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Douglas Albo  

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  • Buy JLA [View instapost]
    Yes, for every 1000 shares of JLA you own, you would get 740 shares of QQQX but at QQQX's current $18.25 price (which could change until the merger date). So...

    1000 X $12.25 = $12,250
    740 X $18.25 = $13,505 or a 10.2% valuation bump.

    And the merger has no impact on QQQX shareholders, i.e. its non-dilutive. They just become a bigger fund.
    Oct 15, 2014. 09:09 PM | Likes Like |Link to Comment
  • Equity CEFs: Time To Buy Some Of The Eaton Vance Option Income Funds [View instapost]
    That's actually one of the bonuses of the more defensive option-income CEFs like ETB, ETW, ETV, JLA, JSN & JPZ. Their market prices can be volatile but not necessarily their NAVs.

    That's what makes it a lot easier for me to buy and hold onto these funds knowing that their NAVs will hold up a lot better than their benchmarks.

    Yes, they can be scary volatile at times but as that discount grows, so does the yield and so does the better valuation. I just keep adding in small chunks. Eventually they will come back with the market.
    Oct 15, 2014. 03:07 PM | Likes Like |Link to Comment
  • Buy JLA [View instapost]
    The October rotation options are worthless at this point, and if the November or later rotations are in place, then they are seriously depleted as well. JLA will keep most if not all that option premium which is why JLA's NAV is outperforming right now, i.e. holding up better.

    But at some point, all of those options become pretty worthless and JLA's portfolio is exposed to further downside until the next overlay is in place. On the other hand, if the market rallies from here, then JLA's portfolio should capture virtually all of the upside.
    Oct 15, 2014. 01:18 PM | 1 Like Like |Link to Comment
  • Buy JLA [View instapost]
    I sincerely doubt "the market" really knows. In any event, JLA should be holding up A LOT better than QQQX in this market anyway. QQQX will still at a premium valuation after today.

    Besides, I don't think Nuveen will abandon the merger even if they don't get the votes this go around. I think they'll come back later.
    Oct 15, 2014. 01:07 PM | 1 Like Like |Link to Comment
  • Equity CEFs: Time To Buy Some Of The Eaton Vance Option Income Funds [View instapost]
    The Eaton Vance option-income CEFs have performed much better at the NAV level since cutting distributions a couple years ago. Then add the 10% buyback, which is still in place, plus the move to monthly pay from quarterly pay.

    All told, I think the EV option-income CEFs deserve much higher valuations today than they did a couple years ago.
    Oct 14, 2014. 09:04 AM | 1 Like Like |Link to Comment
  • Equity CEFs: Funds With Strong NAVs And Weak Market Prices [View article]
    DSE is turning out to be a lot more volatile (both at NAV and market price) than I expected, even for a leveraged MLP fund. It made a nice recovery up and over $18 earlier in the week and I confess, I sold quite a bit there because I'm just not comfortable with that level of volatility.

    Certainly, the weekly drop looks bad from the $18 level, but the fund was below $17 the week before when it appeared investors were in liquidation mode. This latest drop to its new $16.57 low seems to have more to do with the weakness in the energy MLPs it invests in.
    Oct 11, 2014. 01:18 PM | Likes Like |Link to Comment
  • Equity CEFs: A September To Forget [View article]
    You give Mr. Market WAY too much credibility. How about a 35% increase in NIE's distribution a few weeks ago as a reason that the discount should be reduced substantially? Most CEFs are valued by their yield anyway.

    NIE completed its merger with NGZ (see link below) earlier this year when NGZ was paying a 7.5% yield and traded at only a slight discount. NIE is now at a 7.7% yield and a -12% discount.

    If there was any rationality to NIE's valuation, it would be trading closer to $21, which would still be a -7% discount and a 7.2% yield.

    http://bit.ly/1qVwrtg
    Oct 1, 2014. 11:23 AM | 2 Likes Like |Link to Comment
  • 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, 2014. 09:22 PM | 2 Likes 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, 2014. 09:11 PM | 2 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, 2014. 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, 2014. 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, 2014. 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, 2014. 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, 2014. 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, 2014. 10:11 AM | Likes Like |Link to Comment
COMMENTS STATS
691 Comments
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