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Aberdeen Asia-Pacific Income Fu Message Board

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  • belizeboundsoon belizeboundsoon Apr 19, 1999 10:23 AM Flag

    FAX may show good strength

    ANYONE KNOW THE CURRENT NAV?

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    • The NAV as of last Friday 4/16 was $6.92, which
      is
      up from $6.75 the last time I checked it about
      a
      month ago, which was up from $6.50 shortly
      before
      that.

      The current NAV is based on an AUD exchange rate
      of
      0.6471, which has also been stronger recently, and
      has
      moved higher (above 0.65 cents) since
      Friday...

      The NAV is updated at the end of every week on
      the
      following recorded line: 1-800-323-9995.

      Big yield
      plus capital gains too (moving up on
      the
      nailed-down dividend policy) - great investment!

      • 1 Reply to roam92
      • With the dividend guaranteed, one method of
        valuation of the income stream is to equate it with
        interest rates. But which interest rate?

        For
        instance, if your alternative would be to place these funds
        in a CD paying 4.5%, then FAX is equivalent to what
        you would have to invest at 4.5% to recieve FAX's
        dividend; .72=X(.045) or $16. If FAX sold for $16, it would
        produce the same income as that 4.5% CD.

        Of
        course, that ignores risk, and a CD is FDIC insured. So
        lets look at a more conservative estimate. Lets use
        the broker margin rate. This may be appropriate
        because if you have a margin account, you may be able to
        borrow against it and not even use any of your own
        funds.

        These are running in the 7-8% range. So, lets use 7.5%.
        At that number, if you invest in FAX with either
        your money or by borrowing, its break-even at $9.60.
        Up to that number, some might say it is smart to buy
        all you can.

        Now, you might be able to get a
        better return with an alternative investment, like
        internet stocks. But the analysis here is the same- risk
        is involved. These other investments only make sense
        if you can get those returns with comparable
        risk.

        $9.60! That's my target price for FAX. And that's the
        broker good-til-canceled order to sell entered for my
        20,000 shares.

 
FAX
4.97-0.08(-1.58%)Jun 24 4:04 PMEDT