grinninbrit71

Cornerstone Progressive Return (CFP): An Overcrowded Short

I'm a little worried how Dan can take an understandable mistake in Krispy Kreme... a good lesson many of us have learned... but then take it towards rationalizing a long investment in a CEF trading at a 50% premium, with underlying NAV being equity class holdings that have just experienced a 60% ramp, because a articles from 2 authors seem to indicate "crowd." I realize the point is that fundamentals should be thrown fully out the window for the sake of technicals, sentiment, and level of short interest (which best I can tell here is about 3 or 4%.) But nonetheless, out of everything out there, you come to the 50% prem after 60% underlying run for supposedly one of the best long positions of a field of thousands?

Cornerstone's Monthly Dividend Payments: Don't Be Fooled

Amazing how the long's still call these large payments "dividends" They are large, but mostly return-of-capital... meaningless other than to confuse people that are willing to invest but not willing to take accounting 101 to understand that most complex of terms called "income."

Angry at the media ? Why because they haven't educated the public enough on the words Income or Ponzi ?

In the classical sense this isn't Ponzi because assets match liabilities. But at the same time one of the "Cornerstone's" of Ponzi schemes is the payment of an aggressively large distribution which is not "income" but rather return-of-capital. Greed then runs rampant. Of course in a true Ponzi scheme, that information isn't typically advertised to investors. This is the genius of this fund. Just go ahead and fully disclose all over the place that its return of capital, but investors will have enough greed to overlook that tiny fact....... So amazingly simple!

Interesting question from "Dividend Growth Investor" as to whether this fund is investing in il-liquid securities to have traded at such wild premiums and for so long. Amazing is yet again, right on! Pure S&P large cap vanilla holdings. For something with vanilla holdings to hang so inefficiently over the edge of the cliff for YEARS indicates either illegal manipulation/market relationships or just terrible design of the market and its regulations. That guys mad at the media and not the SEC for letting this sadness develop? Of course, again, the genius here is that all was fully disclosed, makes it hard for the SEC to care !!!!!!

Greedy songbirds will chirp to no end. And the songbird isn't the original poster, but anyone who ever suggested to a fellow citizen to buy this at a massive premium, selling them on this muck.