Bought 300 JDD at $10.95/Sold 50 BMLPRJ at $19.25/2010 Realized Gains Regional Bank Stock/Sold HPF at 20.35 in Roth

For the week ending on 9/4, the Labor Department reported that seasonally adjusted initial claims for unemployment decreased by 27,000. ETA Press Release: Unemployment Insurance Weekly Claims Report The consensus estimate was for a 2% decline. However, due to the Labor Day holiday, claims for nine states had to be estimated by the Labor Department.

On Wednesday, the Canadian central bank hiked its overnight rate to 1% from .75%.Bank of Canada increases overnight rate target ...- 2010- Press Releases- Publications and Research- Bank of Canada

Dick Bove, a banking analyst, published a list of 17 potential takeover targets. Reuters Among the names are several that I own, including WBS, RF and SUSQ. (see also Rationale for the Regional Bank Stock Strategy)

1. Bought 300 of the CEF JDD at $10.95 on Wednesday (see Disclaimer): The sponsor's web page for this closed end fund can be found at Nuveen Diversified Dividend and Income Fund. This fund pays a quarterly dividend at the current rate of $.235 which translates into a 8.58% yield at a total cost of $10.95. The fund is a leveraged balanced fund, holding roughly 50% stocks and 50% bonds, preferred stocks and cash. At the time of my purchase JDD was selling at around a 7.5% discount to its net asset value. The daily NAV can be found at the the relevant page at the Closed-End Fund Association or in the preceding link to Nuveen's site.

This is a link to the last filed shareholder's report for the 6 month period ending in June 2010. The portfolio roughly breaks down into equal parts of common stock, variable rate senior loans, emerging market and foreign bonds, and REIT common stocks. I would classify most of the debt securities as junk with a smattering of investment grade rated debt.

I view this 300 share purchase in a taxable account to be a trade. JDD goes ex dividend in a few days.

On 9/8, JDD closed at $10.96 and had a net asset value of $11.87, thereby creating a discount to NAV as of that date of -7.64%.

A history of JDD's distributions can be found at the Nuveen web site.

I have bought and sold JDD in the ROTH IRA and currently own 100 shares bought at $8.4 in August 2009 and later at $9.45. I previously took a profit on 70 shares held in the Roth. Added To AT & T at 24.75/Aegon Earnings/Sold 70 of 170 of JDD/Jobs & Mortgage Applications/Sold 50 RRST at 10.43/Sold 100 IGK at 23.55

2. Sold 50 of the 100 BMLPRJ at $19.25 on Wednesday (see disclaimer): Using FIFO accounting, I sold the higher cost shares bought in August at 18.50 with one quarterly dividend received on those shares. I am keeping the lower cost shares subsequently purchased a few days later at 17.74. This is fairly typical trading for the LB. If the shares fall below $17.25, I would consider buying back the 50 shares sold on Wednesday and then wait for an opportunity to sell the higher cost shares again near or over $19.25. BMLPRJ is a non-cumulative floating rate preferred stock that pays the higher of a 4% guarantee or .75% above the 3 month LIBOR rate: Final Prospectus Supplement (see generally: Advantages and Disadvantages of Equity Preferred Floating Rate Securities). I have been trading the Bank of America equity preferred floaters with some regularity over the past year. I received a good pop one day last year on two of them after Bank of America offered to exchange them for common stock. I had just bought BMLprg at $8.8 before that offer and subsequently sold it at 12.45. (see also: Sold BACPRE AT $15; Bought 50 of BMLPRH at $13.83 Bought 50 BMLPRH at $13.25 ---Sold 100 BMLPRH AT 17.42; BMLPRH vs. BMLPRJ).

3. 2010 Realized Gains/Losses -Regional Bank Stocks Basket Strategy: I have too many names in this strategy to capture the portfolio in one snapshot. The last updated table was published in June: Added 50 EBTC at 10.33 For my own purposes, I want to keep track of the realized gains and losses in this basket strategy, and will add to the following table as new sales are made. The profit figure is after commissions. ST refers to a short term capital gain while LT means a long term capital gain. The following does not include gains from NYB sold in the IRA (+$331.03):

SOLD 50 EWBC at $19.04 Profit: $651.03 LT

Sold 110 WIBC at 10.99 Profit: $331.31 ST

Sold 50 KEY at 8.12 Profit: $98.52 ST

Sold BKMU at 5.93 Profit: $5.15 ST

Sold 50 SNV Loss: -$25.96 ST

Sold 50 OKSB at 13.19 Profit: $301.53 ST

Sold 100 (WL) at $14.13 Profit: $224.38 ST

Sold 50 CVBF at 9.65 Profit: $65.6 ST

Sold 50 PBIB at 14.7 Profit: $13.98 ST

Sold 50 Wain at $18.7 Profit: $483.08 ST

Sold 50 CNBKA 22.92 Profit: $103.58 ST

Sold 50 FBNC at 13.25 Profit $17.58 ST

Sold 50 RNST at 14.91 Profit $22.08 ST

Sold 90 HBAN at 5.83 Profit 139.64 ST & LT

Sold: 50 MI at 7.14 Profit $49.04 ST

Sold: 50 BOFI @ 12.66 Profit $25.08

SSBI @ 6.77 Profit 7.59 ST

Sold SBIB @5.6 Profit 22.91 ST

Sold BOCH at 3.8 Loss 52.9 ST

Sold: 50 HFFC @10.6, 40 WIBC @ 6.8 & 30 EFSC @ 8.97 Profit 39.89 ST

Sold 50 NAL at 12.7 Profit 20.6 ST

SOLD: 100 FSBK @ 10.1 Loss of 11.92 ST

Sold 50 PFBI at 6.46 Loss of $90.41 ST

Sold 151 GIW @ 9.26 Gain of 338.37 ST

Sold 50 SUSQ @ 7.5 GAIN 66.54 LT

Sold 50 BNCN @ 9.7 Loss 34.4 ST

Sold 50 RF @ 6.57 Gain of 143.32 LT

Sold: 150 BCBP @ 9.4 Gain of 98.52 ST
Sold: 50 PFS @ 14.4 Gain of 67.08 ST
SOLD 50 FNB at $10 and $10.18 Gain of 84.25 ST
Sold 50 AF at 14.09 Gain of 30.76 ST
Sold 50 EBTC @ 13 Gain of 46.58 ST
Sold 1/2 PBIB for a Loss Loss of 149.53 

Total: + $ 3,133.37

4. SOLD 100 HPF in the Roth IRA at $20.35 on Thursday (see Disclaimer): HPF was purchased in late August at 19.09 in Roth IRA, and this CEF was ex dividend yesterday. Based on the information at the JH web site, HPF was selling near its net asset value as of 9/8, John Hancock Funds - Closed-End Funds - Daily Prices. Adjusted for the dividend, I suspected that HPF might have been selling at a small premium to NAV when I sold the shares yesterday. The discount to NAV on the day of my purchase was 4.53% based on a $20.10 NAV. Most of my total return on HPF was due to a narrowing of the discount from the time of my purchase. I may buy this one back in the ROTH, or a similar one- HPI, when the discount expands to 5% or greater, provided I am not rationally concerned about a potential spike in interest rate risk at such time. Both HPF and HPI have a lot of long term bonds in their respective portfolios and use leverage.

HPF closed at $20.25 with an asset value of 20.34 per share. So, my guess during the trading day turned out to be correct by 1 cent.

The LB has now created a problem in the IRA by selling a number of securities, raising close to $6000 in cash which will earn nothing in a money market account. Headknocker is not pleased and let the LB know of his displeasure in terms that permitted no misunderstanding. While LB claims to have a plan for that stash, no other member of the staff here at HQ has a clue what the Young Stock Stud intends to do with it. Headknocker would not be pleased with stock purchases in those accounts, though all staff members have now soured on new bond and bond fund purchases. Long time readers are aware that the Young Stock Stud has a natural aversion to bonds and really hates bonds funds, often referring to a bond with the name of some old man's disease relating to the digestive system.

The 30 year treasury bond fell 2 4/32 yesterday and the yield rose to 3.845%. The 10 year note fell 30/32 and rose in yield to 2.762%. TLT, the ETF for the long treasury, fell 1.97% to close at $102.79.