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Cornerstone Strategic Value Fun Message Board

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  • walsingmalinda walsingmalinda Aug 1, 2009 5:55 PM Flag

    When to buy before getting dividend

    I have never paid much attention to discount or premium and I have always made more than I have lost. Luck of the draw? Maybe.

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    • I have watched this stock for quite a few years, and it has always paid a big dividend and sold at a premium. The company is religious about paying the dividend.

      Buyers know that part of the dividend is a return of capital. But people buy this stock anyway.

      CLM had a reverse split several months ago. 1 for 4. Prior to the split, CLM had sold for 6 or 7. It went down to 2 during the crash last November.

      If CLM returned to pre split prices, it would be at 24 or above.

      But, what is the real value of the portfolio? I do not know. The NAV, I guess, reflects the real value.

      CLM is committed to paying the current dividend this year. My guess is that they will continue to pay the dividend next year, and the NAV will go lower. I presume that they will sell assets to pay the dividend.

      Eventually, the stock price would go down, and maybe they will do another reverse split to bring the price back up.

      I know nothing. This is just the way it appears to me. I own a few hundred shares.

      • 1 Reply to kopykack
      • I agree very much with everything you just said, however the last time this stock traded at 150% of its NAV, the stock got crushed, crushed, crushed.

        I'm not at all suggesting people short this thing, I'm only saying that it would be cheaper to buy the underlying assets instead of CLM.

        Also someone else mentioned they own this without knowing whats in it. Why would anyone ever buy a stock they know nothing about?

        Month End Share Price NAV
        8/31/2008 $20.65 $13.48
        9/30/2008 $11.04 $12.16
        10/31/2008 $8.76 $9.96
        11/30/2008 $7.60 $8.92
        12/31/2008 $7.62 $8.71
        1/31/2009 $8.60 $7.89
        2/28/2009 $7.32 $6.89
        3/31/2009 $7.06 $7.24
        4/30/2009 $9.16 $7.65
        5/31/2009 $9.87 $7.87
        6/30/2009 $10.41 $7.70
        7/31/2009 $12.08 $8.08

16.90+0.10(+0.60%)Jul 22 4:02 PMEDT