I was planning to discuss this trade sometime in April but have moved it forward to today based on recent developments.
I sold based on a queasy feeling about this company that was developing based on what I knew on 3/15/17. I will first describe what I knew before today and then briefly discuss the news from today.
Subordinated Exchange Traded Bond: $23.65 Down $1.66 or 6.56%
Common Stock AFSI $17.31 -4.30 -19.90% as of 11:27 today
In this case subordinated means ranking below senior unsecured debt. Generally speaking, a subordinated bond would be classified as a junior bond senior only to equity capital.
These transaction occurred last Wednesday.
A. Sold 100 AFSS Shares at $25.28:
Profit Snapshot: +$87.94
B. Sold 50 AFSS at $25.25 Using Commission Free Trade:
Profit Snapshot: +$50.47
The company said today that its financial statements dating back to 2014 should be disregarded: Press Release After Close On 3/16
It is possible that I may buy back 50 of the 150 shares sold. Other than telling investors to disregard previous financial statements which was implicit in the 2/27/17 release, there does not appear to be anything dramatically new in today's press release, a statement made with substantial trepidation given my ignorance on accounting matters and that the company has not issued clean numbers yet. I will have to wait for lower prices since I am now concerned a lot about both credit and interest rate risk.
I classify this security as an Exchange Traded Baby Bond that is part of a larger category of Exchange Traded Bonds.
A failure to perform due diligence only increases what I call "error creep". Stocks, Bonds & Politics: ERROR CREEP and the INVESTING PROCESS