Dan Plettner's  Instablog

There seem to be a good number of traders who are acting on the belief that the enormous volume change in BIF week came from average readers of a Weekender article, where a portfolio manager picked BIF, referencing a possible narrowing of its discount due to its dissidents.

I am not going to publicly agree or disagree with Mr. Barone's general premise that an underlying battle between the fund and a couple of dissident shareholders will unlock the value...

What I will say is that I disagree with the commonly held belief that average readers caused the volume and thus BIF's move. I won't be sharing all the reasons for my opinion, but I will share this:

BIF on Monday traded about 13.9 times trailing 10 day average.

The other 4 securities recommended traded anywhere from 0.58 to 1.24 times their trailing 10 day averages.

The traders with a contrasting belief to my own about what is driving the BIF volume have had motivation to put on what is called a pair trade -- buying BTF and shorting BIF. Some of these same traders would then likely suggest others to buy BTF instead of BIF, or swap from BTF to BIF on Message Boards... before they close their trade by buying back the BIF that they sold short and selling the BTF they bought long.

Do I have underlying beliefs as to where the volume came from based on my own involvement and my own research?

Yes, I do. If my underlying beliefs are correct, all Boulder Growth and Income Fund Shareholders should benefit. I share my opinion because I'd be saddened to see unsophisticated BIF shareholders get talked into switching to a different Horejsi Fund right now, particularly with the expectation that I'm right.

Do I ever want/hope/expect to sell?

Well, yes... absolutely. I've shared my personal take on the current management group. Some of the articles initially published by Seeking Alpha are available here:

home.fuse.net/danplettnercef/

Also, I have nearly all my eggs in one basket right now... BIF. So I have enormous motivation to diversify.

Have I sold even 1% of my shares so far this week?

No.

Could I sit silently next to my grandmother if she had an idea to buy the sister fund BTF?

Probably not. Although I do hope that someday average shareholders of BTF get an opportunity to sell at or near NAV. Relunctantly, I don't think they ever will.

Again, I have continued my research and I am open to talk to other shareholders who can initially e-mail me at plettner@fuse.net. If you wish for me to reply, please include your contact information and detail as to when you became a shareholder.