I bought some at $22.35 and $22.24. From my blog:
There are occasions when a Closed-End Fund (CEF) is preferable to holding a comparable ETF due to the positive effect a high discount has on expected return. For example, Adams Natural Resources (PEO), a CEF with a reasonable annual expense ratio (0.63%) and outsized discount to NAV (15+%), can result in higher returns than competitive oil ETFs. The extra return you are likely to get due to the discount, even without a shrinking of that discount, is greater than the expense fee being charged.
Historically, PEO has returned 9% per year over the past 5 years and 5% annually over the past 10 years. Splitting the difference, using a reasonably based long-term return calcuation of 7% a year, the discount on PEO means you get an extra 7% multiplied by 15% (the discount) resulting in an extra 1.05% of return annually. However, it costs 0.63% in expense ratio (or fees) annually to hold the fund. 1.05% – 0.63% = 0.42% in free net gain. In other words, this can be considered a negative expense ratio and a substantial advantage to the investor. This is a reasonable expectation unless management makes poor timing moves. Portfolio turnover in PEO is only 20%, so this shouldn’t be a deleterious factor.
Currently major oil stocks, which are large portion of PEOs holdings, are extremely out of favor. This has created an opportunity for decent forward returns.
Sentiment: Strong Buy
I decided that we're plumbing the depths of a commodities bear market and now is the time to buy, unless China goes into a depression. I just added significantly more TC shares to my holdings at a hopefully bargain price of 76 cents. Good luck to all longs.
Sentiment: Strong Buy
The reason I'm reading this board is I'm contemplating averaging down. Took my first position at $1.56 seven months ago. This looked cheap then, so it must be super cheap now. Will they survive, that is the question. I'm knee deep in oil drillers, metals and mining companies, etc. Not sure If I want to dig a deeper grave.
I've taken a lot of money out of that account. Bought a couple of houses with cash. Probably would be 900k without those withdrawals. But you're right, it would be difficult to make it back from these levels. That 166k was fully margined at the market's low (S&P 500 @ 666). I've been buying commodity producers stocks lately. Many are at the same levels they were in 2009.
There was an interesting article on Seeking Alpha regarding the re-indexing. The author took a short position in PGN. He said the typical stock corrects 17% after being bounced from the index.
I feel for you. It is a sickening feeling to lose that much. From 2007-2009, I went from 510K to 166K in my largest account (margin) by buying too soon in that devastating decline. People at work said I was white as a ghost. Luckily, I didn't get a margin call, but one more big day's decline in March 2009 would have triggered it. I held on and the account was worth 700k in May 2013.
shares are down 2.66% to $10.39 in market trading on Friday after the natural resource miner suspended production at its Quebrada Blanca plant in Chile after ground movement was detected near the site.
The company has suspended production indefinitely and did not provide a timetable for the resumption of activities at the plant, although mining activities not associated with the plant are continuing.
This looks like a cheap way to get energy industry exposure. It trades at a discount and has a reasonable expense ratio. I'll probably be adding it in the near future.
This is probably the worst BDC over the past year. I track 6 BDC's and this is underperforming to an incredible degree. No faith in management by the market.
I follow about 6 BDCs. This is the worst performer by far. It's not even close. Of course, its the only one I bought and held onto. Hopefully it can make a bottom soon.
I own a few hundred shares and put my relative's money in it. I'm crying the blues too. The only ones not crying are the shorts and management pulling in millions in fees.
I'm considering adding more since it is 50% below where I first bought it. Relentless selling day after day has beaten this down way below book value. Unfortunately, I don't know much about their business prospects, but they've been doing this a long time and have ridden these down cycles before and come back nicely. Hoping that management hasn't crippled the company.
Commodity prices are approaching levels seen during previous bottoms. Search google for "stock market advantage" and you'll find a chart with a short article demonstrating this. I bought some BBL today and will scale in additional buys if it falls below 40.