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Aberdeen Asia-Pacific Income Fu Message Board

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  • axzl axzl Mar 12, 1999 4:58 PM Flag

    Tender offer for FAX

    do you think all of those statistics really say?
    We both know one thing to be a fact; FAX's market
    value decreased from approximately $10 to $5.30 and its
    NAV didn't fare much better. Please explain in your
    own words what kind of a future that you think FAX
    has based on what you posted.

    I think FAX is a
    good buy at these levels. I feel that way because the
    AUS Dollar is closer to its lows than to its highs
    compared to the US Dollar. It's selling at a healthy
    discount to its underlying NAV. There are several other
    compelling reasons, but I've been wrong before. I'm
    interested in what you think. Please share.

    • Hello everyone - I posted the FAX statistics for
      point of information only. I think FAX has great value
      right now - especially if you have a IRA and don't have
      to pay taxes on the dividends. I'm 66, and I've been
      invested in and out in FAX since it's beginning, and made
      big loads of money.

      Recently I walked it down
      all the way to 5.50, then purchased $80,000 worth. At
      this time I am not afraid of what it does. As long as
      I am getting those lush dividends, the NAV can stay
      where it is forever.

      I want to invest even more
      now, but you guys have me scared to do that. I'm just
      thinking that I should pull out of open end mutual funds
      at these levels. Cheers- Cajun Joe

    • If you looking for decent capital gains from FAX,
      my advice is look elsewhere. Closed End funds in
      general pay out the max. in current income, principle
      value in general is secondary in what I've seen.

      The US bond market has exploded on the upside in the
      last 10-15 years, but look at the NAV's of most bond
      funds, down. Over the long term they drop. If bond rates
      went up a lot in the next 5 years I'd expect most bond
      fund to decrease to almost nothing after payout and
      bond value drops. DOn't let that happen to your

      If you want to secure your principle better then you
      may buy the bonds directly as they have a definite
      maturity. Otherwise use stop losses and move on. These are
      not Bank CD alternatives but more like stocks, iMO.
      Have a fail safe system in mind to protect your

      IMO, if the AUD goes up a lot then you'll see dividend
      increases, NOT money reinvested to protect NAV value. It's
      the nature of the beast.

      Good Luck.

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