Dividend 15 Split Corp T.DFN

Mouserman

[Doodlebug]

With a good day in the markets on Monday , l sure hope its not a one off. .Could you please explain how the NAV of DFN works and how considering the underlying securities , the price is down and not up. Somewhat bewildering.

[Clarke123]

If you scroll back and see messages from last few weeks, quite a few of us highlighted the risk of DFN trading with way too much premium. Lately the premium went in excess of 20%, and at times even over 25%. As such, if NAV drops below 15, the dividend is skipped, irrespective of where people are trading in market. I am surprised though that they think NAV is under 15. My calculations show much

[PattersonW]

  Great point, I started a position at $6.74

[mouserman]

The reason for DFN being down early in the day, while others are up is the very high premium. Some i am sure are shortselling speculating that with the volatility and more downside to come, that DFN should trade at a much lower valuation. However today, DFN has gained about 30 cents on the close @ sept 30 , so My guess is that the UNIT NAV now is around 15.85 or so after distributions are paid.