First of all, CRF is not a stock. Its a Closed-End fund, which means investor demand for the shares can drive the market price higher or lower than the actual value of the fund (NAV). If CRF liquidated for any reason, you would get back its NAV...roughly $16.67 (NAV will be updated around 6 PM EST today). That is all you would get!
Investors think this fund has some magical strategy to cover its 21% NAV yield. It DOESN'T. It basically gives you back your investment over time. The strategy DOESN'T work. The only advantage is that you can reinvest at NAV when there is a large premium valuation, but just keep in mind the NAV will deteriorate over time with a 21% NAV yield.
Nice call CEF expert. Just what does a $16.67 NAV (after a 1 for 4 split BTW) that does nothing but go down tell you about where the market price belongs. Get a clue...21% NAV yields DON'T WORK, no matter how much manipulation Cornerstone does.
Amazing what a 1 for 2 reverse split in Dec '08 and a 1 for 4 reverse split in Dec '14 can do for propping up the market price and NAV. Of course, no value was created, only smoke and mirrors. Add back all those high distributions since then and CRF would still be down -35%, one of the worst performances of any CEF. Ask yourself, if the 21% NAV yield strategy worked, why aren't other CEF sponsors rushing to do it?
NAV does nothing but go down on a 21% NAV yield and yet the fund goes straight up! Investors don't even get the 21% yield the fund has to pay when they pay a 40% market price premium! Not even reverse splits and Rights Offerings can hide the fact that its a loser strategy and the NAV has done nothing buy get destroyed over the years. If there was any sanity, CRF & CLM would trade in single digits where they belong. You deserve to lose your investment in these funds.