Capital Gains Income STREAMS Corporation T.CGQ.E

Still holding on

[spazzman]

Congrats to all those who held on over the summer and to those who bought when things looked their worst.

CGQ.e is still a guaranteed 17+% monthly yield even at today's asking price.  

The next few months will be very interesting,  The US elections should boost these financial markets upward and a raising tide raises all ship.   JMHO

I hope everyone had a great summer, it's time to go back to work.  

BUY LOW SELL IN RETIREMENT

[Intellectual]

Hello Spazzman, I have studied this fund for a very long time, and used to be an investor. However, for the sake of anyone on this board, let me say that there appears nothing but danger for this fund. Let me explain why. The fund terminates near the end of 2013, at which point the capital shareholders will receive their guaranteed $25.00 initial investment, and the equity shareholders will

[spazzman]

Intellectual I see no flaw in your analysis, in fact I stated similar facts in my February 11/12 post when the n.a.v. was $5.36. True the latest n.a.v. now $4.51. With the termination date still over a year away I believe that CGQ.e still offers a great return, however with each passing month one can only hope that along with a raising global market that the portfolio n.a.v. of CGQ.e moves n'

[Intellectual]

Thanks for your response. My calculations show that the fund's NAV would have to rise by exactly $0.60 for current investors to break even, after dividends: Current trading premium is $6.26 - $4.51 = $1.74. If we subtract 13 months of dividends of $1.14, we get $0.60.  This means that the fund's portfolio would have to rise by 0.60/4.51 = 13.3% for investors just to break even

[spazzman]

Intellectual again its hard to argue against your calculations, my only defense is that you are 4-6 months ahead of where I would be concerned enough to exit out of this fund.  Like STQ.e, CGQ.e n.a.v. is dropping month after month.  In August of 2011 STQ.e was boosting a n.a.v. of $8.77 today it is down to $7.84 and the fund price has followed n'sync.  For some reason

[huff5413]

Sorry spazzman but I am with intellectual.  $4.51 n.a.v. is $1.75 below todays trading.  with a $1.05 dividend paid until termination there is no safety net to hold the stock up.  Look what happened to HIT.un when this fund was trading above its n.a.v. and the termination date was less than a year away.  I don't believe CGQ.e is worth the risk.   Looking to reduce

[quinn2]

Is it worth waiting for this month's dividend before exiting?

[spazzman]

Yes, I am betting that one can hold on until year end.  In Jan/13 if the n.a.v. does not improve or at least hold then I will begin unloading this fund.  JMHO  

[FEEDBACK20]

November 7 n.a.v. was $4.50 down 1 penny.   Hope this is the bottom.  $1.50 below todays bid and less then a year away to termination.  12 months worth of dividends equals $1.05 The question is what are the odds that the n.a.v. of CGQ.e will raise in the next 12 months? Too risky for me even with an 18% yield  Time for me to say good bye to CGQ.e