The daily movement in the share price of PKT has offered the opportunity to profit from a one day trade up until today. It certainly beats doing nothing while waiting for the stock to return to its previously lofty heights or at least profit should it fail to fulfill our expectations. And of course it makes a lot more sense (and money!) than just constantly whining .
I tried to short part of my position in my taxable account just before the close as I have done a number of times recently. Its been a nice way to make a little extra profit from the regular moves up and down, using a stop to minimize a potential loss but protected by still owning the stock. Unfortunately no stock is available at Schwab their pool has dried up. I tend to think this is a plus going forward even though I regret the loss of this trade.
Should you decide to buy averaging in over the next six to twelve months for a sum totaling no more than 4% of your portfolio would be the most prudent course to follow.
No since it's a hybrid fund consisting of both stocks and bonds. You could consider buying two ETFs though, a total stock market and total bond but then you wouldn't benefit (or not!) from the fund managments expertise.
Anybody else buy MTG this spring? Not a home run but up around 65% in eight months. Diversification should be everyones mantra. Even the best laid plans can go awry or at least it helps to make some profit while waiting.
Peter I agree with you, the growth story is alive and well and if PKT can continue to execute buyers will return. Focusing on the fundamentals and patience will pay off.
Interesting piece on shorts getting crushed this year in The Trader column of this weeks Barron's. Many short oriented hedge funds have been forced to close with many others either planning to close or significantly pulling in their horns. The most heavily shorted stocks were the best performers and they also suggest that a lot of this years gains were stimulated by heavy short covering. Hopefully we will finally benefit from this failed strategy in 2014. Also in their Mutual Fund column reference is made to the funds Potfolio Manager (Skyline Special Equities) stating that his favorite targets are misunderstood companies that have been negatively affected by a particular aspect of their business such as a drop in otherwise strong earnings because of an aquisition for example. Certainly PKT would would be in that category and again hopefully with time that misunderstanding will be recognised with a search for bargains in an otherwise fully valued market. I remain both patient and optimistic.
Raju issued private shares at .76c less than half the number you quote. An Indian company with no listed shares in its own country can literally do anything they wish with their ADRs. Raju has totally screwed US investors without breaking the law in India or the US. although a US based company would be flooded with civi suits if they dared this kind of maneuver. Almost all institutions sold out for this reason.
bruce I don't own ADX I was taking a look since we are seeing year end selling but the dividend is too low for me. I have 30% in high payiing CEFs averaging 9.75% highly diversified, 20 in all and a cash position of the same size. This along with a modest position in a mix of floating rate senior loans and short maturity bonds provides ample retirement income with lots of dry powder for a sale and no worry about having to sell in weak market. If I was holding ADX with its paltry payout and poor appreciation I might share your frustration.
You've been an owner as long as I remember, at least back to 2004 and we have both made a ton of money of this stock. I understand the sentiment of old times sake and can't help but share it, you've have to be grateful for a gift that keeps on giving. However it remains a trade around earnings in my opinion until we see Institutions return and analyst's resume coverage again, proof that trust has returned. Until then the risk of further dilution or being taken private are still very real.
Both the market and the fund can erode those discounts and many initiate buy backs when they deem the shares underpriced. Unlike open end funds you know exactly what you are both paying when you buy and what you realize when you sell and if you buy as you are supposed to, during weakness or corrections and sell in a recovery you have a profit plus get very well paid while you wait. I view them as a valued part of my income oriented portfolio and if you are a very long term investor the liquidity is tolerable because of the high pay out you receive. There are always going to be differing opinions in any area, much depends on ones particular needs ans strategy, thank you for sharing yours.
Even the worlds best and most successful investors admit to being unable to accuratelly predict the future and you sir, despite any claims to the contrary, are not amongst that esteemed group.
" Closed end funds are dinosaurs in todays marketplace. Their reasons for creation no longer exist and have been replaced by market efficient ETF's "
I have to disagree, they offer an opportunity to buy at a significant discount to NAV and they never have to sell a great position to redeem shares. Also because of the reasons just stated they can use some leaverage to boost returns. Both CEFs and ETFs have their place in a well diversified income portfolio.