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Pimco High Income Fund Pimco Hi Message Board

dan86droon 155 posts  |  Last Activity: Aug 29, 2015 10:25 PM Member since: Dec 26, 2007
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  • Reply to

    Risks and strategy for PCI?

    by shoeleather17 Aug 29, 2015 11:41 AM
    dan86droon dan86droon Aug 29, 2015 10:25 PM Flag

    since this is in ira as well, there is no consideration of taxable or tax free distributions, "income generation", short term, long term or wash sales. So that object is really to make as MUCH as possible marked to market, (after commissions and spread or execution costs) with the lowest risk.

    Closed-ends 101

    I start with highest discounts, then look at size of funds which reflects on liquidity and trading spread (eg rcg has large discount but large trading costs of spread and low volume as well as large expenses), expenses of fund management, discount relative to closed-end universe, and discount relative to fund category, and discount relative to historical values. Then I choose the best of those which meet those standards.

    Note: the word "premium" is not in my closed-end vocabulary when searching for investment, but outside of ira I have shorted premium funds with success. (you can not short in ira account which must be a cash, not margin, account).

  • Reply to

    Did NAV Change Up???

    by geebee44 Aug 28, 2015 7:02 PM
    dan86droon dan86droon Aug 29, 2015 10:09 PM Flag

    my biggest position is pci, which I had been buying on the way down and now selling small pieces on the way up. Do your own research. Cet which I bought recently at 18.00 is now 20, also looks interesting at current discount--do your own research.

  • Reply to

    Did NAV Change Up???

    by geebee44 Aug 28, 2015 7:02 PM
    dan86droon dan86droon Aug 29, 2015 11:54 AM Flag

    I thought bill was a genius when things were going well--lol

  • Reply to

    Did NAV Change Up???

    by geebee44 Aug 28, 2015 7:02 PM
    dan86droon dan86droon Aug 29, 2015 11:25 AM Flag

    "outside of the over high premium the fund itself seems fairly well run."

    Reminds me of joke asking Mrs. Lincoln how she liked the play???

    And actually I made lots of money on the short side of this, have no positions, long or short now in this.

  • Reply to

    Did NAV Change Up???

    by geebee44 Aug 28, 2015 7:02 PM
    dan86droon dan86droon Aug 29, 2015 11:22 AM Flag

    hey gee-gee-- cornerstone was billions and now it is millions---

    cornerstone--last three months even worse than phk, down 18%. premium now only 6%, not the 100% traded in the past.

    Note recent 4 for 1 reverse split! Price now $17, in April 2007 price was $145 according to yahoo charts, and that was when premium was close to 100%. Nuf said!

  • Reply to

    Did NAV Change Up???

    by geebee44 Aug 28, 2015 7:02 PM
    dan86droon dan86droon Aug 28, 2015 10:28 PM Flag

    hey geegeee ==how did cornerstone end when it was trading at 100% premium and paying out hefty distributions--not a pretty sight, and phk is following in its footsteps although not an exact duplicate.

    Aftermarket trading 368 share volume and could have been a fat finger error--someone could have pressed sell order instead of buy.

  • Reply to

    Did NAV Change Up???

    by geebee44 Aug 28, 2015 7:02 PM
    dan86droon dan86droon Aug 28, 2015 10:22 PM Flag

    management says clearly in every distribution statement and in the prospectus that the distributions have NO relation to income and are completely arbitrary--no delusion there, management is up front and if people believe that distributions are anything other than arbitrary amounts decided each month--again, fools and their money...

  • Reply to

    buy on the dip for income

    by geebee44 Aug 27, 2015 9:42 AM
    dan86droon dan86droon Aug 28, 2015 4:32 PM Flag

    lucky you witchita, always managing to buy on the absolute low and sell on the absolute top.

    By the way did I tell you the one about the fish I caught--it was on the boat then flipped overboard and got a way--that was indeed a whopper of a fish.

  • Reply to

    buy on the dip for income

    by geebee44 Aug 27, 2015 9:42 AM
    dan86droon dan86droon Aug 28, 2015 4:23 PM Flag

    mcgoo, management already knows the story about this fund, but as long as they are making their fees, they are not at all concerned (nor should they really be concerned) whether the market price is 30, 50, 100 or even 1000% premium.

  • dan86droon dan86droon Aug 27, 2015 11:03 PM Flag

    unless you are trading in and out, if you bought and held since start of fund, you would be losing money, even with reinvesting distributions. I dont see how you can claim to be making a lot of monney. As a new issue price was 25 plus feb 2013, current price 18.93, dont know exact amounts of divs and cap distributions.

    Any buyback at market by the fund selling at a discount would help the shareholders. A 100% liquidation would be more helpful!

  • Reply to

    buy on the dip for income

    by geebee44 Aug 27, 2015 9:42 AM
    dan86droon dan86droon Aug 27, 2015 5:24 PM Flag

    gee-gee--

    When does your 15% of something become 15% of nothing???--in past year you lost more than twice the dividends in drop in stock price. Of course, you can laugh at your future potential (minus 15% per year) and say who cares about principal, as long as I keep getting my dividend until nav is all gone.

    I very much get it gee-gee-- You are an investor who has lost over past approx three year and just prefers to ignore inconvenient facts.

    And any investor who looks at income without looking at principal as well is just a fool who will soon be departed from his money!--and you can quote me on that geebee.

  • Reply to

    buy on the dip for income

    by geebee44 Aug 27, 2015 9:42 AM
    dan86droon dan86droon Aug 27, 2015 10:02 AM Flag

    geebee--isnt it nice to be able to invest, and not to worry about price????--sarcasm here

    And isnt it nice to invest based on the past (inception) rather than looking for future potential?--sarcasm ditto.

  • dan86droon dan86droon Aug 27, 2015 9:56 AM Flag

    naveeny, hope you are happy with your investment as your principal keeps going DOWN, even including your distributions reinvested.

    Since inception, 1/2013, --2.5 years ago, the investor has been losing (according to cef connect) 1.5% compounded, including distributions.

    Again, hope you are happy with your results, and paying taxes if in a taxable account.

  • Reply to

    current quote 8.42 by 8.48

    by dan86droon Aug 24, 2015 10:05 AM
    dan86droon dan86droon Aug 25, 2015 12:36 AM Flag

    actually, 20.70%, but it is paid monthly so compounded is 22.8, add 2% for expenses and you get 24.8% as return required at current distribution to avoid shrinking assets in the fund

    --those magic beans in the portfolio must really grow fast!!! But so far over the past year, assets in the fund have shrunk fast

  • Reply to

    current quote 8.42 by 8.48

    by dan86droon Aug 24, 2015 10:05 AM
    dan86droon dan86droon Aug 24, 2015 7:43 PM Flag

    baggins, the price drop and the existence of still large premium is enough to scrare off anyone, even without a mask.

  • Price down 85 cents

  • How is their promise of increasing shareholder value for the long term holding out.

    I much preferred and voted for the challengers who could have liquidated the fund resulting in a 10% instant return, rather than the 20% or so loss were currently have.

    Oh well, the tribe has voted to go along with current management who seemed more interested in keeping their jobs than increasing shareholder value which they promised, but have not fulfilled. My voice and vote was in the minority. So far for management fool me once...

    Real time sp futures MINUS 52 or 2.6%, 1920

  • dan86droon dan86droon Aug 23, 2015 11:05 PM Flag

    open end would mean a quick distribution of the nav (less expenses) or $7.12, guaranteed $2 loss for bill gates and all current holders.

    Open ending is a tactic for getting value from funds trading at a DISCOUNT.

    I hope he does open end pci in which I am currently way behind on current investment.

  • dan86droon dan86droon Aug 23, 2015 10:18 PM Flag

    in the meantime those that shorted three months ago have lost approx $2 as phk price dropped, and made possibly 20 cents difference between borrowed interest and distributions paid out. Plus, they may have to add more cash to pay for margin call as price dropped. Id say overall a lousy investment.

    Just looking at a stock, any stock, which pays out 15% and paying margin of 8% does NOT make the stock a slam dunk investment on margin!!!

    (For those interested in history, look at LOG symbol for rayonier partnership in the 1980"s which paid 30%/year for a partnership whose ONLY asset was lease. Also high divs for more recent PGH)

  • dan86droon dan86droon Aug 22, 2015 9:33 AM Flag

    stock market delusion #1

    You lose money ONLY when you sell your stock losers. If you dont sell, you dont lose.

    Agree with you ny--people make investment decision always, but dont recognize their activity when they chose the "default" option--ie do nothing or hold.

    Trading or trader is not an insult and buy and holders should not feel that they are somehow morally superior, if nobody traded the buy and holders would have a hard time buying!!!

PHK
9.490.00(0.00%)Aug 28 4:02 PMEDT