I’m on Seeking Alpha Home Page

This weekend, Seeking Alpha selected me for their “Spotlight on SA Authors”. http://seekingalpha.com/

I recently added an article on MSD, an Emerging market closed-end fund:


Recently there have been several rights offerings by Gabelli:

GDLXR: Rights offering for new Gabelli Deal Fund preferred stock at $50.00

GRXRT: Roghts offering for new shares of GRX at $6.50

GGTRT: Rights offering for new shares of GGT at $7.00


Rights are Trading for Two Gabelli Rights Offerings

Rights for two Gabelli offerings are trading now:

GDLXR: Rights to buy  the GDL fund Preferred B.

GRXRT: Rights to buy the GRX closed-end fund at $6.50.

Recent Articles on Seeking Alpha

How to Use a CEF to Buy an Open-end Mutual Fund at a Discount

Blackrock MuniHoldings Investment Quality Fund: A Solid Core Muni Bond Holding

Helios Strategic Income CEF: Good for Tax deferred Retirement Accounts

NXR: A Good, Unlevereged Muni Bond CEF

Are Investors Overpaying for the Japan Smaller Capitalization Fund?

Two Rights Offerings from Gabelli

Last week there were two rights offering that went “ex-rights”. :

– Gabelli Health Care &Wellness (ticker: GRX): Three rights will enable you to buy one share at $6.50 which is considerably below the last closing price of 7.44.

– GDL Fund Preferred B shares: The owners of the existing A preferred shares will receive rights to purchase the new B shares at $50.

I am participating in both of these rights offerings.

I recently published some more articles in Seeking Alpha:

1) Article on the EXD closed-end fund which uses an interesting multi-strategy approach. I think EXD could be a good buy if the VIX ever goes over 30 again.


2) article on DDF, a conservative income play available at a decent discount to NAV:


Two more articles on Munis on Seeking Alpha

I added a Seeking Alpha article with a detailed analysis of NBB which invests in “Build America Bonds”- good for IRA’s. A bill has been introduced to reinstate the Build America program, but the chance of passing seems pretty low.

I wonder about the politics here. Many retired senior citizens are large municipal bond holders and are Republicans, but the Republican party seems more concerned about the Tea Party wing. But a high percentage of seniors vote. If the muni bond holders vote their wallets, they may switch to the Democrats.


There is another article discussing whether stories on Jamie Dimon and Vanguard may have signalled a bottom in municipal bond prices.


Mid Caps Continue their Outstanding Performance

At one time, I used the S&P500 as a quick “default” investment when I needed to invest some cash into equities. But in recent years, I have started using midcap stocks.

The S&P Mid Cap 400 Index continues reaching new all time historical highs. Unlike the S&P 500, it has surpassed the highs of October, 2007. I took a look at the market performance of three liquid ETFs from the highest closing date of the S&P 500 (October 9, 2007) until today using dividend adjusted price data from Yahoo Finance:
Ticker       Type        10/9/2007        01/26/2011         %change
SPY          Large-Cap     146.30                  133.11                           -9.0%
IJH            Mid-Cap         88.21                     96.86                          +9.8%
IWM          Small-Cap    80.96                      82.07                         +1.4%

New Seeking Alpha Articles

I’ve added a few more Seeking Alpha articles:

1) Article on VGM which is a high yielding municipal bond closed-end fund. VGM yields over 8%, is a little riskier, but still holds mainly investment grade bonds.     http://seekingalpha.com/article/249002-invesco-vk-investment-grade-municipals-good-holding-with-taxable-equivalent-yield-above-12

2) 2010 Closed-End Fund IPO Analysis: Similar to last year’s blog article for 2009 issues. Again the new IPOs underperformed. http://seekingalpha.com/article/249706-2010-closed-end-fund-ipo-analysis

3) Bill Gross Recent CEF Purchases: Highly Impressive Performance:


Now that we have passed the favorable “turn of the month” period, it will be interesting to see whether the bull market can continue its advance. My guess is we may see a small pullback, then resumed strength later in the month.

Odds and Ends

There is a new Seeking Alpha article on a NY State municipal bond fund- NVN


The shares have been distributed for the ZTR rights offering. We received complete fills on the oversubscription privilege for five times the amount of the rights at $3.34 per share. It appears that a very low percentage of ZTR shareholders participated in the rights offering, and most of the shares sold were to oversubscribers.