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Aberdeen Asia-Pacific Income Fu Message Board

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  • flipper_58 flipper_58 Apr 23, 1999 9:03 AM Flag

    Move upward in FAX

    I bought the rights and oversubscribed for
    addtional shares at the $8.30 too. The deal was not fully
    subscribed so all those that over-subsribed will get filled
    100%. The stock will be under some pressure for the
    next week or so I'd say because of the full

    Everen (the new name for old Kemper)came out with a buy
    yesterday. KHI is a typical high yield fund that has only
    been allowed to leverage only 10% of their assets
    verses most that lever 33%. THis has changed and they
    will now leverage 25% of the assets to "stabilize" the
    dividend. Of course it will have the opposite effect on the

    The dilution will be appx. 3% of the present NAV
    which will put this fund at a 2-3% discount. A low for
    this fund.

    The yield is just OK but I feel is
    more secure then most of these funds as many, like
    FAX, push for the highest that is

    My plan as usual is monitor is closely over the next
    month. If within a month I don't see this fund north of
    $8.50 I'll sell it. My expectations for it are KHI in
    the high $8's within 1-2 months. So I'd give a shot.
    With commissions so low, if you wrong just get rid of
    it is my feeling.


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    • I oversubscribed as well to KHI and feel about
      the same about the same way you do. I sold two thirds
      of my position at 10 3/16 and oversubscribed by
      enough to re-establish my original

      Anyway, I think we may have gotten lucky with FAX. I took
      my position at 5 9/16 late last year and am
      optimistic that the NAV of FAX will continue to rise for a
      long time which will drag the market value with it. I
      wouldn't be surprised to see a special dividend or two
      from strong capital gains in addition to the regular
      dividend or maybe an increase in the regular dividend as
      the market value increases to keep the yield up.

      Thanks for the comments.

      • 1 Reply to axzl
      • I certainly have mentioned this before but I like
        to talk about it because the investors I can
        convince the more eyes and ears I have to help monitor my
        investments too...if that makes sense.

        Traders I know
        talk about looking for catalysts to drive there new
        purchase higher,i.e. up coming earnings, new business
        etc.. Sucessful traders I know buy high and sell
        higher, trading with the momentum.

        I feel with
        income vechicles like FAX, KHI, SGU, HYP, PZN). I am
        looking for a "technical" catalyst(rights offering,
        secondary, unpopular merger, confusing change in corporate
        structure) to buy shares, verses fundamental issues
        (industry show down, earnings, etc.). Points of
        "inflection"..any ideas I would appreciate.


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