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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 Mar 04, 2020 10:19am
114 Views
Post# 30765055

RE:RE:RE:Fourth Quarter Results

RE:RE:RE:Fourth Quarter ResultsHi Savy,

You could be right, but I don’t think there is much to suggest an insider known big negative Q4 surprise. I chalk the drop in share price as a combination of headlines and sentiment against Canadian energy. The protests, blockades and press attention on the CGL & TMX (also announced revised cost estimate) over your defined timeframe likely lead to some forecasting increased probabilities for further delays or cancelations – which shook some investors. The coronavirus and the corresponding energy price drops only exacerbated that.  Moogul – who has insightful posts on here – summarizes the political sentiment many share “energy in Canada is dead”.  I see this sentiment maintaining for a while, but when people are throwing in the towel / frustrated it can lead to opportunities. OT: Moogul – I just msged you to discuss TII.v.

I think these projects will ultimately go through (Macro is making progress on their CGL spreads every month) and the cash flow from these justify an attractive return from the market price (below a conservative book value) – with an effective buy back program it could be very very attractive. However, investing against a frustrated investor sentiment is hard - with a retail investor base, the volatility to headlines is heightened.

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