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Gabelli Utilities AAA Message Board

  • kingoftheroad2012 kingoftheroad2012 Feb 27, 2013 4:09 PM Flag

    Those that took down the NAV by cashing out the divy...

    are poor (un SAVVY) investors...

    Why ? because today we will get a big boom in NAV and you missed that opportunity to capture that low ball NAV from yesterday...

    Very dumb to not be re-investing right now...

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    • Nav is realized by the price of the companies that make up the fund.

    • I take my divs in cash for Roths. I use the cash to buy on dips and have gotten most of my new shares at less than the reinvest price. Best to you however you play.

    • You just refuse to learn. Cashing out the distribution does not change the NAV. You keep repeating this again and again and it is incorrect. What's worse is that it has been explained to you many times and you continue to repeat it.

      People may choose not to reinvest their distributions for several reasons. Some people take cash distributions and may later reinvest them. Other may choose to reinvest their distributions in other investment vehicles. Others are simply in a situation where they need the cash. One size does not fit all.

      But please stop saying that cashing out a distribution lowers the NAV. That is wrong. It's been explained to you how the NAV is figured each day and you still don't "get it."

      • 1 Reply to fredkane3947
      • I understand that if there is a large draw on cash reserves a rebalance has to occur by fund management going forward to maintain the 20% cash reserve allocation.. If that draw and rebalance is significant enough to put less capital to work in higher return equity assets that has a VERY significant effect on the NAV... If this is not true than why do bulix and fkutx have significantly greater NAV apreciation ? Look at there asset mix 90% equity to cash reserves - they are not setting aside as much in cash reserves to satisfy a possible huge investor draw in divy and in turn gain greater NAV from greater assets alotted to equity performance...

        Its all right there for you to see... and you still hide behind some form of deceptive theory...

    • Seek some professional help please! You are making me nervous. TIA!!

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