trade this position actively based on changes in yield to maturity and the spread between these bonds and Treasuries of similar duration. Shares are in a tax-advantaged account, which is nice for interest payments and short-term capital gains.

My Execution

Source: Schwab

I had to sell some shares of BIL, one of the Treasury ETFs, to free up the capital for the trade.