Dividend 15 Split Corp T.DFN

Quadravest will not payout

[flamingogold]

While Quadravest wants to boost their star fund any way they can, they will only do it when it's on the cusp and the market momentum is positive. We are now in the midst of a June selloff. And July will be weak too. I do not believe they choose an earlier date for a NAV over 15 to payout. If they did, it would be a big mistake.

[azzurri]

Whether it pays out this month or not, if NAV stays below $15, it eventually will not pay out and those supporting the premium will begin to sell their holdings. If NAV closes below $15 again today, I may begin shorting this stock. Anyone else believe it is currently a good candidate to short?

[flamingogold]

I don't play the short side, but if I did I would say this is a very good candidate at the moment. It's very unlikely that Quadravest will declare a distribution this month and with a share price (currently) at $5.16 and a NAV well below the threshold, this one is ripe for a short.

[Mmb060]

IMO, DGS is a better canadiate to short since its trading at larger premium.    BUT not paying a distribution will definitely hurt investors in a more noticable way.

[mouserman]

Not sure that DGS premium is much bigger than DFN's % wise... at least today. DFN is down 47 cents since the MAY 31 update... and that leaves the value of the commons at $4.74 So trading at a premium of 40 cents or nearly 8.5%

[azzurri]

For me, this doesn't become a shorting candidate until the NAV is in jeopardy. BDIV is almost 10% of the holdings and BDIV NAV has been in and around $20 since March. Perhaps investors are comfortable paying the premium for DGS as the monthly distributions continue to be paid and its most important holding holds.

[flamingogold]

What is your meaning of when the NAV is in jeopardy? Sure, this is not like a mining stock that can go to zero. But, when overall general markets are printing multiple days of record highs, yet the NAV here is still below the threshold to pay, that to me is a warning sign. Same goes for DF and also LFE. These 3 have been barely hangling on, now all of them are below payment status. Yet, markets

[ABP123]

They might do what they did in April.  Wait until the 22nd or 23rd.  Just in case things bounce back.   I am sure some are holding on just in case.

[mkqtrader]

I am not too comfortable comparing DFN (and by association DF and LFE) with the general markets because these funds are solely based on banks, insurances and very little more while the general market has a much broader spectrum of sectors... We all know why banks are not doing too well, same as the insurances and other financial corporations while technology has been the real deal for the last few

[flamingogold]

I like to look at both NAV and momentum. Ultimately, it is the NAV that determines the value of these funds. But, the direction of that NAV is very often going to be determined by the general direction of the market. In my opinion, it is not comforting to dive into a split fund when it's straddling the payout level while markets are at all time highs but losing some steam.