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Capital Gains Income STREAMS Corporation T.CGQ.E



TSX:CGQ.E - Post by User

Comment by spazzmanon Feb 11, 2012 7:49pm
445 Views
Post# 19521321

RE: What Am I Missing

RE: What Am I Missing

I wish your post was correct but I am afraid the facts are more complicated.

First the funds N.A.V. of $29.83 (Jan.31/12) is made up of two types of shares CGQ & CGQ.e 

CGQ trades at $24.47 pays no dividend and will at termination pay the greater of N.A.V. or $25.00/share

CGQ.e trades at $6.06 pays a consistent dividend
.0875/share/month 17.3% yield N.A.V. of as of January 31 2012 was $5.36.

At termination on or near November 30, 2013 the shareholders of CGQ.e will be paid the N.A.V. of CGQ.e as of that date.   Meanwhile shareholders will collect a guaranteed healthy annual dividend of $1.05.  The  forward contract agreement granting the return of $15.00  was canceled after the financial crisis of 2008 and is no longer offered at termination.  CGQ.e generates income via interest income, capital gains, earnings from selling covered calls and dividend earnings from portfolio holdings.  The fund from time to time has re-balanced this portfolio reacting to current market conditions and investing in new sectors.    

 

I hope this answers your questions.
I guess one thing is true.  "If it sounds too good to be true, it probably isn't. "
Happy trading.  
Disclosure: I own a boat load of CGQ.e and plan to hold it to the termination date.
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