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Guggenheim ABC High Dividend Message Board

  • timodoz timodoz Dec 19, 2012 7:32 AM Flag

    ABCS begins maturity process

    While this fund got off to tough start on not getting the early distributions schedules fully disclosed it has now started to come into it's own on the basis of establishihng the pattern of distributions on a trailing twelve month basis. It continues to not adequately EQUAL weight the 3 Commodities currency countries in the stock holdings. It would seem though that ABCS will most likely provide a +5% annual distribution against market weakness and spikes in the value of the US Pe$o that drive the Loonie and Aussie towards par and the Price of ABCS to below $18.60 where it was recently trading. A very nice pop off the $17 handles of the post election market swoon playing out. This is one that can probably be a good way to play these swings in the Aussie and Lonie from near +/-Par and $1.07 with trading the shares on such swings that may have ABCS approaching ~+/-$21? The weakness on allocations can be repaired by using some AUSE & TLSYY and then maybe some individual Canadian outperforming UTEs? EMRAF, FRTSF, NPIFF & ATGFF? Maybe some BLIAF. The CNPF another possibility but the yield then not compelling for it's owning solvent rather than Zombie banks(70%). The impending Dec '12 ABCS distribution may surprise. It is possible that there will be a decent cap gain distribution included with the what may now be a more consistent quarterly distribution. Last March's distribution then an out sized one and probably had some Cap Gain enhancement then. The good news was that as against the previous near even distributions the last distribution was incrementally higher. So the possibility that the normal sized distributions may start showing a boost that becomes sustainable. ABCS should probably provide a buying opportunity after it goes ex in another week or so??? $21 sure looks like an attainable price target. The Real continues to battle it out at a sub $0.50 mark but certainly has the potentail to return to an attempt to assualt the Feb 2012 near $0.60 over the next year if China holds to +8% GDP growth. The Olympics are coming so that will lead to an infrastructure build out and some economic stimulus in Brazil, as well.

    Sentiment: Hold