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GAB Rights Offering

|Includes: Gabelli Equity Trust (GAB)


GAB rights are trading at about $0.17. seven rights plus $5.75 gets you one share of GAB. ref:

(7 * $0.17) + $5.75 = $6.94/s, about where GAB is trading now.

not much to arbitrage here -- especially if you add in commissions and cost to exercise rights (if any)

note: actually, the rights are currently trading 'when issued'

good luck finding trading symbols, however.

i found GAB RW WI on interactive brokers; GAB-ctrl-rw on thinkorswim; GAB/R/WI on fidelity; GABrw on the nyse-dot-com site; i've also seen GAB.R.W or GAB.RTWI

full disclosure: i am long GAB, will exercise my rights, and plan to buy more GAB.

GAB preferreds look attractive, too (paying about 5%)

Disclosure: The author is long GAB.