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Douglas Albo  

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  • 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
  • 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, 2014. 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, 2014. 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, 2014. 09:27 AM | 4 Likes Like |Link to Comment
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