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Ajay Kalra

Ajay Kalra
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  • Equity CEFs: QQQX/JLA Merger Update  [View instapost]
    Hi Philipsonh,

    Yes, I meant that JLA is currently at a mild discount to how the merger is to take place. Formula has been mentioned in various posts here.

    Final Price of JLA = Price of QQQX * (NAV of JLA / NAV of QQQX)

    It comes out to be 13.797 if it was to happen just now. I am guessing it will be price as of close on Friday.
    Dec 15, 2014. 12:05 AM | Likes Like |Link to Comment
  • Equity CEFs: QQQX/JLA Merger Update  [View instapost]
    Philipsonh,

    Merger is actually effective on Monday 12/22. It looks like we can trade JLA till this Friday:

    http://bit.ly/1ssT546

    <>
    Nuveen Investments, a leading global provider of investment services to institutions as
    well as individual investors, today announced that the restructuring of Nuveen’s suite of equity option closed-end fund will
    now be effective prior to the opening of the New York Stock Exchange on Monday, December 22, 2014.

    </>

    I computed the discount yesterday. I think it was coming out to be 13.79 for JLA.

    Ajay
    Dec 14, 2014. 08:00 PM | Likes Like |Link to Comment
  • Ready For The Holiday Shopping Season - In Closed-End Funds? [View article]
    Lot of CEFs are on sale now, similar to last year. Last year it bottomed around 12/15 and it was municipals that were taking the hit. This year its the HY and Emerging markets eg HIX, PHF, TEI, EHI, BWG, EHI, PCI etc.
    Dec 13, 2014. 08:28 AM | 1 Like Like |Link to Comment
  • Equity CEFs: The Nuveen Equity Option CEF Restructuring/Mergers Delayed Again [View article]
    Doug,

    Looks like JLA merger was approved. News release went out at about 2:45 pm EST.

    Its strange that JLA hasnt jumped on this.

    Ajay
    Nov 25, 2014. 04:06 PM | Likes Like |Link to Comment
  • Will ETRACS 2x High Dividend, Low Volatility ETN Really Return Either? [View article]
    I have been watching HDLV since its inception. I must say that its performance was excellent in the downturn that immediately followed after it was introduced. Note how it hardly went down to the period till 10/15:

    http://bit.ly/1xxXLnP

    I am still watching it. I don't like its low volume as of now. It appears this ETN or the underlying index is not necessarily for yield but for providing a buffer in down times. I am so far impressed by its performance. Yield actually is pretty good considering the low volatility it provided. Its too short a period to fully judge this.
    Nov 13, 2014. 10:46 PM | 1 Like Like |Link to Comment
  • Equity CEFs: QQQX/JLA Merger Update  [View instapost]
    Don't know whats going to happen on Monday(in shareholder's meeting) regarding the merger; If the merger was to happen as of close yesterday, JLA should be priced at 14.71, a gain of around 11%.
    Nov 13, 2014. 08:26 AM | Likes Like |Link to Comment
  • We Kill You 'Til You Die! [View instapost]
    Hmm... For me over 8% on NAV is red flag, not withstanding PIMCO's CEFs. My experience has been (generally) over 8% on NAV will lead to distribution cuts. Obviously earnings matter as well.
    Nov 3, 2014. 09:28 AM | 1 Like Like |Link to Comment
  • We Kill You 'Til You Die! [View instapost]
    > I'm employing what I consider to be the most important
    > screening tool - the distribution rate on NAV of less than 10%.

    I think you mean 8%.
    Nov 2, 2014. 06:23 PM | 1 Like Like |Link to Comment
  • Equity CEFs: The Nuveen Equity Option CEF Restructuring/Mergers Delayed Again [View article]
    Thanks for updating us. I was about to ask you about this in your previous thread, as you had mentioned that yesterday was the meeting about it.

    I guess the best case scenario is that its approved on 11/17. That would mean it might take another 1 to 3 months(from your previous comment/post) after it; so in best case we get at least 1 or 2 more divdends from JLA if the merger takes place. Otherwise we can just hold it and if the market doesnt take off (unlikely) like 2013, JLA is a good pick for sideways to marginally up market due to its relatively defensive posture.
    Oct 21, 2014. 08:31 PM | 1 Like Like |Link to Comment
  • Kill The World [View instapost]
    I got out of NDP completely. It was my worst holding. Its volatile and no one really cares about its discount. In addition because it reports its NAV once a week or so, its discount is really nothing like what shows up on scans. Volatility only increases or decreases the discount. For MLP CEFs, I trust the CEFs which report daily like FPL, FEI, MEI, JMF etc. Also, liquidity is higher on these CEF compare to NDP.
    Oct 20, 2014. 08:12 PM | Likes Like |Link to Comment
  • Kill The World [View instapost]
    During the recent swoon, I bought MORL under 20 and CEFL at 22.50. Both very small amounts.

    I did get out of all my MLP CEFs. Some I didnt want to but NAV volatility is very high for my taste. All at a loss. I did however put the proceeds to ETB, ETW and ETY all near their lows. Bounce back in these hasnt been as much as MLPs but that was expected. JLA is also compelling at these levels. Its supposed to be merged to QQQX at over 10% from current levels. We will know tomorrow if that is happening or not. I did buy JLA at 12.07 and is up 5% from there. I also added to BWG and EHI. I was way overweighted in MLP CEFs which I reduced now. Tomorrow I plan to buy LEO and CXE in Muni space (I already own DMF), unless they jump.
    Oct 19, 2014. 11:00 PM | 1 Like Like |Link to Comment
  • Buy JLA [View instapost]
    JLA buyout price as of close of prices on 10/17: $14.07
    Oct 17, 2014. 11:00 PM | Likes Like |Link to Comment
  • Buy JLA [View instapost]
    Not to nitpick, but you really get 741.37 JLA shares for every 1000 QQQX shares based on today's closing
    price :-)

    I will take those extra shares :-)
    Oct 15, 2014. 10:04 PM | Likes Like |Link to Comment
  • Buy JLA [View instapost]
    Update:

    QQQX NAV = 18.25; Price = 18.20
    JLA NAV = 13.53; Price: 12.25; Discount is 9.5%

    Projected JLA price (if it merges with QQQX) at 10/15 close:

    18.20 * 13.53/18.25 = 13.49

    a 10.1% increase over JLA's current price.
    Oct 15, 2014. 08:23 PM | Likes Like |Link to Comment
  • Buy JLA [View instapost]
    Glad you mentioned it. I did buy it in AM without looking at your post at 12.07. I did the computation last night and I was surprised that it took a hit yesterday while QQQX was at a mild premium. Today's morning downtick was a gift. Based on yesterday's closing price it was coming out to be 13.72, which alone was great. Today is better.

    I did buy ETB, ETW and ETY also today, most for the first time. I somehow got ETB at 14.01 today (low of the day), although a partial fill).

    Unfortunatley I had to get out all of my MLP CEFs in last week or so. Way too much volatility for me and most for a loss.
    Oct 15, 2014. 04:46 PM | 1 Like Like |Link to Comment
COMMENTS STATS
171 Comments
107 Likes