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Cornerstone Progressive Return Message Board

houtech0829 19 posts  |  Last Activity: Feb 6, 2016 8:52 PM Member since: Dec 23, 2009
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  • Reply to

    Foreign QE Capital

    by mr.phil2u Jan 30, 2016 3:04 PM
    houtech0829 houtech0829 Feb 6, 2016 8:52 PM Flag

    True Mr. Phil…..and there will always be inexperienced investors entering the market….but they do have a choice…there are professionals they can hire for a fee that can help them…..or they can do it themselves…but it’s their choice to make and they’re responsible for their own actions..…jmho

    Just fyi these funds did try to pay out what their portfolio earned…..prior to 02 from inception…traded at a discount and paid quarterly…as you know it’s difficult for an equity CEF to pay a decent divvy……and maintain it consistently…as you can see from their history…anyway, over time they would sell some assets to help cover the divvy…naturally this caused NAV to decline which also pushed the sp lower creating a deeper discount at times…this made it a great short for me…until the MDP was announced in 02…..then it jumped from trading at a discount…..to trading at a premium in a day…..ouch!....talk about learning a lesson…my biggest and only loss…but I didn’t get mad…I just got even…and then some since then….LOL

    BTW do you know what happened to PSEC mb?...GL2U2

    EOM

  • Reply to

    Foreign QE Capital

    by mr.phil2u Jan 30, 2016 3:04 PM
    houtech0829 houtech0829 Feb 4, 2016 7:21 PM Flag

    Hi JD, yep, takes a strong stomach…you're better off with your annuity…however, all storms will pass…but until then just keep a barf bag handy….LOL…Good Luck

    EOM

  • Reply to

    Foreign QE Capital

    by mr.phil2u Jan 30, 2016 3:04 PM
    houtech0829 houtech0829 Feb 1, 2016 11:33 AM Flag

    Hi Mr. Phil…..long time no see…..while investing in a stock that earns its divvy is good in theory…..there is no guarantee it will always be able to do so…for example look at the energy sector…..many smaller oil related companies and MLP’s have had to cut or eliminate the divvy…..and have a huge lost in value…and some are on the brink of BK…due to the price of oil…even the bigger oil companies are at risk if oil stays low…..bottom line is no one can predict what will happen in the future…so just because a company earns enough to pay a divvy today…..does not mean it will be able do so tomorrow…or that it’s a good long term investment…..these funds are a horse of a different color…because the divvy is not dependent on any type of earnings…..but is based on a MDP that promises to pay out 21% of NAV each year…however beware, no one can pay out 21% of NAV without consequences…and these funds may not be suitable for everyone’s investment style…..so bottom line is always do your DD and understand the risks before making any investment….jmho

    EOM

  • Reply to

    In the new year...

    by william.haack Jan 16, 2016 2:50 PM
    houtech0829 houtech0829 Jan 17, 2016 2:25 PM Flag

    I’m not saying a merger can’t happen…..but it should only be considered when there is no other solution…..like the CFP merger with CLM…which was a bail out of a failed experiment…..that was doom to fail from the beginning…..creating a CEF holding other CEF’s…..and expecting it to trade at a high premium like the other funds…with no rule 19 exemptions……and never officially adopting the MDP…..jmho

  • Reply to

    In the new year...

    by william.haack Jan 16, 2016 2:50 PM
    houtech0829 houtech0829 Jan 17, 2016 12:40 PM Flag

    Hi Bill, merging CRF with CLM is a bad idea…..just like it was when CLM and CFP merged…..instead of doing a RO like CRF did…..this is evident when you compare NAV…..that shows CLM NAV was $2 higher…than CRF NAV about a year ago…..and now CRF NAV is a bit higher than CLM…..the RO provides a fresh cash infusion to slow down NAV decline and pay the high divvy…..which a merger does not do…..in fact it actually accelerates the decline in NAV…..because they have to sell their existing assets to cover the high divvy payouts…..jmho

    EOM

  • Reply to

    Week ending Dec. 4th data

    by jrstewart73 Dec 4, 2015 6:49 PM
    houtech0829 houtech0829 Dec 9, 2015 2:06 PM Flag

    Huh?....are you replying to me or Clueless?.....he can’t answer the question because his reason is flawed…simply because there is no other CEF…..that can compare to these funds in the CEF world.

    EOM

  • Reply to

    Week ending Dec. 4th data

    by jrstewart73 Dec 4, 2015 6:49 PM
    houtech0829 houtech0829 Dec 8, 2015 1:58 PM Flag

    And of all those CEF’s that trade at a discount……which one compares to CRF....that has a MDP that promises to pay out 21% of NAV each year…..and has no leverage to service?

    EOM

  • Reply to

    Is another R/S destinned for CLM's future?

    by somber.solitude Dec 5, 2015 3:05 PM
    houtech0829 houtech0829 Dec 8, 2015 12:38 PM Flag

    Yes, there will be another R/S in the future…..usually when the SP drops around $5 or below…because some institutions and investors won’t buy below $5…..and yes, all high yielders are considered very risky…..because the high yields are unsustainable for long term…and these funds are no exception…..because no one can payout 21% of NAV without consequences….if it were possible, then everyone would do it…..thus the slow decline you see in SP, NAV and divvy over time…..and the need of a RO each year to slow down the decline and pay the high divvy…also the merger with CFP was bad for CLM…bigger does not mean better in this case…..this should be evident when you crunch the numbers…that show an accelerated decline in NAV…..which resulted in a larger divvy reduction next year by comparison…..and although I don’t know what your long term strategy is…..but if I were you….I’d go with CRF over CLM…..because even before the merger…..CRF’s long term returns were better than CLM’s returns historically speaking according to the Closed End Fund Association ….jmho

    EOM

  • Reply to

    After this month ex-date, this baby will tank

    by cinemax_19 Dec 3, 2015 12:40 PM
    houtech0829 houtech0829 Dec 4, 2015 9:51 PM Flag

    Hi Bagman, well I guess they could offer RO shares @ 103% of NAV in a worst case scenario…like they did prior to the market crash.…LOL…..but can’t say I’m surprised that CRF NAV has caught up with CLM NAV…..CLM’s NAV decline is accelerating.…..this time last year CLM had almost a $2 lead over CRF NAV…..with a $21 to $19.12 respectively that has now evaporated…..as I’ve tried to point out to others. jmho

    EOM

  • Reply to

    After this month ex-date, this baby will tank

    by cinemax_19 Dec 3, 2015 12:40 PM
    houtech0829 houtech0829 Dec 4, 2015 6:15 PM Flag

    Hi Cat, considering today’s closing price and next year’s divvy…..is a 20.47% payout next year…which is not a bad position for those buying now…..but if we see an end of year selloff as some suggest…..then you could get a better price…but then there are the rare occasions when we have seen a Christmas rally…..and then you could miss the boat…..so whatever you decide is up to you……however I think we’ll see a RO announcement at the end of March…..because historically that’s when the premium usually increases…..and you could get another chance for cheap shares…..jmho

    EOM

  • Reply to

    Post Fed Hike

    by alumilli Dec 4, 2015 11:54 AM
    houtech0829 houtech0829 Dec 4, 2015 3:30 PM Flag

    Hi Alumilli, theoretically it should have little impact on this fund long term…since the fund itself has no debt…however some of their holdings that have debt may see a decline that could affect NAV…but the impact to their overall portfolio should be minimal…and may reflect the initial reaction of the market short term…..jmho

    EOM

  • Reply to

    Beautiful Month Old Half Siamese Kitten

    by catloraine Nov 25, 2015 10:43 PM
    houtech0829 houtech0829 Nov 26, 2015 12:13 PM Flag

    Hi Cat, seems appropriate for you to own a cat…..LOL…..anyway, Happy Thanksgiving to you and All

    EOM

  • Reply to

    How Much Will CLM Go Down in December?

    by catloraine Nov 18, 2015 1:57 PM
    houtech0829 houtech0829 Nov 21, 2015 2:59 PM Flag

    All good points Dins…..and I agree with you…..naturally they would like a premium above 15%....but the problem is NAV decline is accelerating (declined about 23% for 1 yr ending Oct. 31) due to the inherent high payouts…..and although CFP raised 100 mil……that RO was a year and half ago……and it has been 2 yrs since CLM did one……currently CLM is paying out approx. $7,739,583 each month…..which is about $92,875,002 just for 1 year…not including expenses…..so it’s not hard to see the urgency of a RO…but when will the do one?.....don’t know…..but hopefully as soon as possible….jmho

    EOM

  • Reply to

    Data for week ending Nov. 20th

    by jrstewart73 Nov 20, 2015 6:35 PM
    houtech0829 houtech0829 Nov 21, 2015 12:05 PM Flag

    Thanks for the update Clueless…..much better when you just stick to the facts…..and let those who have a vested interest in the stock…..draw their own conclusion and opinion whether it is a buy, sell or hold…based on the facts…..so I gave you a thumbs up…..jmho

    EOM

  • houtech0829 houtech0829 Nov 20, 2015 3:17 PM Flag

    Hmmm yes sounds logical on the surface…but I’m out of CLM and only holding CRF now…..with all things considered…..I’ll wait for CLM to do a RO first before getting back in….jmho

    EOM

  • houtech0829 houtech0829 Nov 20, 2015 1:37 PM Flag

    Correction….CLM reduction is 22.96% not 29.7%......CRF reduction is 15.88% not 18.8%.....my bad

    EOM

  • houtech0829 houtech0829 Nov 20, 2015 10:58 AM Flag

    Hi Cat, actually the difference in next year divvy between CLM and CRF is .0045 per share a month…..or about .054 per share a year…..this was a 29.7% yearly reduction for CLM…..compared to 18.8% yearly reduction for CRF…..obviously the divvy announcement is reflective of the lack of CLM not doing a RO in 2 years now.…compared with CRF that just completed one a couple of months ago…..jmho

    EOM

  • Reply to

    Question?

    by lk4663 Nov 19, 2015 8:20 PM
    houtech0829 houtech0829 Nov 20, 2015 9:53 AM Flag

    November 2013 was the last RO for CLM…..it is long overdue and the decline in NAV will accelerate the longer they wait…..for example, notice how the gap between CLM and CRF NAV has shrunk…and are almost the same now…..compared to previous years….jmho

    EOM

  • houtech0829 houtech0829 Nov 16, 2015 1:43 PM Flag

    Perhaps you should take your own advice Clueless….If you’re going to use that rag Barron’s as a source……you would know that the average CEF trades near 10% discount…..so where do you get a 5% discount?.....also the average CEF is highly leveraged @ 33%.....and the average divvy yields are less than 8% and no promise to pay one…historically CLM has a 10 yr average premium of 31%.....and it has NO leverage…..and a MDP that promises to pay out 21% of NAV each year……so your opinion that all CEF’s are the same and should trade at a discount is a false assumption that is not based on any facts…..…this is why folks give you a thumbs down……otherwise show me a CEF that compares with CLM that trades at a 5% discount that proves your point.

    EOM

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