CORNERSTONE TOTAL RTRN FD IN (AMEX:CRF)
A diversified, closed-end management investment company.
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High-fee fund whose dividend is not as high as it looks: some of that distribution is CRF returning to you the money you paid for the stock.
http://seekingalpha.com/article/38086
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shouldn't be selling at a premium to NAV in a down market.
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Toast, boy, toast. So sad didn't grab CRF when it was by $20, but I'm more than sure it is to beat the lower 52W record soon.
If they couldn't make the business running for such long time, the wouldn't do that now, as well.
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CRF has underperformed the market since 1988. Net income has consistently decreased from 2003-2005. Oh well at least they offer a dividend.
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100% premium? Give me a break.
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Why repeat the argument that others have made already? Well, because the market STILL isn't listening.
Why pay a 96% premium for this overpriced turkey when you can buy many of its own holdings like ExxonMobil, GE, Johnson & Johnson, and even some open-ended mutual funds, at market value?
The 11% yield is actually a better than 22% yield of the NAV. The asset base will continue to disintegrate. Longs will be left with ice cream empires, melting in the hot sun.
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Why not, everyone else hates it.
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70% premium to NAV...
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