So as a TA guy what does the divergence between price and Chaikin Money Flow tell you? Price is moving up while CMF has moved lower and has even turned negative. It tells me that notwithstanding the move upward in price the stock is under distribution, i.e. further downside price pressure to come.
As for having to pay the dividend while being short, PIMCO's horrible mismanagement of leverage has made that a non-issue for now since dividend payment and declarations have been suspended.
Sorry if I gave the wrong impression, but I dont question the sincerity of the management in determining the nav, but what I am saying is that often, the market price of these closed-end funds is BELOW nav, for reasons having to do with management expenses, etc.
Were you one of the many who were buying this recently when it was near $10??
over past 5 years, according to etf website, total annual returns on nav (compounded) is minus 13, and on market is minus 4 . So whatever "magic beans" the management is using, the premium (now 60% or so) seems unwarranted. Nav today is 3.20 and in my opinion fair value is at least 20% below that. Time will tell if, like crf, price and premium of 100% collapses to today's approx zero in short order.