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Alpine Total Dynamic Dividend F Message Board

  • kilowattt kilowattt Feb 5, 2014 5:13 PM Flag

    Heading south

    I think we are headed back down to $4. Will they reverse split again?

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    • Anything can happen ....but please keep in mind that the last time we saw a 15% ish discount to NAV and a share buy back plan in place ....compounded by an 8% dividend paid out monthly ...the following results occurred :
      ..lets just look at the arithmetic of a five year investment in AOD ..( Hint - when the Discount to NAV was also 15% and they announced a share repurchase ...sound familiar ? )
      From my 12/31 brokerage statement - AOD
      2500 shares purchased on 3/9/09 @$4.450 per share - $11,126 investment
      2,350 shares owned thru reinvestment of dividend purchases - $13,165 - average price of $5.602 per share ...( loss of $3,318 unrealized )
      Total value on 12/31/13 - $20,322.31
      minus original investment of $11,126 = $9,196 Total Return or a PLUS 82.6% return divided by five years of investment duration = + 16.5% annual return ...

      The REVERSE split will hurt shareholders almost always does ...especially when people read the Jan statements ...but can work out for us in the intermediate term angry sellers of AOD , ignoring the 4.6% increase in monthly dividends ...seeing GIANT unrealized losses on their brokerage statement from AOD ....will essentially throw in the proverbial towel on AOD ...driving the market price down even further ...

      AOD is showing on my brokerage statement as one of the " Biggest Losers " ...with an unrealized loss of $3,318 on an original investment of $11,126 ...but ...the total value of my AOD investment is $20,322 ...

      Its an accounting anomaly ...showing a -29.8% LOSS ...where I have +82% more money than when I started ... and I think we have an opportunity to repeat this same quirky methodology all over again ...using the reinvested dividends as our leverage ...

      Sentiment: Hold

      • 1 Reply to mike57dk
      • I am a former investor in AOD, (sold late last year at a split adjusted 8.18) and I'm having a difficult time relating to the 82% gain that you continually crow about in your posts. First of all, you pick an investment date of 3/9/2009 -- which just happens to be the EXACT DAY of a generational bear market bottom in the S&P 500. If you actually did buy on this date, (while nearly everyone else was hiding out in their investment bomb shelters), and bought AOD instead of a simple ETF that indexed the S&P, you left a HUGE amount of money on the table. The S&P closed on 3/9/2009 at 676 -- and closed on 12/31/2013 at 1848. That's a 273.3% increase in the S&P vs. the 82% increase that you seem to be enthralled with in AOD.
        The only reason I held on to AOD through most of last year was the hope that the 15% price to NAV gap would at least narrow into a single digit % discount to NAV. It didn't, and still hasn't to this day. Fortunately, (and unlike many others), I got out with a small loss after factoring in monthly divs.
        Too many other (better) investment options out there to be investing in AOD.

8.09+0.06(+0.75%)Aug 28 4:06 PMEDT