Friday Addition Edition CEF Activism and Takeover Artists

I had a discussion this morning about the future direction of the stock market+ with an old friend. He is quite bullish based on the hope for a $1.9 trillion stimulus package and an infrastructure bill's eventual passing. I get that and talked about it yesterday in the Banking on Profit Weekly Update. This has to happen, and it has to happen fast to support the economy.

Will it be enough to justify the current valuation levels in the stock market?

I don't know.

Many bulls like to make the interest rate argument. While it's true that low-interest rates can justify higher valuations, it is also true that, as Meb Faber pointed out this week, we have never had this combination of low rates and high valuations.

I don't think anyone has a clue what the market will do in the rest of 2020. This is uncharted water for stock prices.

Rather than torture myself trying to guess the unknowable, I will focus on what I do know.

Bulldog Investors filed a 13D concerning The New Ireland Fund last month. He attached a letter to the fund's management that said, "Based upon the wide discount at which the Fund's shares trade, we can infer that there is just insufficient investor interest in a small closed-end fund with a relatively high expense ratio (of around 2%) that specializes in Irish equities. Since other measures to narrow the discount have been tried and failed to narrow the discount, we think the time has come to afford shareholders an opportunity to realize a price for their shares that is at or close to NAV by converting the Fund to an ETF or dissolving it."

The fund trades at a discount of almost 20% to NAV today. A conversion or liquidation could produce a ...

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Friday Edition-Buying High

It has been an interesting week, to say the least. The whole GameStop (GME), Redditt, and Robinhood saga has been one of the most fascinating events I have ever seen. The WallStreetBets Redditt group has gone from 1.8 million members ...

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Friday Addition Edition- Buying High

It has been an interesting week, to say the least. The whole GameStop (GME), Redditt, and Robinhood saga has been one of the most fascinating events I have ever seen. The WallStreetBets Redditt group has gone from 1.8 million members ...

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Friday Edition-Rational Liquidation Value

Today I am going to share a method that one of the two best ways for individual investors to make money in stocks. I am talking big money, money that causes George Soros to blush with envy. If you put ...

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Friday Addition Edition-Rational Liquidation Value

Today I am going to share a method that one of the two best ways for individual investors to make money in stocks. I am talking big money, money that causes George Soros to blush with envy. If you put ...

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Friday Edition looks at 2021 bank M&A

For today's Friday Addition Edition, I am going to stay with the banks. I got a copy of the full KBW Bank M&A report, and I want to share the information and ideas with you. KBW is one of the ...

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Friday Addition M&A Edition

For today's Friday Addition Edition, I am going to stay with the banks. I got a copy of the full KBW Bank M&A report, and I want to share the information and ideas with you. KBW is one of the ...

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Friday Edition

We skipped the Friday addition for the Christmas and New Years Holiday, but we are back with some ideas for you to consider outside just your bank stock portfolio.

I have been focusing a lot on income-generating investments in these ...

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Friday Addition Edition

We skipped the Friday addition for the Christmas and New Years Holiday, but we are back with some ideas for you to consider outside just your bank stock portfolio.

I have been focusing a lot on income-generating investments in these ...

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Comments

Friday Addition Edition

If you have been following me for any length of time, you know I spend a lot of time researching and modeling various investment ideas and strategies. It interesting, often entertaining, and it keeps me off the streets.

I probably ...

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Friday Addition Edition

It has been a hell of a week for IPO's. We saw Door Dash (DASH) flu and Airbnb followed the next day with its own very impressive first-day move.

If you got IPO shares, count your blessings, and take your ...

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Friday Edition Addition

Is it just me, or is it really difficult to get into the spirit of a COVID Christmas?

The tree is up, the outside decorations are out, and the calendar says December. Still, with all the boat parades, tree lighting, ...

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