July 6, 2015

Long BGB and GM - Short CAT

Blackstone/GSO Long Position Gains Affirmation

I have previously mentioned why I have purchased and am adding to Blackstone / GSO Strategic Credit (BGB):

"I'm buying the Blackstone/GSO Strategic Credit closed-end fund (BGB) with a $16.15 limit in my non-taxable personal retirement account this morning.
The 12.3% discount to net asset value (the NAV was $18.46 a share as of yesterday's close) is close to the widest it's been over the past year. Average discount to NAV over the last 12 months was just 10.6%, while the current yield is 7.8% and leverage is 32%."

Position: Long BGB

Things Are Down Today Down on the Farm

With corn and wheat prices lower, Deere, Caterpillar and the rest of the ag-related complex are following suit.

CAT remains on my Best Ideas List (short).

Position: Short CAT

GM's Sales Stall

General Motors (GM) has missed consensus expectations for its June auto sales.
I've been wrong so far about going long on GM, but I'm sticking with the position.

Position: Long GM

VIA http://www.thestreet.com/story/13207932/1/general-motors-caterpillar-bgb-doug-kass-views.html