You all are spot on, I think. I've been hesitating, but plan to jump in for a few more shares in a couple days. Thanks for the posts.
That makes sense. I noticed extra high volume recently and this would be consistent with your explanation. Just looked at last year and volume spiked just before div and distribution also. Thanks, good info and gives me a little more confidence in the broader outlook for GIM.
Almost certainly this is tax loss selling, especially ahead of the distribution. If you owned this and it was held at a loss, you would want to sell right up until today to 1) realize the capital loss and 2) avoid the tax implications of a cap gains and income distribution. Since this goes ex div as of tomorrow, I suspect we will see the discount close sooner rather than later as tax loss selling subsides.
Have no idea.
Just got to have faith in your God,the monetary system of America, and perhaps that now(or a little later) might be a good time to pick up some cheapies.
Who can call the bottom though?
This might be the time,but I have yet to go on a buying spree.
Good point about the distribution not being a part of the yield. The yield is more like 5% than 8%. As you point out, the GIM pre-dist price in 2012 was 9.65 and the NAV was 9.53, almost the same. But today GIM is 8.02 and the NAV is 8.67. So the real question is simply "why is GIM trading at such a large discount to its NAV now, when it hasn't since 2009" ??
The "special distribution" is not a yield figure since it is subtracted directly off the share price when distributed
This is down huge for the year. Last year's pre distribution price was $9.65.
Can't sugarcoat a terd Down 17% since last years pre distribution date.
I can't understand why this fund is down, can you? It's selling at or near a record discount, 7.4% to its NAV (XGIMX) and is yielding about 8% including the recently announced distribution. The last time it sold at such a discount was during the 2009 financial crisis and it essentially has not sold at a discount until recently. The quality of its NAV is good, having only dropped about 3% from 8.92 to 8.67 since last year's December distribution. And I think the 8.67 is after eleven .035 dividends. The NAV is holding up very well in the face of increasing interest rates. Do you think holders are not confident about its currency postions? Short the Euro and Yen? Right now the yen bet looks promising, not so the Euro yet though. And there has been some really high volume on recent down days. Does this mean some large holders are lightening up?
Anyway, I'd be interested to hear anyone's take on why this fund is getting hammered. I just can't see the risk right now and lean toward looking at this as a buying opportunity. What say?
Did you buy more today at 8 bucks? I think everyone under the sun knew bonds would be under pressure this year, and probably in the near term. No big surprise. What else would you buy? Dow 16000? no thanks.
Places I put money --
Local Bank 0.25%
Credit Union 1.5%
GE common stock 3.2%
Utility common stock 4.5%
Thanks for the info - I'm happy with this.
all for GIM, lets stand up and holler! Well, there it is. It's only 2 bits, but it's better than a poke in the eye with a sharp stick. I think that makes .6699 total for the year. Based on todays price, that's an ROI of 8.2%.
And so speaks the coward going from one ID to another.
I know exactly what he was talking about. Care to proliferate a bit on your smugness?
I downloaded my GIM transactions and reviewed the numbers with dividends.
Owned since 2006 and added each year.
You are right. I was surprised at how much I have made despite recent price drop.
It's a keeper.
Have you collected Div's? Then why are you sorry? Hold for ten years and add on the dips, you might find you will make some money. The mkt. is full of losers,jumping in and out.