You don't seem to understand what a Reverse Split is.
"DEFINITION of 'Reverse Stock Split'
A corporate action in which a company reduces the total number of its outstanding shares. A reverse stock split involves the company dividing its current shares by a number such #$%$ or 10, which would be called a 1-for-5 or 1-for-10 split, respectively. A reverse stock split is the opposite of a conventional (forward) stock split, which increases the number of shares outstanding. Similar to a forward stock split, the reverse split does not add any real value to the company. But since the motivation for a reverse split is very different from that for a forward split, the stock’s price moves after a reverse and forward split may be quite divergent. A reverse stock split is also known as a stock consolidation or share rollback."
I just received my proxy vote email and I see the BOD is suggesting a RS. To me an RS is like a confession that you have screwed up and this is the last ditch effort to save what's left of the company from total destruction. I will be voting FOR the RS because it may be the only hope for the company to continue being a "Going Concern". While I'm voting for the RS I'm also withholding my vote for the 3 BOD candidates. These bozo's should be fired for totally mismanaging this company and bringing it to the brink of bankruptcy.
Maybe you can answer a question. All your posts seem to be positive about the company, yet all your posts carry a "Strong Sell" sentiment. Can you please explain this seeming contradiction?
Well, When Pioneer cut the div on PHT it came as a bit of a shock as PHT never had a div cut that I know of so I looked at other Pioneer CEF's and found that they cut the div on all of them except MAV.
I couldn't see how they could cut the div across the board without cutting MAV as well, it just didn't make sense. I've been looking to take a position in MAV for a while but resisted. I got in at 13.80 after the cut.
HNW Div cut from .16 to .135 in Nov 2014
MHI Div cut from .095 to .085 on 11-14
MHI Div cut from .085 to .070 on 05-05
PHD Div cut from .065 to .055 in Aug 2014
PHD Div RAISED from .055 to .060 on 05-05
PHT Div cut from .1375 to .115
MAV Div cut from .095 to .080 on 05-05
This fund may not be the highest dividend payer, it's about in the middle of the pack with a distribution rate of around 9 1/2% but it is selling at a discount of about 10%, it only has a downside risk of 59 cents but an upside potential of $2.25. If that's not enough it has a EPS:DIV Ratio of 105% meaning it takes in more than it pays out. Furthermore, the fund has a UNII of +$.9316 which is the highest of the 48 funds I track. That means they are sitting on a boatload of cash so there is virtually no chance of a dividend cut in the foreseeable future like so many CEF's seem to be doing lately. FHY holds the distinction of being in first place of the 48 funds I track.
In fact I just bought more today.
Big mistake poppa. Of the 48 CEF's I analyze PHK ranks near the bottom in 4 out of 5 catagories . The only catagory it does well in is dividend and even that is a problem in that they are barely making the income to support it. I would rate PHK as a grade 4 Strong Sell.