an annual rate of .54 cents has anyone given any thought to a reasonable and safe entry point to FAX. In addition to the reduction one has to notice that they will be reviewing the .54 cent level on a quarterly basis going forward.
At $4.75 market value FAX was yielding a little of 15%. One would have to assume that a dividend cut was somewhat built into that market value, but probably not a 25% reduction. I was kind of thinking that a marked value that would yield about 14% would be a reasonable entry level. That would be a market price of a little under $4 with a healthy discount to NAV for protection should the performance curve on this fund continue the decline as it has been doing for several years.. What are some other thoughts on this?
The Dividend has been reduced to the ACTUAL earnings generated by the fund, at the price as of 10:30 EST of 4 3/4 that equates to a yield of 11.37%, think you're kidding yourself if you think stock will go down to 4, think it will stabilize here, maybe move up a bit in the next month or two, then move based on actual market (interest rate) conditions. Welcome input on my comments, or comments from others.