Seeking Alpha

Douglas Albo

View as an RSS Feed
View Douglas Albo's Comments BY TICKER:
Latest  |  Highest rated
  • Equity CEFs: A BlackRock Energy Sector Fund That Gets No Respect [View article]
    Really? Well, that really makes my day! I hope they continue to do well.
    Jul 27 08:25 PM | 1 Like Like |Link to Comment
  • Buy GRX, Short XLV As A Hedge [View instapost]
    Yes, I should have reiterated that the NAV would be reduced with the added shares and cash infusion. I thought it would only be reduced a few % like I said in this instablog on June 13th...

    "At a $9.80 market price currently, trading without the rights, I believe this drop is overdone. Considering GRX has an NAV of $11.28 and this rights offering will bring down the NAV only a few percent according to my calculations, that is still an extremely wide market price discount."

    Turned out to be more based on the drop but in the long run, it should really only be a temporary blip.
    Jul 27 07:12 PM | Likes Like |Link to Comment
  • Equity CEFs: A BlackRock Energy Sector Fund That Gets No Respect [View article]
    Yes, I do believe BOE is a better choice now. I don't own EXG any more choosing to focus on ETY, which doesn't have as much overseas exposure but is otherwise similar to EXG. EXG's NAV is only up 7.2% YTD vs. BOE's NAV up 10%. You give up a little yield but BOE is also at a -12.3% discount vs. EXG at -8.7%. Can't really comment on their portfolios of stocks other than are both at about 45% US based.
    Jul 23 09:28 AM | 2 Likes Like |Link to Comment
  • Equity CEFs: A BlackRock Energy Sector Fund That Gets No Respect [View article]
    I would stay clear of BQR. Reminds me a bit of BCX in that it has just been in the wrong portfolio of stocks. Yes, it can be volatile and recover quickly but I wouldn't be initiating positions in BQR when you could buy BOE or BGY, which are more diversified globally. I think you want to stick with funds that are growing their NAVs, not try to bottom fish.
    Jul 23 08:43 AM | 2 Likes Like |Link to Comment
  • Equity CEFs: A BlackRock Energy Sector Fund That Gets No Respect [View article]
    BCX has had a difficult time due to its portfolio of underperforming stocks. Not sure what its benchmark would be but its NAV is actually down YTD and it didn't have a great year in 2012 either. Though I suppose you could argue that a commodity stock fund is due to rebound, I personally would stay clear of a fund that has concentrated its portfolio in the wrong names for awhile now. BCX went public in 2011 and has already lost a lot of NAV. Not good.
    Jul 23 08:26 AM | 2 Likes Like |Link to Comment
  • Buy GRX, Short XLV As A Hedge [View instapost]
    A hedge is only suggested if you feel you might be too heavily weighted in GRX with the added 1/3 shares and want to hedge your downside.
    Jul 22 10:15 PM | Likes Like |Link to Comment
  • Buy GRX, Short XLV As A Hedge [View instapost]
    Prior to last year, GRX had no regular distribution which contributed to its wide discount historically. And even though GRX's yield is "only" 4% now, unlike a lot of other CEFs that trade at wide discounts because of low to no yield, GRX compensates for that with its enhanced appreciation potential.
    Jul 19 06:02 PM | Likes Like |Link to Comment
  • Hidden Treasure In This 7% Tax-Free Yield Play [View article]
    Its because muni CEFs tend to move up and down together unlike equity CEFs. However, the PIMCO muni CEFs seem to operate in a different universe and the whole point is that they receive superstar status based on premium valuations w/out necessarily better NAV performance.
    Jul 19 09:24 AM | Likes Like |Link to Comment
  • Hidden Treasure In This 7% Tax-Free Yield Play [View article]
    You're all drinking WAY too much of the PIMCO cool-aid. Compare the total return NAV & Mkt price of PML with a typical Nuveen natl muni bond fund with a similar yield...NAD.

    Here's a 1-year, 3-year & 5-year total returns at NAV & mkt price as of 7/17/13.

    1-year NAV, 3-year NAV, 5-year NAV

    PML: -1.2%, 25.4%, 12.3%
    NAD: -1.4%, 22.1%, 37.4%

    1-year Mkt, 3-year Mkt, 5-year Mkt

    PML: -6.9%, 23.8%, 12.0%
    NAD: -7.3%, 15.5%, 39.7%

    The numbers don't lie and I've doubled check with several sources, not just the Allianz/PIMCO and Nuveen websites. Total return assumes all distributions and cap gains added back but not reinvested.

    Now consider that NAD trades at a -9.3% discount and yet went public with the same $15 market price ($14.33 NAV) just a few years earlier than PML. Now I'm not doing any other research other than their historic performances but as you can see, the Nuveen muni funds aren't necessarily that much different than PIMCO, and on a 5-yr basis, NAD crushes PML. Then consider that the Nuveen muni funds mostly trade at hefty discounts vs. the PIMCO muni funds at premiums. Something to think about.
    Jul 18 12:28 PM | 2 Likes Like |Link to Comment
  • Equity CEFs: Top And Bottom Fund Performers Through July 12 [View article]
    Where does the article say there is a 10% yield on GRX? All my tables have GRX at a 3.9% yield.
    Jul 16 08:57 AM | Likes Like |Link to Comment
  • Equity CEFs: Top And Bottom Fund Performers Through July 12 [View article]
    Along the left side above, there is a link to Capital Income Management. That should take you there.
    Jul 16 08:55 AM | Likes Like |Link to Comment
  • Equity CEFs: What Rotation? Bond CEFs Still Dominate Premium Valuations Over Stock CEFs [View article]
    Might, but I doubt it. There's been plenty of opportunity for investors to sell 1/3 of their position over $10, and if they did, they would probably want to go ahead and hold onto their $9 cost basis shares if they wanted to keep the same # of shares. If you want to keep your proportional exposure in the fund, then you would not sell any shares. NAV will come down after the offering though not sure by how much.
    Jul 11 11:48 AM | Likes Like |Link to Comment
  • Equity CEFs: What Rotation? Bond CEFs Still Dominate Premium Valuations Over Stock CEFs [View article]
    http://bit.ly/18bugPp

    ...go to Composition tab and then scroll down to Quality Allocation as of 6/30/2013.
    Jul 11 11:37 AM | Likes Like |Link to Comment
  • Equity CEFs: What Rotation? Bond CEFs Still Dominate Premium Valuations Over Stock CEFs [View article]
    No. Still like NIE but wanted to make a comparison with PGP and NGZ seemed more appropriate based on similar yields.
    Jul 10 02:27 PM | 2 Likes Like |Link to Comment
  • Equity CEFs: What Rotation? Bond CEFs Still Dominate Premium Valuations Over Stock CEFs [View article]
    US Treasury Bill positions are essentially cash positions.
    Jul 10 02:00 PM | 1 Like Like |Link to Comment
COMMENTS STATS
581 Comments
429 Likes