Unfortunately Dan, I think these are actual owners of this thing, not trolls. I guess some people only learn the hard way, and are so obsessed with current yield that they can't see the emperor has no clothes. Whether they even understand how a closed-end fund works and the differences from an open-end fund is questionable.
Shame on Bill Gross too, for obfuscating how risky this thing is with his lawyerspeak when asked to comment for the Barron's article.
It always makes me laugh when I read comments like the ones above. I know how to handle money believe me, I've made millions and retired very young. Hence why I have the time to comment on this message board!
It’s a good investment in PHK, as long as you have the time horizon to hold it, so buy it.
The dividend will never be reduced, the stock holds its premium because of it, Bill Gross knows this and it would be the death of this fund if he did it.
If you’re a short term trader, don't buy it.
Currently this stock pays you back in ~ 6 years in fact I've started buying again and will continue to buy as long as my return is less than or equal to ~ 6 years.
I guess it all depends on how deep your pockets are mine are very deep, Dan and Chiquit, probably not so much...they just trade on the fear factor and are not investors.
Whether you are a trader or investor, the bottom line is to make as much net as possible--He who dies with the most toys wins--lol. If it werent for foolish investor or trader types who run these things up or down regardless of value, I would have no positions in any of this stuff.
On this anonymous board, the girls--they are all beautiful (as the barker states in the movie Cabaret) And everybody is young and rich millionaire and retired.--bottom line--who cares chris?
"The dividend will never be reduced, the stock holds its premium because of it,--chris--what #$%$--Can you name a single closed-end trading at a su#$%$tantial premium which is 10 years old or orlder and never reduced dividend which was 17% of principal (8.38) --will this be the first--will this time be different--And furthermore, pimco has reduced payouts on other funds in the past.
And for chiq, maybe they arent trolls, just fools. I remember a gentlemen in his 70's, a lifelong investor looking for "income". He had this brilliant idea, in early 1990's to buy chase (at approx 25) and some other stocks (bank stocks) with higher option premiums,--sell calls and sell puts near the money. PS--when this stock tanked to $10 within a few months, and other stocks did likewise, he had tremendous margin calls (and he thought he was "hedged"--lol). I advised him (gently) earlier that he would be facing risks, but, hey, who takes advice from a "kid" much younger than he was, and besides he was getting all this "free" money just by selling options--free money and high yielding "safe" bank stocks--what more could you ask for--lol