December 14, 2017
Update: Dec 19 Order in at $14.71
Update: Dec 18 We now have a buy order on ISD at $14.72, for today only.
Update: Dec 15 We have a buy order on ISD at $14.69.
We have been watching Prudential Short-Duration High Yield Fund (ISD) for several months. Or we should say watching the price collapse on this thing. BUT…..the discount on this Closed End Fund to NAV is now 10%. This is exactly when you want to buy positions: when they are on sale.
The fund’s duration is a short 1.6 years which is what we want in this interest rate environment. And it pays 7.4%. ISD could drop further so do not be scared out. We are placing a buy order at $14.70 but you can buy anyplace in this range. Here is a description from http://www.quantumonline.com.
FUND DESCRIPTION: Prudential Short Duration High Yield Fund, Inc. is an exchange-traded closed-end fund or a closed-end ETF that is officially described as a diversified, closed-end management investment company. INVESTMENT OBJECTIVE: The Prudential Short Duration High Yield Fund, Inc. seeks to provide a high level of current income. FUND STRATEGY: The Fund seeks to achieve its objective by investing primarily in a diversified portfolio of high yield fixed income instruments that are rated below investment grade or, if unrated, are considered by the Fund’s investment sub-adviser to be of comparable quality. Under normal market conditions and after the initial investment period following this offering, at least 80% of the Fund’s investable assets (as defined in the prospectus) will be invested in a diversified portfolio of high yield fixed income instruments that are rated below investment grade with varying maturities and other investments (including derivatives) with similar economic characteristics. High yield fixed income instruments that are rated below investment grade (commonly referred to as junk bonds) are regarded as having predominantly speculative characteristics with respect to the issuer’s capacity to pay interest and repay principal. Although the Fund may invest in instruments of any duration or maturity, under normal market conditions the Fund will seek to maintain a weighted average portfolio duration of three years or less and a weighted average maturity of five years or less.
Here is an article we found on SeekingAlpha:
The ratings results are in for the full year of 2017 and show that CNN not only came in last place, but that the left-wing network’s primetime viewership eroded by double digits — even as second place MSNBC soared, and ratings champ Fox News held tight.
Fox had an extraordinary year, its second in a row where its total viewers beat not just its left-wing competition in the form of MSNBC and CNN, but all of basic cable. Fox News was not only the number one basic cable channel; its average primetime viewership of 2.4 million was not far behind the Fox broadcast network’s average of 3.5 million.
We are always the ‘last’ to buy any new technology.
Microwave ovens (yeah we are old), color televisions (yeah old), cell phone (old), a home computer (a decade ago), iPhones (few years ago) and now Netflix. The cable companies keep raising the rates and continuous fighting in trying to get lower prices is getting so frustrating.
So we keep hearing about the streaming services ie NetFlix. And we finally give it a try: again late to the party. At least they give you a free month which is really nice. Why not try it out for a month to see if it’s worth a lousy $10 a month.
Well…if you are one of the last to subscribe to NetFlix, like us……get on board. So far, the only series being watched is House of Cards with Kevin Spacey: yeah THAT disgraced actor who has been fired from the final season of Cards. House is probably the best series that we have ever seen on the TV screen. There is only so much time in the day so other programs have not been reviewed. But we look forward to the huge assortment of shows that are available.