Here I am with two of the people I have the most respect for, along with nokker1. They will not lead you astray so for some of the new people pay attention.
I have a reduced volume of investment capital after paying off my car loan which was working until I hit a snag/investment strategy flaw etc. with CFP. Enough said about that, although I hate that phrase. I am now trying to gain enough momentum to have a few treats in my life for my family. I mean stuff like a better kitchen, etc. Any strong recommendation which will net me a little monthly cash? Best of fortune to all!
I thought that a purpose for buying Cornerstones was to hold and collect divy but then I saw PPS erosion and got out on time.I f I am going to trrade up and down it will be a stock that moves more than 10 cents a day.
I read the Board approved a RS for CFP, CLM and CRF. Would be fun to run in conjunction with the Rights Offering. A RS should benefit the traders long and short but the bag holder will stil be holding the bag.
Nokker, I think you’re getting confused….the divvy for next year will be based on 21% of NAV at the end of Oct.…. they have already announced that ….. and will be adjusted to reflect the split….if they don’t do that….then they will be subject to lawsuit by shareholders and a SEC investigation…..so it would be in their best interest to make shareholders whole after the split….of suffer the consequences……the CLM divvy in 09 reflected that with the split adjustment ….remember NAV had declined due to the market crash by Oct 08 (CLM NAV around +- $2.50 x21% = 0.525 x 4 = $2.10 / 12 = .175 monthly divvy after split)….make sense now?
I was not into CFP than but I do beleive you and that is one more reason to stay out until they declare. If its only 2x like it was you are looking at $8.00 PPS.
if you preset your "Bid" at various prices, such as 1000 shares @3.00, and 1000 shares @3.05, and 1000 shares @3.10, and 1000 shares @3.15, you may get lucky and get some of those low "ask". That's what I do most of the time. Sometimes I even preset to "Bid" @1.99, who knows, someone may want to sell at that pps.
Sentiment: Strong Buy
Just a month ago Emerson Radio (MSN) offered share holders a marvelous opportunity of a .70 dividend and people were terrorized by message board predictions of doom so did not buy the stock and price fell. The company website was drab and not many products, people saying it had lost its biggest market WalMart. Today I looked at the official website and it's beautiful, new, advertising more products toaster ovens and microwaves. Has its market partnerships showing as WalMart and Sears, and KMart. Also online selling Best Buy and Target. I'm sure I would have seen that website before so apparently went up after the dividend over. Maybe they didn't really want people to buy the stock for the dividend.
I agree with you and all along I was posting that PPS is eroding out of proportion with return and until you see turaround in pattern these funds are money down the drain. Ist not "buy and hold" equity any more, its day traders (10 cents) stock.
They can have it.
re:"Glad I bought some of those @3.13."
Wow, talk about timing! Nice.
Seeing how you were so good (or perhaps lucky) at getting in at the all time low, what price do you see this at in a week or two? Thanks and congrats.
If you bought into the MSN last summer at 1.60 or so I would say you will do OK!
I see the price did drop the dividend and may stay there for a while. Good fortune to you in your investment there and I hope you make a mint.
Hopefully you will agree with me, that this investment is only relative to the price you paid, minus the dividends received, your new net price. NOTHING ELSE! It seems odd that the funds react to the other's RO! This makes no sense. This seems so odd that it almost appears that all three funds should be included into one and "let the tail go with the hide" as my old friend Joe used to say!
I also was very heavy into CFP and I am now out and looking for a good investment after clearing up some short term debt with a reduced volume of investment capital.
Good fortune to all and keep the slick side down!
Yes under $3.50 is a good buy right now but that might not be the case on the end of October or 2nd of January. Dont forget that CFP comes under short siege often and that could occur just before RS and you know why. I will take a look after New Year and if nubers match I dont have a problemm coming back in and what you don know is that I was very heavy into CFP.
So you do concede that anything under $3.50 ($14 for the new shares) was a buy. And that CFP sometimes is a good investment even though price goes down over the long term. And you also base it on NAV.
I guess then our difference in thinking is how markets (and NAV) will develop (or what we do to hedge that risk). Historically it's been ok to buy slightly higher than NAV (say 10%). But obviously recently that wouldn't have been so good.
Of course you want to be out when the RO comes along - we agree there.
Never assume anything look at te figures. With RS coming CFP has to trade 14 or lower in order to make an investment worth a risk. With projected divy of less that 7 cents per diluted share (less than 28 cents for new shares) fund is not a good investment over 14 bucks. With bad markets lately NAV could be $3.70 on end of October return on new share could be 26 cents and that is right return for $14.00. Anything higher in PPS is not worth the risk, because comes May another RO. Understand?
That's exactly what I assumed the error in thinking was. With CFP PPS change + distributions are very positive after periods of PPS at discount to NAV. Look it up for example on etfconnect.
Thanks Petar, I understand……everyone must live with their own convictions….but don’t give up on these funds yet…..because I think you’ll notice a big difference next year….GL2U2