My dad has 400 shares of GGT and we are both very confused with the rights offering. He paid $11.00 per share for the dividend income not too long ago. Should I buy more shares at this discount? Thank you UHHADMEAT.....I am glad he has GAB for the last few years ...and GDV....Thanks Dave from NJ
That boat sailed. The rights offering was completed. The offering was to buy in at $9, a discount from the NAV. The price is still lower than his entry point so if he added he would lower his cost.
Be aware though that these Gabelli Funds are leveraged, that is, they use separate funds to increase returns. However, in Market downturns the leverage works against and the fund losses price more than the market in general. Some people use such an event to buy more. I am just saying be aware. If your dad's in for the long haul, the returns will overcome. This fund sheds a 10% dividend, that is nice income. BTW, they do not borrow the $ to leverage but get the $ thru the preferred shares. Might want to check that out, many AAA rated. Good Luck in your investing.