I don't understand why the stock hasn't gone up in light of the tender offer terms. Buy here with a chance to cash in in a few weeks with a tender price higher. No guarantee your shares will be taken but still attractive in light of todsy's stock price.
Because the stock market has been heading down. If you buy today at the discount to NAV for 6.02 and you were to get the tender offer it would be for 6.32. But if the NAV keeps falling the tender offer might not be that much of a gain (if not a loss). I don't think this is going to be the case, but you never know with these crazy markets.
Otherwise it would make sense to load up on thousands of shares.
Then again, if you think these folks know what they're doing, you are better off holding the stock, getting the PPS increase and sticking around for a few dividends as well.
Something to consider from Page 9 of the offer ...
THE OFFER MAY HAVE CERTAIN ADVERSE CONSEQUENCES FOR PARTICIPATING AND NON-PARTICIPATING SHAREHOLDERS. PLEASE SEE BELOW.
Effects on the Fund. The purchase of shares pursuant to the Offer will have the effect of increasing the proportionate interest in the Fund of non-participating shareholders and reducing the NAV of the Fund. This reduction of the NAV of the Fund will likely cause the ratio of the Fund's expenses to its NAV to increase. Additionally, a reduction in the number of shares issued and outstanding may reduce the liquidity and the depth of the trading market for the Fund shares...