TSX:CTF.UN - Post by User
Comment by
ChupacabraBuenoon Mar 11, 2014 11:49am
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Post# 22308027
RE:Collapse fund
RE:Collapse fund
Shareholder value is likely to increase one way or another from the current discount. People (you for example) requested that they cut their div to preserve capital. They did just that. But regardless of what this new tack means in the long run, it's not surprising that the change pushed share prices down in the short run. Those who'd bought for the high yeild were now holding (or selling) something different than what they'd bought. Investors punish change & surprises - even changes for the better. That's unfortunate for existing shareholders that are now underwater. But it's good news for those looking for reliable cap gains as they can expect a narrowing of the discount in the future, as well as a higher NAV.
- GLTA!