[Opening Position in Alesco Financial (AFN)]
Dear Member:
Some time ago, a subscriber wrote me about Alesco Financial (AFN) describing its high dividend (around 33% annually at current prices and paid on a quarterly basis). The company is a specialty finance REIT and has now broken above the 20 day exponential moving average. The next $0.25 dividend is scheduled to be paid on 4/10, but the stock has already gone ex-dividend so it is too late to get that payment. Though trading around $3, the company announced a book value of $5.40 a share which essentially means that the break-up value is more than the current price of the stock. When declaring the recent dividend, the CEO is quoted as saying: "...and we believe investors should anticipate that the dividend for the remainder of the year will remain in the range of $0.25 to $0.30 per share per quarter."
I am placing an order to buy shares of AFN at a limit of $3.05.
DISCLOSURE: At the time of publication, I do hold shares of AFN.
Sincerely,
Bill Kraft
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