1. Sold 100 DRAD: (see Disclaimer): Some of my Lottery Ticket purchases work better than others. I sold 100 DRAD at $2.14 this afternoon, purchased at $1.24 in June: Bought Lottery Ticket 100 DRAD I mentioned in an earlier post that I would likely be a seller in the event the share price crossed the $2 mark. What is a Birther?/CIT More on SIMG & DRAD Some would say why bother with these lottery tickets. My response is that I am almost a $100 richer due this lottery ticket purchase of DRAD shares, almost a double in under two months, and the RB can not do any harm focusing its attention on these selections.
2. Pared BWX: (see Disclaimer) BWX is an ETF containing international government bonds. In a prior post, I mentioned that I would pared the remaining shares of the first lot purchased when BWX crossed $56. This was done late in the afternoon at around $56.25 The first part of that lot (50 shares) was sold when BWX crossed 54, selling those shares at $54.3. Afternoon Comments 6 5 09/Dollar Mounting a Rally/Bonds in a Funk I will not buy those shares back unless BWX falls below $51. As explained in that prior linked post, I am using the movement of the Dollar Index in an effort to manage the currency risk of holding international bonds. The dollar had a bad day today, and the Dollar INDEX (NYBOT:DX) moved closer to 78. The bonds contained in BWX will be very sensitive to the movements of the dollar. As the dollar has lost value recently, the value of the international bonds increased in value for a U.S. shareholder of BWX. Conversely, if the dollar starts a broad based rally and moves back up to say 86 or 88 in this index, I would expect BWX to be falling in price. There are two risks with international bonds. First there is the currency risk which I am attempting to manage in the fashion described in this post and elsewhere in this blog. The second major risk would be a rise in interest rates that would cause these bonds to lose value in their local currencies. I will take the second risk in my remaining shares, since these bonds serve a purpose in my asset allocation plan as a non-correlated asset class. International Bonds as a Non-Correlated Asset
The two sales recently made in BWX were at a profit. They were also my highest cost shares. So, using FIFO accounting, I have lowered my cost basis for the remaining shares, with the last open market purchase made at $47.35.BOND ETFS BWX AND TFI I am reinvesting the meager dividend paid by BWX to buy additional shares. I also own WIP, a smaller position, and I am not managing the currency risk on it. Again, I will not sale what I currently own. I will start to buy back the shares sold when and if BWX falls below $51.
3. Added 100 JQC at $6.31 (see disclaimer): JQC is a closed end investment company. I last discussed this CEF back in early October when I made a purchase at $4.3. AEB AND JQC I also bought some AEB at $5.5 on the same day. ( I raised my position in AEB to 350 shares but I did not make anymore purchases of JQC after that post in October.) The current discount to NAV for JQC is around 19% as of 7/30/09 according to data at the Nuveen site: JQC - Nuveen Multi-Strategy Income and Growth Fund 2 The current dividend yield is around 9.5%. MarketWatch.com Quote Dividends are paid quarterly. This is a leveraged fund which is one reason why I stayed away from it during the recent troubles. JQC - Nuveen Multi-Strategy Income and Growth Fund 2 The fund owns mostly preferred and debt securities, listed by Nuveen at around 61% of the portfolio and 33.4% consists of equity and convertible securities. The remainder is in odds and ends. I also changed my reinvestment option to buy more shares with the dividends. I am under water some in this holding and I am merely attempting to dig myself out. My total exposure is less than 3 grand.
4. Ariad: This is a link to a couple of articles in Bio Health Investor about the recent Ariad news:
Biotech Biotech I would not have bought 100 shares on Wednesday at $2.55 if I had known about Merck's decision.Bought Another 100 ARIAD Ariad Discloses Information from Merck ARIAD UPDATEAt least, I may be able to recoup some of my loss by including those 100 shares in my next Roth conversion. I will be interested to see if the funds affiliated with the firm named in this SEC filing did more selling after dumping a lot of stock on July 27, 28, 29, selling into the news Ariad released earlier in the week that caused its stock to spike ( see page 10: sc13da107422ari_07282009.htm)