Positive on NAV YTD makes no sense when you buy at market price. The market price has fallen from 12 to 7.
I'm hoping by Christmas it at $10.00
Really? that's a lot of hope ..... I won't expect more than $9, and in all likelihood, this is headed for $7.xx
PHK, the fund, did not gain (or lose) anything. Since it is a CEF, the amount of money they have doesn't change either.
The problem with this ETF right now is that if you sink too much money into it, and the bounce does not happen, and instead it goes to under $8, you lose a lot.
If you invest a small amount, the bounce, if there is one, is not gonna be worth the anxiety.
Factoring in 8 months of dividend of $.975, the net return on NAV is 31.5 cents or about 4%.
The 20% premium over NAV (as of closing yesterday) is still too much.
I posted a couple of months earlier how their income was coming down. They were making 5 cents, or 7 cents ... last month they earned 11 cents (I think). The high dividend isn't sustainable.
Both PDI and PCI are trading below NAV and PHK above NAV. Why?
In the event they don't get the regulatory approval, Cigna gets a $2Bn breakaway fee which is almost like a quarter's earnings.
Hopefully, the bad earnings and lack of growth are already priced in and the stock price will get a boost if the results are not as bad as feared. Maybe the management will announce another buyback.