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Компания НГП Капитал Резорсез Message Board

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  • cantpickastock cantpickastock Dec 2, 2011 10:36 PM Flag

    Anyone know why the drop from Mid Teens

    they have lost a lot of money on their investments, that is why NAV is below $10 from IPO price of $15

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    • This fund is a lost cause.

      They have lost so much capital that they cannot even generate enough income to cover their expenses, much less cover the div.

      If you read the 10 k it says the funds expenses are now 6.5% of the funds assets yearly.
      So this fund would need about 16% to earn the div and cover the fund expenses & mgt fees.

      Its impossible. Especially in a low interest rate environment. They are taking ever more risky stuff to try to stay even and are getting hit with defaults and losses.

      The fund is permanently impaired. It is now too small to earn enough money to cover mgt costs and the div. Thus they always change the div to a return of capital. It does not generate the div it supposedly pays.
      This fund is doomed to fail or cut its div.

      • 1 Reply to tipotcsh
      • harsh dude

        they have always had extremely risky investments - review the last ten years of 10Ks - relatively little change in risk level

        see the last 10Q - realized almost $1.00/sh on sale - unfortunately offset by several clunkers that they are writing off

        this is a play on price of oil and gas - they make serious money when prices go up- not so not good when prices go down

        also dividend is dictated by what would be taxable income- not by FASB income - this discrepancy results in return of capital - it is not up to them - changes in net asset value are pretty arbitrary - they make them up themselves and I have no idea how good their valuations are

 
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