Cornerstone Progressive Return Fund’s (NYSEMKT:CFP) Board of Directors, hoping no one would notice, issued a press release on Saturday morning (February 13, 2010, 9.57 am EST) over a long holiday weekend, announcing that it would be slashing its monthly distribution in-half. The monthly return-of-capital distribution per share would go from $0.205 to $0.1025 per share for the months of April, June and July.
Pre-Announcement Trading: The aggregate trading volume two days prior to the announcement (2/11/10 & 2/12/10) surged to 1,154,100 shares with a concomitant share price plunge of 15.7%. (CFP went ex-dividend on 2/10/10.) The average two day trading volume for those days was almost 600,000 shares versus a 3 month average of 167,097 shares.
For Those Investors Still Owing CFP: You haven’t been paying attention. Here are hyperlinks to the following reports regarding the lack of investment merits of CFP: