250 shares of Enbridge Energy Partners LP sold… already

On 14 May I bought 250 shares of Enbridge Energy Partners, but only 3 days later I already sold them again.

Enbridge did announce the plan to offer 0,3083 Enbridge shares for 1 unit of Enbridge Energy Partners. This means a premium of zero %. Maybe in the future based on the percentage of unit holders which will vote against he merger there will be a little premium offered. I decided to sell the units and not wait for the closing of the deal. Without the high distributions I did expect to earn the fiscal paperwork is not worth it for me to wait for the chance on an improved merger proposal.

I bought the units at $9,78 and sold them at a price of $10,15. A 3,8% profit.

Sell 200 shares WPG and Purchase 48 shares Enbridge

Today I sold the 200 shares Washington Prime Group which I purchased just about 2 weeks ago. Why? Reuters publiced this article at the 3rd of April.

This article was quoting unnamed sources telling that Washington Prime Group and Namdar Realty are supposedly preparing a bid on retail chain Bon-Ton Stores to save Bon-Ton from banktruptcy. The reason to acquire Bon-Ton would be stay in control to probably be able to more smoothly manage the process of closing the Bon-Ton store to avoid immediant vacancies in their malls.

The Reuters article with unnamed sources was followed up by a publication on the 10th of April by Bon-Ton about a letter of intent received from WPG and partners.

According to the February Investor Update WPG is owning 13 Bon-Ton rented stores. These stores are 0,9% of the annualized base rent.

I personally don’t feel comfortable by the idea that a real estate company is taking over a tenant to keep operating their stores to avoid vacancies. As investor I of course love a management trying to keep the occupancy rate high, but I don’t believe that the management of a real estate company can make a retailer perform better. At this moment I don’t have any information available about the capex / working capital which WPG would put into Bon-Ton.

For me reason to already sell this stock after just owning it for a few weeks. I keep this stock on my watchlist and I will evaluate again to take a position when more facts are available.

My yearly estimated dividend income will drop with $200 as a result of selling the WPG shares, but I don’t feel comfortable keeping this position at the moment.

EDIT:
Just short after selling the shares a court ruling could make it less likely Bon-Ton will be taken over by a combination of Namdar Realty, WPG and asset manager DW Partners. Still not enough information available for me to take back my position in WPG.

I bought 48 shares of Enbridge against a price of $31,98 with the proceeds from the 200 WPG shares I sold. At the start month I made my first purchase of Enbridge shares I now own 90 shares Enbridge.

My yearly estimated dividend income is increasing with $100,54 as a result of this purchase.