I ask, because I'm thinking that it may be time to start nibbling - put in a buy at let's say $3 and see what happens. Five years from now, I suspect I'd be happy. Of course, if BK is a possibility, then I could be bummed in a shorter period of time.
It's a closed end fund. It owns other stocks. It trades well below its liquidation value. One would expect its manager to hedge risk with covered calls and/or puts. Check out www.etfconnect.com to see their holdings.
Taking the losss for me is meaningless and I expect a dividend cut. As long as the check continues each month, it's anybody's guess how low we trade. Dow 4000? Again, I don't need the loss and will hold as long as the dividend is flowing.
The rebound will happen so fast you will not get back in where you thought you would.
I suppose that technically they could but from what I can tell, the fund itself has no long term debt so that would not be an issue. The only liability of any significance that I see on the balance sheet is Payables for Investment Securites purchased which I have to confess I am not quite sure what that represents.
Rather than BK, a more likely possiblity for RQI would be if the securities that they invested in went BK to such an extent that they just decided to wind down the fund.
If they "wind down the fund" does that mean they reimburse you for your shares and take them back? Because that could mean a real big hit if you bought it figuring on a long-term rebound and it dropped way off in the meantime.
I was thinking the same thing last week but its been heading sharply downhill every day, broke through the 52-week low with ease and hasn't looked back. If its down 10+% every day how do you decide when to buy?
I haven't seen any announcements from C&S and the selling you're seeing these days could be due to anything at all, really. People want out, so out they go, regardless of whether any value is being left behind. The div could be halved or even thirded right here and still RQI would present value.
In the current environment, anything is possible however look at "Key Statistics" and IF YOU CAN BELIEVE THE DATA, it doesn't APPEAR bk is probable at the moment. All financials and reits are being pummeled. Other opinions?