Monday, November 3, 2008


This is going to be my last discussion on trust certificates for at least a few days.  I wanted to continue the discussion begun earlier today in this post:  Stocks & Politics: Relationships: Trust Certificates for the Same ATT Bond  I will sometimes elect to sell a TC containing the same bond as another TC when there is a serious pricing discrepancy and then buy the higher yielding TC.  For example, I discussed this morning the relationship between three TCs containing the same AT & T bond:  JZE, JZJ and GJF.   If I owned the TC containing the AT & T bond which had a bid of 21 this morning, and an unrealized profit in it, symbol GJF,  I would have probably sold it at 21 and then try to buy JZJ at the current bid of 17.7.    That would have been a too large of a discrepancy to ignore.  I did not have GJF in inventory.   I have done something similar to that hypothetical maneuver with the TCs containing AON bonds, KVF, KVW and KTN (DKK has never been owned among the AON TCs), and the two TCs containing Verizon bonds, XFL and PJL.   In addition to these TCs, it can also be done occasionally with senior bonds from Liberty Media, PKK , PIS and PYL.  Of these TCs discussed in this post, I currently own PJL and XFL, with a limit order to sell PJL in for the day, PKK, PIS, KVW, KTN, JZJ and JZE.     

   I am not a financial advisor but an individual investor trying to navigate my way through a mind field. In these posts, I am acting as an unpaid financial journalist and an occasional ornery political commentator.   I am also aggregating financial news stories that I view as important and providing any reader of these posts, assuming there are more than a couple, with links to those articles, sort of a filtered, somewhat intelligent, free search engine.  Any discussion made by me of particular securities  is not a recommendation to buy or to sell.  Trade at your own risk.  Consult with your financial advisor prior to making any purchase or sale. I will try to identify my sales too but it may take a few minutes after I implement them to create a post explaining my reasons.  The sale may before or after the post.  Before buying or selling any stock, even one recommended by a trusted financial advisor,  please research it and make up your own mind which is what I always try to do.  Research would include reading reports, reviewing financial records, earnings estimates, sec filings and prior earnings releases and news.  In this post, and all others by me, I am merely describing my reasons for purchasing  or selling securities, and the potential pitfalls that I identified prior to purchase or the reasons for a sale.  The securities mentioned in this and all posts written by me may not be suitable for others based on their unique financial position and risk profile.  Always read the prospectus before buying a Trust Certificate, bond, preferred stock or other bond or bond like investments.    

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