30DD Update 15-11-17 | Investors Alley

30DD Update 15-11-17

Trade Entry for KCAP Financial

Today I am making a buy recommendation on KCAP Financial Inc. (NASDAQ: KCAP).

KCAP is one of the stocks I track for swing trade opportunities between ex-dividend dates. The share price is now (at about $4.70) trading 10% below the closing value on the last ex-dividend date on October 9. Earnings have passed, so there are minimal potential negative factors between now and the just before Christmas ex-dividend date.

KCAP should announce the next dividend on or around December 17, with the ex-dividend a week later. With recent trades, I have set the target too high, resulting in missed opportunities to lock in profits. With this trade we will go for a moderate 4.0% gain, which will give a nice annualized return if it is reached before the next ex-dividend.

Trade recommendation: Buy KCAP up to $4.75. Target is a 4.0% gain from today’s closing price. Sell no later than the day before the upcoming ex-dividend event.

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