Tell the person about roc at 6 cents, reduction of cost basis,
When gabux paid large distributions they were large enough to exceed principal loses. Todays gabux paying 8.4 percent outstrip the appreciation and depreciation of gabux. So its not your grandfathers fund anymore. Unwise to sink 200,000 one lump sum into gabux
THe fund only throws off 8.48 percent annually and 200,000 is 16,960 annually with risk of ending up with 190,000 . You would do better buying a corporate bond at 7-8 percent rated b or above. Gets ya out of loosing capital when you buy a bond with a call. Very much like a bank cd although not fdic insured. Listen to guys who have been thru at least 1 bear mark downturn.
Sales agreements are legal contracts between the sell and the buyer for paying money when a purchase and or sale is done. The reps position they have no sales agreement with gaucx explained to yopu in a different way is saying"we are not under any obligation to sell gaucx or buy gaucx because we do not have a contract that obligates merril to do so. Your relations with Merril acting as agent without a sales agreement means to you they are under no obligation to fill an order for 200,000 on gaucx since they choose not to accept your large buy. The relationship with merril and you is strictly a contract and nothing in a contract forces them to sell to you nor for you to buy from them. They apparently felt accepting 200,000 on 1 Mutual fund that has under gone a reverse split was not in your best interest and you would loose much invested capital. There are others who could take your money and not care if this is wise. Keep that money in your pock from burning a hole in it
Gain some investing experience. You appear to be new to this serious way of making money. No insult to you. Remember the market is very unforgiving when we loose. So be careful even if your a multi-millionare
He did you a favor. You would loose some orginal principal. Since the reverse split, this fund pays only 8.44 percent and 200 K is way too much to put into it because it has a high return of your capital used for the dividend.gaucx does not pay 14 percent anymore. A safer bet would be NCZ which pay 81/2 cent selling at around 8.50 and steady payouts without a divdend cut. Then at least 3 more funds so you have a buffer against falling price fluxution and still get a monthly check equal or exceeding 200k dividend into one fund. Don't put all your eggs in one basket.
New money buyers aren't affected by the change, They see a low cost fund that pays them 7 cents monthly. They never got in on the 14 percent like we did. Many will like getting 7 cent with a 10 dollar share buy in price. The fund should have done a reverse split way back in 2005. I see sign the fund can come up fast or go down too all because there less shares and more money to tune up the fund. The fund is near 20 cents higher than it was on march 6th reverse cut day. It will surpass 10 a share I predict. It will have some down days. However its not acting like the old fund. It has comeback quick ability . I feel it will continue to improved the nav
Gamco web site says for march gaucx is paying .068 a return of capital into the dividend. No change in the proportions of the distributions as yet. Fund need some time to pass so it can start showing earninga from the fund itself. For now I am o.k with it unless it drops nav very hard with no recovery then I would sell out asap
From observation since march 6th, 015 I have noticed the fund now has re-bound price ability that it did not do when it was the old gabux. It is behaving more like a closed end fund regarding upward gains similar to IID which I bought last month. ITs paying near 7 cents, has climbed from 7.88 to 8.05, and pays just under 2 cents of return of capital. Gaucx"s re-built engine is doing it good with faster e.t. in the wall st 1/4 mile
From observation since the march 6th change, I notices the fund re-bounds with more increase and it hold true for down days too. There fund as of last week is up .12 cent since it split march 6th. If by April 6th its nav id past the nav split price Ide say the hair cut is doing it some financial good