Thursday, May 4

The drop in FTR has continued to batter our portfolio – net value was down 1.53% today. This has been our single worst performing day, in a record-setting negative week. Market results were mixed today, but both major indices ended fairly near no change for the day. Crude oil fell, touching a five month low briefly. The dollar slipped, and treasury yields rose.

Elsewhere in our portfolio we faced marked losses as GPP, XLE, and SDLP fell in response to falling crude prices. The bulk of our losses were still attributable to the slide in FTR, but this still would have been a solidly negative day without that.

FTR/PR became an even more attractive prospect today, and we’re actively searching for reasons not to increase the size of that position. New break-even for the position is a target price of $1.08 per share of FTR in June of 2018 (without going out of business it’s unlikely they’ll end up there). Book Value for FTR remains at a strong $3.57/share, the only thing driving off investors (besides the dividend cut) is the continued losses due to rising operating expenses. We’ll have a more detailed report of our outlook complete by early next week.

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