Seeing it droped just 3 cents when 7 out of 10 went down I missed the boat to get out and watch it till it came back if it dosen't sink. On monday it may be just 3.90
In addition to what i said, this fund has never recovered what it lost maybe with a few instances. No the nav won't go up. get out and into another fund that does not use a lot of return of capital to make up its dividends(distributions)
What do they do with the other 99 percent of the saved money?
No yesterdays and todays losses were caused by about 8 of the top ten stocks going for a loss thus lowering the nest asset value. Just look it up . The reverse split will not be started till march the 6th, although just the idea will cause some to sell out as seen on this board.
I strongly agree. I talked this over with a a friend of mine . I came to the conclusion that no matter how many reverse splits this fund tries, its that .07 cents the fund is obligated to pay every month that will make it die a slow death. Here's why , the 7 cents is made up of some earned income but a lot more comes from the money everyone put into this dog . Even with a 2 for 1 reverse split, the .07 cent will still be some earned income and the rest from investor's money. This fund has to get up to over 5 cents paid from profits out of the 7 cents paid each month. Even then 2 cents will be made up from return of income or ROC. Ya see it just don't matter that he cut the shares in half when they still will pay us with some return of capital and a little with actual profits. They should have started this fund to pay just what it earns earns each month. A lot of people would find this to be too little money and not buy his fund. So he makes up for it thru return of capital making the payout look like a nice juicy hunk of money. I my self will sell out before march 6th. And I will go back to the closed end funds that are redeemed by the selling price of the shares , not the nav. My first and likely my last mutual fund .
Today was another down day with 8 out of top 10 in the red.I predict a 2 cent to 4 cent lower nav due to a loosing top ten day.Today is the distribution date.Hoping gaucx stays above 4.00
Thanks to mjs 030853, I appreciated your time to explain where the roc actually come from. Now the new understanding I have is for example , 18,000.00 invested from day one gets reduced by the return of capital that makes up the amount that is missing from the 7 cent distribution. If next month the 7 cents is composed of 0.04 cents from profit, the other .o3 cent has to come out of my 18,000.00. The reason is that this is a managed distribution pay-out which always pays .07 regardless of where the money comes from. Now my 3 cents is then deducted from my cost of 18,000.00 so I no longer have my orginal amount I invested but I got it back in order to make up the distribution short fall. The roc is subtracted off my orginal 18,000.00 and lowers my cost basis. The more they do roc, the lower my cost basis becomes. I always thought it came out of the capital I put into Gabelli fund and not out of my money. Not so. My cost basis I am guessing might 4.13 when I believed my orginal cost was 4.58 . I am guessing in this example the other .45 cents is returned capital. For now I'll digest this and have some tax question to ask if you won't mind answering them.Please correct any erroneous thinking.
I look smart as written. Nu was the ticker thru last friday but when company changed name to Eversource they changed their ticker to Es from NU. as of monday 2.23.015