Looking back this is the lowest pps and staying here in 5 years. I know the market has been selling off
but this is very poor performance--not sure how much recovery we will see, even with the great div.
Having some concern and hope for some improvement but don't have that good feeling.
Was telling people that this POS will likely dip to 4.20- 4.30 soon, esp with the next div. reduction. The dividends hardly make up for the share price decline. Bought at 4.68 May 19, which people thought was an awesome price; now 1.5 months worth of dividends wasted on price decline.
Well Jack….we’ve seen this before last year…..I seem to recall it taking at least a couple of months following the RO……before the share price gained any significant traction…..I’m sitting on a ton of RO shares @$4.61…..and after 2 divvys…..I ‘m ahead about 12 cents or 3.37% at current share price.....and as always the share price will puff up again before the next RO…so I plan to start unwinding my position around march.
I've been telling nokker for weeks now that there will be no PPS increase and with every divy there will be PPS erosion. This month we went to $4.56 , next we will go down to $4.54 etc. The time is to get out of CFP on first PPS pop.
And the next 5 year chart will look like the last 5 years, a steady march to zero. The proper way to play this has been discussed a zillion times on this board. If you understand, a 15%, or higher, annual return is quite attainable
That would be typical for a closed end fund, but the endpoint is not zero. This won't move at all as a penny stock -- sub $1 -- it will terminate before that point is reached. I've gotten 36% out of it over the past 10 months, and I can see that it is moving into the end stages. That makes for some unpredictable behavior. It's going to see-saw with the Xdiv date, as always, but I think 30-cent swings are in the past. The MM is staying right on top of it, keeping out the usual manipulators.
IMHO, watch the average volume. When adjusted for diminishing PPS, volume will decline as the fund loses viability (NAV erodes). Pick your exit point -- I'm out the door somewhere around avg vol = 100,000.