Will you still feed me, will you still need me when I am 65?
i can't believe i'm here again but i couldn't resist.
you are a fundamental guy but don't understand the fundamentals of this fund (you claim NAV is going to zero).
you believe in facts but you don't believe mgmt when they state that the div payout is 100% covered by divs recvd (you claim 2/3rds is return of capital).
you don't believe words but you lean on one ANALyst's claim that NAV is going to zero (hopefully that ANALyst did some homework on the fundamentals of the fund after the recent call).
you are clearly not a cheerleader and i hope no one sees me as one. i'm not here selling this fund, just trying to explain the fundamentals at work here. the main one being asset values can go down while income remains steady. that is why the div yield seems so incredibly high.
what is really interesting at this point is the move up in the market. i don't know how long it will last but those that say the div capture strategy only works in an up market should be thinking about buying now. positioning for the recovery in six to nine months.
again, i'm not buying AGD or AOD. generally i'm maxed out on what i want in exposure. but those that say the div capture strategy only works in an up market should be more positive on the stock now. downside risk may be gone in six months. if you avg in over that time, you might be in good shape. and when the market has clearly bottomed, all the NAV to zero theory folks will be blown out.