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MFS Charter Income Trust V.MCR


Primary Symbol: MCR

MFS Charter Income Trust (Fund) is a diversified closed-end management investment company. The Fund’s investment objective is to seek high current income, but also considers capital appreciation. The Fund primarily invests in debt instruments. The Fund also invests in corporate bonds of the United States and/or foreign issuers, United States government securities, foreign government securities, mortgage-backed securities and other securitized instruments of United States and/or foreign issuers, and/or debt instruments of issuers located in emerging market countries. It invests in a range of fixed income sectors, such as high yield corporates, emerging markets bonds, investment grade corporates, Non- United States government bonds, commercial mortgage-backed securities, mortgage-backed securities, collateralized debt obligations, municipal bonds, asset-backed securities and United States treasury securities. The Fund's investment advisor is Massachusetts Financial Services Company.


NYSE:MCR - Post by User

Comment by LTIH1324on Jan 09, 2020 12:04pm
107 Views
Post# 30534869

RE:RE:RE:Almost found a comparable.

RE:RE:RE:Almost found a comparable. I agree with Silverbullet here. Patience is important. If you have a handle on your estimate of intrinsic value, price movements shouldn’t impact your psyche (I know, easier said then done). You can be wrong in your conviction that is why you should always seek out opposing viewpoints and check your thesis – I have been wrong before and will again, but I have a largish stake in MCR as it is a conviction holding that in 3 to 5 years I see the intrinsic value as materially higher. This assumes Management execution, obviously, but their significant skin in the game gives me comfort.     

There is no real way to force multiple expansion and I see the low multiple and the price below book value as safety nets at these levels. The political headwinds may be somewhat material, but I think a lot of it is noise, and I have a high probability attached to both pipelines getting done and other work along the way – there is strong economic and political pressures in favour of building of these pipelines that doesn’t get the same coverage, but is none-the-less real. There will be bumps and it will be lumpy along the way, something small cap retail investors hate. But if you do your own work, have a solid estimate of intrinsic value and have a long term investment horizon, I don’t see the need to stress over drawdowns.  The one thing I really do want to see is material buybacks with excess cash levels.  

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