Premium Income Corp T.PIC.PR.A

concerned about what happened in 2010

[oldtrustguy]

I am concerned about what they did in 2010 after the big hit in 2008

NOV 1 2010

class A shares were consolidated on Nov 1-2010 on the basis of 0.738208641
new shares for each class A held.

This raised the NAV by about 2.00 to 7.62 as of 2010-11-04

The previous NAV on 2010-10-31 was 5.58

I quess they felt that a NAV of 5.58 was not good enough.

Could this happen again?? any comments

[Donwaan]

There isn't much of a run-up on the A shares heading into ex-dividend date this quarter so your concerns may be well founded oldtrustguy. The distribution increased after the November 2010 consolidation from .15 to .20319

[mouserman]

PIC.a trading at a very nice premium to NAV as far as the A shares are concerned. Last stated NAV for the commons ( PIC.a) was .60 to JULY 9... Nice tho that they have kept on paying the commons, despite the low NAV, even if it is at a reduced rate.

[Donwaan]

Do you see a risk of a possible share consolidation happening again mouserman?

[mouserman]

Well this COVID situation is a whole new economic environment , the likes of which we havent seen in our lifetimes. SO anything is possible. I dont think they are in that bad a shape, and i think at worst they may cut the dividends completely  for a  while. But as it stands they are still paying out quarterly. Lets see where  the COVID  pandemic runs in the next while...

[Donwaan]

Reply from Strathbridge about the consolidation: The share consolidation in 2010 was done after a special redemption. More of the preferred class of shares were redeemed than the Class A shares. The outstanding number of shares of one class must equal the other. As a result of this mismatch of redeemed shares for each class the Class A shares outstanding were reduced. The net asset value of each