zaimoni (< 20)

The Bernanke dazzle fades.

February 25, 2009 – Comments (0) | RELATED TICKERS: FRO , NRO , JRS

Yes, I was blindsided by the stock market response to Bernanke's speech.  The rally evaporated on schedule, a one-day wonder going up in sulfurous steam.

 Considering my own portfolio: 

This caused a downward momentum lockout on FRO [Frontline Ltd].  (Generally, I do not want to assume positions in any stock that has moved more than 1-2% in a day already in either direction.  Downward is trying to time an intra-day bottom with a noticeable bounce; upward is buying in "after the horse has left the barn".)

While I don't care to forecast what the dividend announcement for FRO is going to be (scheduled Feb. 26 2009; last two quarterly dividends were $3.00/share and $0.50/share), $2.00/share would create a momentary yield competitive with Feb. 2009 on the synthetic goo closed-end ETFs NRO [Neuberger Berman Real Estate Securities Income Fund] and JRS [Nuveen Real Estate Income Fund].  Being completely exposed to oil transport (between NAT [Nordic American Tanker] and FRO) would be very tempting then.

[Both NRO and JRS also have an "awaiting announcement" lockout, as this is the season of dividend collapse.  The cash-on-hand for a new position is from being forced out of AOD [Alpine Total Dynamic Dividend Fund] by my dividend-maximizing oscillator, on dividend collapse.  I'm projecting announcements for ~March 1 2009 for NRO, and ~March 2 2009 for JRS.]

Conflict of interest notice: I do hold shares in NAT, but no other stocks mentioned at the time of posting.