Post by
AnEducator on Jun 08, 2023 4:27pm
NAV June 8
~$14.64. Closing premium on capital shares: ~$0.55.
Ten trading days left for the fund to rise by ~3.14% in order to reach the $15.10 target required for a resumption of distributions. The energy sector is not helping out as expected after Saudi Arabia's decesion to cut production. Progress in U.S./Iran negotiations has potentially substantial negative implications for the price of oil.
I simply cannot understand why anyone would be so enamoured with this stock. The yield is totally uninspiring even if payments are achievable 50% of the time, which is debatable, and any capital gains are adversely impacted by guaranteed payments to preferreds and ongoing management fees. Gains are also further limited because of the inflated premium.
Comment by
amugsgame on Jun 09, 2023 8:05am
Only way I can understand this is uneducated retail investors (we know this isn't an institutional product or recommended by investment advisors) who just see the div at 23% and know nothing of the NAV complications. They also see a liquid asset as opposed to the lightly traded (but more reliable) funds like LCS. No surprise that there is a lot of stupidity in the market
Comment by
TahliaMacAdie on Jun 12, 2023 3:21pm
This post has been removed in accordance with Community Policy