Dumping VIASP

VIASP: Sold All Shares (0.67%)

Short Version:

VIASP is a preferred stock.

The price has been in decline for 2 weeks based on the release of a Form 8-K.

I held a small position (0.67% of the Portfolio) and am selling it immediately.

Longer Version:

I bought VIASP in September 2023, and the price has been volatile due to low trading volume, and uncertainty surrounding the CEO’s plans to take the company private. I’m down 8.6% on the price, but the 16% yield brings the total return to a slight positive. I’m quitting while I’m ahead.

Wild price swings for VIASP have become the norm, and it may recover (again). I can’t predict which direction the price will move in the future, but I am concerned about the lack of transparency regarding the privatization, and the CEO’s intentions for the preferred stock going forward. 

The recent market correction was caused by confusion around an SEC filing of a Form 8-K dated June 27th, 2024, that gives preferred shareholders the option to accept a ridiculously low price of $8.07.

If you’re a fan of this preferred stock, there are opinions for, and against holding it, discussed in the comments section below this (clickable link) Seeking Alpha Article about VIA and VIASP. 

I’ve come to the conclusion that the downside exceeds the upside, so I’m out of this one.

FSCO: Increased from 1.72% to 2.29%

FSCO offers more diversification and transparency. It’s a Fixed Income Closed End Fund focused on senior secured loans and corporate bonds. FSCO is currently trading at a 9.6% discount to Net Asset Value (NAV) but that discount is shrinking.