These guys are finally getting serious about trying to increase NAV. When this pulls back Monday, keep an eye on the share price relative to NAV of $4.65. Could be an opportunity to buy in at a good discount to NAV assuming you think the new fund managers deserve a chance to turn the funds performance around.
the new mgrs did the right thing. i recently bought BOE at 15% discount when they cut their dividend. it worked out good for me. i held for a few weeks, it recovered, and i made some money. the same thing could happen here, a trade that lasts a few weeks could be a good idea. but i wouldn't bother buying at a discount and then hold for a year. i don't think the dividend capture strategy works out in the longer term.
i wonder if this div cut for AGD will finally burst that bubble. it has been trading at a premium for a long time. something very strange going on there.
The strange thing about AOD's announcement to cut the dividend in half is this: The market is at a 5 yr. high. Seems strange that with the market going up and business getting better, AOD is cutting the dividend. It very well may be that the new management "team" doesn't have the expertise or ability of Jill Evans and her group to generate above average returns. There is nothing impressive about AOD reducing it's dividend to an annual rate of 7.57%. There are a number of stocks that pay that much or more on a routine basis. I am thinking specifically of REITS and stocks in the Oil and Gas sector. Other individual stocks like PBI also have dividends in that range. This being said, you'd think AOD would be increasing it's dividend to reflect better business opportunities.
Having announced the dividend cut, I think you can expect AOD to tank in the next week or so as knowledgeable investors flee. Will this create bargains. I doubt it. Remaining investors are still stuck with Alpine's management and their new investment "team."
You still don't get it. AOD sells at a discount because the market does not trust Alpine Woods management. A discount to NAV means nothing unless the fund disolves and pays the actual NAV to shareholders. The way AOD has destroyed NAV since its IPO the market expects them to keep doing the same thing.