Jul. 29 at 8:02 PM
$EGGY The
$1.15 distribution will drop the share price into record low territory tomorrow below
$29. Ouch. If this fund can conservatively pay out
$10.00 in total distributions over the next 12 months, that will ease the pain unless the share price drops by the same amount between now and then (EGGY at
$18-19 in 12 months? The fund managers have to perform better than that). My concern is that the previous run from sub
$30 to
$46 occurred during an all-time record parabolic run up this Spring by the semiconductor/chip/memory sector, so what will the fund managers rely on next time for a 50%+ increase in the NAV? Clearly, that kind of move won't be repeated again any time soon. The fund managers do execute all kinds of options trades within the fund, so maybe they will successfully use some aggressive long call options to build up the NAV from all-time lows back into the low 40s by this time next year