We've been clamoring to go open-end for a decade. The new format may change payout schedule from monthly to quarterly but besides that I can't see why long term holders would exit a steady, well managed portfolio. I'm in some other income CEF's that recently blew up....trust me, ACG is one of the diamonds
This board used to have such a knowledgeable group of posters back in the day.
Can anyone explain what today's proposed ownership change means, and why the market is endorsing it with such enthusiasm?
It might be the next LINE. I doubt KMI can sustain payout in sub $40 crude environment.
And ask yourself if anyone would want this with stripped down divy.
Sure. There might be value here at current price. But if you're like everyone else, you must have massive pain in your energy holdings. Do you really want to put new money in this sector?
I'll just stand pat with what I have.
Of all the international oils, XOM is uniquely positioned with massive cash holdings. Just look at its balance sheet and compare it to CVX. Much like AAPL, XOM is very much a cash hoarder. It can endure low crude prices just about indefinitely and continue to pay (and actually increase) the divvy.
Don't be seduced by a higher payout rate from COP or Royal Dutch. Think of sub $40/barrel for the next 5 years and ask yourself which company you want to own.
Your analysis of NCZ price weakness makes sense. I wish I would have known my stock would track commodity prices when I purchased @ 8.50/share.
The bright spot is that, like everything in the financial world, what's hated now will be loved later.
for being in Ponzi-like funds... NCZ, PHT, etc.
Over 6 years of zero yields in money market and bank deposits forces irrational decisions. Now I'm losing 30% of principal by wandering into unforeseen risk. Fed monetary policy has destroyed a generation of savers. And don't expect any rate hike in September cause you'll be sorely disappointed.
You're correct... dividend cut is baked in already. NCZ share price will spike higher on the news as the perception that a more sustainable payout model will be extremely bullish for the stock.
I'm not buying more because I don't want to be too concentrated in one position but I feel very confident about NCZ 4 to 6 years down the road. Interest rates may drift higher but if you're waiting for a 5% return in a money market it might never happen again in our lifetimes. Retired folks need to come to terms with that sad reality.
CNBC is running this absurd message on its pre-market ticker. I have never seen a take over story shrouded in so much ambiguity. How can a company approach another one with no price? Why are investors being left in the dark? I'm sure Pershing knows the details
They wiped out NCZ premium before it finally bottomed. PHK is still sitting at 40% over NAV even after precipitous sell off. The math is painful to compute as market seems determined to eliminate premiums in leveraged CEF's. If you're bottom fishing better bet is NCZ where the carnage is over.
I think of my bond CEF's as if they were annuities with no death benefit. An income annuity is simply an insurance contract that has no stated asset value (similar to what NCZ is becoming)
anyone who's been in this for awhile has seen these 6% down days. Just keep reinvesting your monthly payout and try not to think about share price.
If you can't handle it buy an income-only annuity with no death benefit. But PHK is a much better value for your money
Sometimes I think FTC, FDA, CDC, SCOTUS get their kicks from making investors sweat out announcements. I've been on both sides of what often seem capricious decisions. Win or lose I always come back for the next big fight.