Not sure yr in & out based on NAV is a profitable theory. since you can lose dividends when out of FFC. And Pimco CEF's always sells for up 40% above NAV and yields 10%+. FCC premium usually runs 5-8% above NAV. However, Crumine's LCM sells for 10% below NAV and still pays 10% annually, pays quarterly. PEMCO has good portfolios that allow high yields supporting prices 40% above NAV. There is no clear theory how to play CEFs other than performance and history.
Since 2003 FFC price is down 35%, but paid about 56% in dividends, so 19% ahead
Past 5 years price is down 20%, but paid about 35% dividends, so 15% ahead.
Past 2 years, price up 30%, plus +14% dividends
Past 1 year, price down 15%, and +7% dividends
Past 6 months, price down 7%, and + 5% dividends
Past 3 months, price down 10% and + 2 1/2% dividend
Past 5 days, price down 6% and dividends nil
If you are a trader, you will probably lose on FFC. LT investors who are patient and buy low, likely do very well.
On May 31st, financials comprised 37% of FFC holdings. Concern about banks may be cause of today's price drop, but more likely due to larger than normal shares traded due to holders dumping above average number of shares today. The higher divided rate for FFC should cushion the price decline here since interest rates are so low into the medium term due to Fed policy. I buy more shares when the price drops. Would not be too concerned about FFC since so well diversified and holdings of troubled banks are fairly low amounts.
Below are the remarks from Maria Cantwells to a friends inquiry interesting. What do you think?
"The Pebble Mine is a massive mineral exploration project proposed for the Bristol Bay region of Southwest Alaska. Currently, this project is under consideration for development by British-based Anglo-American, PLC, and Canadian-based Northern Dynasty Minerals, Ltd. According to the companies' review of the proposed mine site, fully mining the copper, gold, molybdenum, and other metals would produce over seven billion tons of waste rock, a toxic stew that would be deposited in massive new artificial lakes. Seepage into the groundwater could adversely impact the Bristol Bay watershed, which is the main outflow for the rivers and streams in the proposed mine area. Contaminated water and industrial mining activities could threaten the pristine local environment and the diverse marine and terrestrial life that depend on it, in particular the wild and healthy salmon populations that thrive in the watershed, like the world's largest sockeye salmon fishery.
On September 12, 2011, I sent a letter to the Environmental Protection Agency (EPA) Administrator Lisa Jackson to express my support for the EPA's decision to conduct a thorough scientific analysis of the effect a large-scale development project would have on the Bristol Bay watershed. Bristol Bay is one of the most productive salmon runs in the world, generating a total value of at least $500 million each year for commercial and recreational fisheries. Thousands of Washington state jobs, including seafood processing and the restaurant industry, depend on healthy, sustainable salmon populations. In 2008, Bristol Bay yielded over $113 million in total value for Washington state commercial fisheries while recreational salmon fisheries yielded an additional $75 million for Washington state businesses alone.
EPA is conducting a scientific analysis of the Bristol Bay watershed to help the agency understand how future large-scale development may affect water quality and the salmon fishery. The information the agency gathers is intended to help guide future actions to protect the waters and promote sustainable development. EPA will study information related specifically to the Pebble Mine because it is the most likely near-term large-scale development project. EPA does have the authority, under Section 404(c) of the Clean Water Act, to restrict, prohibit, deny, or withdraw the use of a water body as a disposal site for dredged or fill material – such as mining and other waste – if it determines the discharge will have unacceptable adverse impacts on municipal water supplies, shellfish beds and fishery areas, wildlife, or recreational areas."
OHI does not break down financials for each facility. I was referring to an industry trend of rising costs, incompetent help, state violations, lawsuits and unprofitability:
Ocean View convelescent in Long Beach, Wa closed suddenly 2 years ago because this branch was unprofitable. 68 staff let go and all patients sent home to family or to distant facilities. Obama care makes care facilities recertify patient care personnel every single month, a huge increase in costs per facility. Situation is getting gradually worse as state, county and federal aid declines. More research of trends and healthcare reits, you'd better do you own dd.
Specifically, what attracts you here?
P/E ratio is over 70:1...is that good?
Earnings extremely low...is that good?
Insiders not buying......is that good?
Assets flat, not growing in a depressed RE market. They do manage their cash well.
If you just like the divie, why invest in such a concentrated, undiversified company?
Wilbur Ross only deals with basket case companies that he thinks he can turn around, he failed on ICO and will fail here since too much competition and unhealthy state and federal bugets. Disagree?....then by all means buy dis pig. Cash flow just over $1.2M divided by 400 facilities = $3,000 free cash flow per facilities. Bring in the workers on a bus from Honduras and El Salvador!!!....to take care of grandma....lol
He makes his money the old fashion way, with sure thing insider dealing and steals away into the night; leaving you holding the bag