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$11.20 0.46 (4.28%)
7/8/2008 3:59 PM

CORNERSTONE TOTAL RTRN FD IN (CRF)

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CORNERSTONE TOTAL RTRN FD IN At A Glance

Current Price: $11.20
Last Trade Time: 7/8/2008 3:59 PM
Open: $10.58
Previous Close: $10.74
Daily Range: $10.55 - $11.20
52-Week Range: $8.20 - $19.00
Volume: 32,561
Market Cap: $57.57M
P/E Ratio: 0.00
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Stock Trends

CRF VS S&P 500 (SPY)

CRF 12 month chart vs. S&P

News & Discussion Boards

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Top Bull Pitch

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Top Bear Pitch

Recs

1

CORNERSTONE TOTAL RTRN FD IN (CRF)

Avatar marc64 (98.99) Submitted: 8/16/07 12:23 PM

I'm looking to get me a bankruptcy charm.

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CAPS Players

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Recs

0

 (CRF)

Avatar stovkey1highdiv (95.39) Submitted: 5/25/08 7:37 AM : Underperform Start Price: $12.34 CRF Score: 1.55

72 % premium

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Recs

0

 (CRF)

Avatar dbhealy (99.93) Submitted: 3/27/08 7:00 PM : Underperform Start Price: $13.80 CRF Score: 2.01

Fund that used to outperform the S&P 500 marginally has taken a turn for the worse. Why, I can't exactly say. I'll be ending this pick shortly, no need to gamble here!

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Recs

0

 (CRF)

Avatar ThePessimist (99.14) Submitted: 2/12/08 12:24 PM : Underperform Start Price: $10.50 CRF Score: -12.82

CRF and CLM are evil twins. Both are closed-end funds that hold similar large-cap portfolios with top holdings such as GE, XOM, C, and MSFT. Both trade at a premium to NAV of over 40%! Why? Because both have "level distribution policies" under which they pay out up to 21% of their NAV in distributions (inaccurately called "dividends" by some). Some people who don't look closely therefore think the funds somehow actually earn a great yield, and don't understand that they're just getting their original capital back.

As the share price keeps going down (as they return shareholders' money), even the most naive investors will start to wonder what's going on. At that point, people will bail and the premium will turn to a discount.

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Recs

0

 (CRF)

Avatar Gtrinvestor (99.97) Submitted: 12/21/07 10:32 AM : Underperform Start Price: $9.28 CRF Score: -34.51

Re-load, but here is my original rant:


I don't quite get it, but it looks like both CLM and CRF pay out more in dividends than either company makes? I'm sure I'm missing something here, such as dividends aren't in earnings, but just a distribution of holdings, etc., but this is year after year. Also seeing that other CAPS players have noted that these stocks trade at a premium to NAV leads me to believe there is a little slight of hand going on to confuse the ordinary investor looking for a nice dividend?


By the way, I there is a nice MF article on this one as well which buttresses my original assumption (that dividends are higher than earnings): http://www.fool.com/investing/mutual-funds/2007/04/02/dont-o...

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Recs

0

 (CRF)

Avatar L89Corvette (94.99) Submitted: 10/08/07 6:05 PM : Underperform Start Price: $13.74 CRF Score: 0.26

shouldn't be selling at a premium to NAV in a down market.

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