EPS of $7.50 dividend is $1.68. where else can you do this. And it is not just gold extraction. It is diversified in the natural resources sector and global. Look at their holds at p 16 of the pdf: http://www.gabelli.com/Gab_pdf/annual/-116.pdf
IN a weird market this high dividend paying fund is going to be more than all right and that is why I just bought more!!! wish I had a little more faith when it was down during the rough November.
"Under normal market conditions, the Fund will attempt to achieve its objectives by investing at least 80% of its assets in equity securities of companies principally engaged in the gold industry and the natural resources industries. The Fund will invest at least 25% of its assets in the equity securities of companies principally engaged in the exploration, mining, fabrication, processing, distribution or trading of gold or the financing, managing, controlling or operating of companies engaged in "gold-related" activities. In addition, the Fund will invest at least 25% of its assets in the equity securities of companies principally engaged in the exploration, production or distribution of natural resources, such as gas, oil, paper, food and agriculture, forestry products, metals and minerals as well as related transportation companies and equipment manufacturers."
Yando: You say the fund's EPS is $7.50 (you say it has a dividend from earnings of $1.68 per share)?, and your conclusion is "where else can you do this? Answer, NOT HERE. If you want to add an interesting, and finally a correct figure, you might also mention that it is selling at a 52% premium over NAV. So you are paying $1.52 for something that has a value of $1. Does that give you food for thought?
The problem is that the earnings appear to be from sales of equity and not from dividends of the fund's stockholdings. Also, the premium over NAV is humongous, 28% or so, last I looked.
All this suggests that the company is going to have difficulty maintaining these kinds of earnings or its stock price. So, I sold off all my holdings.
Yando: You were right....where else could you find a fund like this one? As of today 1/2/09 it's at $14.45, a premium of 36% over its true value (NAV is 10.66), and the 2008 distribution paid you a yield of 1.68 CENTS per share. (1% of the dist was yield). Maybe you should buy some more before it reaches a 40% premium over NAV.
I am not sure where you got your information. this link is to the company web site for GGN and shows no ROC in the last year. Am I not reading it correctly? http://www.gabelli.com/Template/get_taxinfo_fs.cfm?fund_code=-116
Yando: If you think this stock EARNS a profit of $7.50 per share you are mistaken. I suggest you verify what the actual yield off your investment is what you think it is, then determine if it is a good buy.
Yando:DblCheck my analysis: 2008 Dist - $0.14
X 12 mo = $1.68 per share. 1% of dist=cap gains, 99%=ROC (not yield since ROC is return
to investor his own money which results in reduction of capital he has invested in the fund (it reduces his cost basis) So the YIELD
= 1.68 cents per share.
1% X 1.68 = $0.0168 pershare cap gains (yield)
99% X 1.68= 1.6632 per share paid in capital
(ROC) $0.0168 + $1.6632 = 1.68
Also note: YTD NAV return -63.93%
1 yr MKT return -48.93%
Do u agree w/my figures - R U pleased w/1.68 cents per share annual YIELD?
Yando: Questions: What is the NAV and what is the mkt price of GGN? 2008 dist include approx 1% from net capital gains & 99% from Paid in Capital. Based on the investment, what do you think is the "yield"?