User 161034

CEFs to Weather a Continued Storm in Equities

Qniform:
You are absolutely right.
Leverage IS one of the issues we check - - - should have included that column in the chart!

Thanks for calling my attn to this. I will look more closely when attaching charts .

CEFs to Weather a Continued Storm in Equities

Rich, This just in form ING - - - they gave notice of a share repurchase program, up to 10% of outstanding common stock. Purpose is to reduce or eliminate the discount.

Others could be planning the same move to enhance share value of their CEF's.

This is what I meant by possible growth, along with the dividends.



On Jan 05 07:09 PM richandmer wrote:

> Curious why you would recommend these CEF? They have all seen their
> dividends and the stock price consistently drop over time. There
> is not a single one with a stock price higher than its IPO price.

>
>
> The only possible value is a trade. They have all dropped significantly
> and may see a bounce, but as an investment - NO.

CEFs to Weather a Continued Storm in Equities

In answer to Rich:
IPO price seems meaningless at this point. Value is in the recovery of the current discount, plus some divvys. These were meant mostly for seniors who are looking for income, plus some growth.

OldTrader: Yes, CWF has high mgnt fee, but their Income Yield as opposed to Distribution Yield, is worth noting.

Granger: Thanks, you caught the message ! All these are near their max discount to NAV, and growth should come as the discount trends back to historical norm. True, NAV could continue to shrink, which is reason for diversifying, and avoiding those with excessive leverage and/or questionable FMP assets (Funny Money Paper).

Thanks to all of you for your comments, and best wishes for success in 2009.