This was posted on Friday-- "Nov. 13, 1998, ACM Govt. Income Fund Inc., "announced Sept. '98 3 mos. net invstmt. inome, "$0.20 vs $0.25 and 9 mos. net "invstmt. income, $0.66 vs $0.72. "Net asset value per share was $8.76 at Sept. "30, 1998 and $10.94 at Sept. 30, 1997.
With a little projection you get income for the year between 0.80 and 0.88 per share. This is NOT enough to cover a dividend of 0.90 per share!
The NAV of $8.76 gives a premium of 8.5% for the current price of $9.50 and a premium of 57% for the purported support at $13.73 A positive premium does not make sense when both earnings and NAV are decreasing.
Sorry, fundamental analysis says that this stock must go down. This is not an internet stock, but a bond fund!
I tend to agree with you about the future market value of ACG. Actually, the current NAV is $8.59.
It has always been a mystery to me why ACG sells at such a premium to GSF when their portfolios are almost identical and their income from investments are also close to the same. GSF seems like a better investment. Periodicly the market values of ACG and GSF come together only to spread apart again. Maybe ACG has better market performance because of their Value Line listing. Other opinions would be appreciated from those who follow Alliance Closed End Funds.
As for their $.90 dividend, some Alliance customer service representatives have told me that Alliance may have changed their dividend policy in their closed end funds and may hold dividends steady by combining investment income with return of capital. I wouldn't bet the farm on it though! After many years of investing in Alliance funds I find the credibility of Alliance information to shareholders shallow and unreliable. Again the experiences of others would be appreciated.
Could anyone tell me what online brokers handle ACG.I currently have a position in ACG at a 'less than full servicebroker' and I would like to move it. Would you also knowif they handle treasuries?Thanks