I bought the rights and oversubscribed for addtional shares at the $8.30 too. The deal was not fully subscribed so all those that over-subsribed will get filled 100%. The stock will be under some pressure for the next week or so I'd say because of the full allotment.
Everen (the new name for old Kemper)came out with a buy yesterday. KHI is a typical high yield fund that has only been allowed to leverage only 10% of their assets verses most that lever 33%. THis has changed and they will now leverage 25% of the assets to "stabilize" the dividend. Of course it will have the opposite effect on the price.
The dilution will be appx. 3% of the present NAV which will put this fund at a 2-3% discount. A low for this fund.
The yield is just OK but I feel is more secure then most of these funds as many, like FAX, push for the highest that is reasonable.
My plan as usual is monitor is closely over the next month. If within a month I don't see this fund north of $8.50 I'll sell it. My expectations for it are KHI in the high $8's within 1-2 months. So I'd give a shot. With commissions so low, if you wrong just get rid of it is my feeling.
I oversubscribed as well to KHI and feel about the same about the same way you do. I sold two thirds of my position at 10 3/16 and oversubscribed by enough to re-establish my original position.
Anyway, I think we may have gotten lucky with FAX. I took my position at 5 9/16 late last year and am optimistic that the NAV of FAX will continue to rise for a long time which will drag the market value with it. I wouldn't be surprised to see a special dividend or two from strong capital gains in addition to the regular dividend or maybe an increase in the regular dividend as the market value increases to keep the yield up.
I certainly have mentioned this before but I like to talk about it because the investors I can convince the more eyes and ears I have to help monitor my investments too...if that makes sense.
Traders I know talk about looking for catalysts to drive there new purchase higher,i.e. up coming earnings, new business etc.. Sucessful traders I know buy high and sell higher, trading with the momentum.
I feel with income vechicles like FAX, KHI, SGU, HYP, PZN). I am looking for a "technical" catalyst(rights offering, secondary, unpopular merger, confusing change in corporate structure) to buy shares, verses fundamental issues (industry show down, earnings, etc.). Points of "inflection"..any ideas I would appreciate.