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Douglas Albo

 
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  • Equity CEFs: A September To Forget [View article]
    The Eaton Vance option funds have had a great run but if the market rolls over, they will be vulnerable too. I like ETY, EOS, EOI, ETW & ETB. ETV is a bit pricey and EXG I don't own anymore since I'm concerned about it maintaining that distribution.
    Sep 30 09:22 PM | 1 Like Like |Link to Comment
  • Equity CEFs: A September To Forget [View article]
    Not really. Investors like to think that premiums/discounts make sense and there's a reason why a fund trades at a perpetual premium or discount. I think that's BS. Most investors are pretty clueless in these funds so I don't give the valuations much credibility.
    Sep 30 09:11 PM | Likes Like |Link to Comment
  • Equity CEFs: A September To Forget [View article]
    I can usually find shares to short but not always. The larger funds tend to be easier to find shares but you might have 10,000 to short one day and zero the next. And then sometimes you'll have to buy them back before you'd like if your B/D loses their marginable shares.
    Sep 30 09:04 PM | Likes Like |Link to Comment
  • CEF Strategies: The PIMCO CEFs - Opportunity Or Warning Shot? [View article]
    I thought he would retire but I didn't think it would have that large an impact on their funds.
    Sep 29 10:39 PM | 1 Like Like |Link to Comment
  • Equity CEFs: Funds With Strong NAVs And Weak Market Prices [View article]
    Well, unfortunately, DSE happened to be the one MLP I wrote about earlier because it was a new issue and I was warning investors about it. I suppose if you had listened to me a couple months ago, you could have saved yourself some money and sold at $20 (I was actually short at about $20.05).

    In these kind of situations, emotions rule the day. Investors are just going to sell DSE at any price now regardless of the discount. It certainly has gotten worse than I expected but I think you can still make money in DSE if you are patient and wait for opportunities when everyone is selling on emotion.
    Sep 25 02:17 PM | Likes Like |Link to Comment
  • Equity CEFs: Funds With Strong NAVs And Weak Market Prices [View article]
    Virtually all of the MLP CEF distributions is Return-of-Capital because of the way MLPs are structured. So not only are the distributions from MLP CEFs tax advantageous, you also don't have to worry about K-1 forms to file like you would if you owned MLP's directly.
    Sep 23 02:45 PM | 1 Like Like |Link to Comment
  • Equity CEFs: A Fund Which Probably Should Just Go Open-End [View article]
    Well, I confess I was getting impatient with it as well.
    Sep 21 10:45 AM | Likes Like |Link to Comment
  • Equity CEFs: Buy Alert On DSE Right Now [View instapost]
    Too new. Won't know details for another month or two.
    Sep 21 10:11 AM | Likes Like |Link to Comment
  • Equity CEFs: Buy Alert On DSE Right Now [View instapost]
    Yes, a hedge. I'm nervous about the broader market and AMJ is just off its ALL-TIME high so I think it makes a good hedge just in case. Odd to see these funds under this much pressure when their benchmarks are still doing so well.
    Sep 21 10:10 AM | Likes Like |Link to Comment
  • Equity CEFs: Buy Alert On DSE Right Now [View instapost]
    Today's drop brings DSE to a -9.1% discount which puts it in the middle of the pack of MLP CEFs. But the yield is now at over 7% which puts it towards the top and CEFs tend to be priced on yield. I'm not saying it won't get cheaper but after the drop it has suffered while its NAV has performed well, this is a good entry point IMO.
    Sep 19 08:12 PM | 1 Like Like |Link to Comment
  • Bubble Stage Of This Bull Market May Be Nigh [View article]
    James, you've been right as rain in your articles, congrats. The bubble that occurred in the NASDAQ when it ran up a stunning 87% in the span of about 6 months from Oct 1999 to March 2000 was during a time in which NASDAQ stocks traded in fractions. The changeover to decimals didn't start until 2001.

    I remember vividly during that run up period that many high flyers were trading at 3/4 pt (75 cents) to 1 pt ($1) or more spreads back then and even the most liquid NASDAQ names were typically trading at 1/4 pt (25 cents) to 1/2 pt (50 cents), certainly a lot higher than 1 cent or 2 cent spreads today.

    I've argued that 5000 on the NASDAQ back in 2000 was a bubble in large part because of those fractional spreads and that the NASDAQ would be closer to 7000 or 8000 today if it were still trading in fractions. Everybody likes to claim that the NASDAQ still has not reached its 5000 all-time high threshold and thus, may be giving the impression that there is more room to run even though I doubt if the NASDAQ would have ever reached 5000 in early 2000 if stocks were traded in decimals like they are today. Your thoughts?
    Sep 19 09:27 AM | 3 Likes Like |Link to Comment
  • Equity CEFs: A BlackRock Energy Sector Fund That Gets No Respect [View article]
    Not really. CEFConnect just crunches the numbers forwarded to them from the fund sponsors in their filings. BGR had a $2.50/sh capital gain distribution included in their semi-annual report dated 4/30/14 so plug that in. Plus, UNII does not include option-income...only investment income (portfolio dividends and interest). Page 111 of the semi-annual report shows the Net Investment Income and excess distributions for the 6-month period.
    Sep 9 10:26 AM | Likes Like |Link to Comment
  • Equity CEFs: Buy JLA Over QQQX [View instapost]
    Since JLA shareholders will be converted to QQQX, the more QQQX goes up, the better for current JLA shareholders. Now you could lock in that 4.8% arbitrage spread (as of article date) by shorting QQQX but if QQQX goes up more than JLA before the conversion, then the arbitrage spread will just widen (assuming NAV ratio stays same).

    Premiums and discounts are irrelevant though you could get an approximation of the arbitrage by comparing the two funds valuations. More accurately though, this is all based on the NAV ratio of the funds and the market price of QQQX to determine what JLA is worth.
    Sep 8 10:04 AM | Likes Like |Link to Comment
  • Equity CEFs: A Fund Which Probably Should Just Go Open-End [View article]
    For those who stuck with NIE, congratulations! Allianz just declared today after the close, 9/5/2014, NIE's distribution would be raised 35% to $0.38/share from $0.28/share.

    That is a VERY large increase and bumps the current market yield up to 7.4%. See, good things come to those who wait!
    Sep 5 05:22 PM | 1 Like Like |Link to Comment
  • Equity CEFs: New Kids On The Block [View article]
    Yes, I saw it. Its included in the GDV Shareholder Commentary dated 6/30/14 on pages 24-26.

    http://bit.ly/1rPVuEY

    So GGZ was only about 20% invested as of 6/30/14. Certainly higher by now but probably still holding a lot of cash. I think that's good, particularly if we get a pull back. NAV won't move much right now.
    Sep 5 10:54 AM | 1 Like Like |Link to Comment
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