Cornerstone Strategic Value Fund (CLM)

[bar1080]

Another crappy thing about this fund is current NAV numbers are hard to find. CEFConnect and Cornerstone's own site have old numbers from 4/14/22.
http://www.cornerstonestrategicvaluefund.com/net-asset-value.html

In any case, the huge premium has plummeted lately. As I've often said, "never pay a substantial premium of a Closed End Fund."

CLM's own site warns about that: "Although the Fund’s Common Stock has frequently traded at a premium to its net asset value during the past several years, shares of closed-end funds often trade at a discount from their net asset value."

[bar1080]

So you traded a rights offering that didn't exist?

"That's because there isn't one."

[The_Free_Nebula]

I hear you.

[blackcat]

It's the easiest way to trade the RO. Subscribing to the offering is just a PITA as far as I'm concerned

[The_Free_Nebula]

I figured that but did not act on it. Thank goodness I don't have a tremendous amount of shares. Live and learn.

[blackcat]

It's all to do with the rights offering. I trade it a little differently. I sold a chunk of shares at $14.45- when the RO was announced and I will buy them back soon.
I won't add any because the position is big enough. I will use the large leftover cash profits to start or add to another position.

he or she will be entitled (but not required) to purchase one new share of the Fund at a subscription price equal to the greater of (i) 112% of net asset value per share as calculated at the close of trading on the expiration date of the offering or (ii) 65% of the market price per share at such time.

The subscription period will commence shortly after the Record Date, and will expire at 5:00 p.m., EDT, on Friday, May 20, 2022, (the “Expiration Date”) unless extended.The subscription period will commence shortly after the Record Date, and will expire at 5:00 p.m., EDT, on Friday, May 20, 2022, (the “Expiration Date”) unless extended

[The_Free_Nebula]

CLM falling off the cliff

[leftovers]

Kinda explains why they need to do another Rights offering!

[bar1080]

Wow, CLM now trading at premium of 52% to NAV, CRF about the same.

Was looking at PIMCO funds that traded at insane premiums in 2021. Some like PDO are now at discounts. Fairly deep discounts. PIMCO had juiced some returns by going out dangerously longterm with maturities.

https://www.cefconnect.com/fund/PDO

[blackcat]

That's because there isn't one.

[bar1080]

Are you going to actually look beyond the reported flashy payout?

Took me seconds to find this. Now read it.
https://seekingalpha.com/article/4497997-clm-cef-another-rights-offering

[bar1080]

Advanced research on Cornerstone Funds should include the work of Parsa Kiai, a Cornell educated MBA investment partnership manager who examined those gimmicky funds and contacted the SEC about their "odd" practices. I wrote about him on the CRF board in 2018.

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=144357013

https://www.scribd.com/document/100643429/Cornerstone-Letter-to-SEC

[GO4AWILDRIDE]

leftovers

Do you have a LINK to this RIGHTS OFFERING?

I could not find one.



GO4AWILDRIDE

[leftovers]

Evaluating CEFs: CLM Does Another Rights Offering

CLM has a yield of 15.5%. This is very attractive if the distribution can be supported.

I continue my series digging into CEFs beyond the yield with a look at CLM.

I don't like CLM because it doesn't support its distribution. But investors can make money exploiting the price that the popularity of the fund produces.

[bar1080]

Hi Bunkey. I've followed CRF and CLM for years. Wouldn't touch the gimmicky Cornerstone ETFs tho.

[blackcat]

Not a lot to say about it. Pays it's dividend every month which is why we own it.

[bunkey]

Nobody following this board

[Glider549]

VOO and VTI expense ratio is still .03%

[bar1080]

CLM has a sky high expense ratio while its holdings are similar to an S&P 500 index fund. And you can get index funds with almost no expenses. My long-held Vanguard Total Stock Market fund had expenses of 0.03%, the last I looked.

Expenses add up over time. I've owned that Vanguard Indexer for 30+ years!

[bar1080]

Damn, it was nice waking up to appreciating stocks most mornings for the past decade, but I've known the flip side. The normal state of CEFs over the past century is they sell at discounts. That's when to start shopping.

One of the first stocks I did well with was a CEF that was eventually liquidated at face value after I bought it at a 1/3 discount! I currently have a small amount of ASX in my kids' accounts, the Adams Diversified Equity fund [ADX] which used to be known as Adams Express. Pretty much a closet indexer but it trades at a 13% discount. It almost always trades at that discount, but there's some slight chance it could be liquidated one day.

As I've often said, I'd never pay a premium for a CEF, especially a gimmicky one like CLM. In fact I don't advise buying ADX, which has an expense ratio of about 0.60%.... high by modern standards.

Don't buy ADX unless you can get it for >15% under NAV.

[leftovers]

BIG Christmas Covid Market dip today. all stocks going take a hit. CLM at nearly a 40% premium is very 'Dangerous' for sure !

[bar1080]

Dangerous! CLM's premium keeps rising -- now about 39%!-- while the underlying Net Asset Value remains fairly flat.

What stocks are held by CLM? ... mostly "closet indexing" stuff like Amazon, Apple, Microsoft, Alphabet, Berkshire, JP Morgan... Why would anyone pay a significant premium for such???

https://www.cefconnect.com/fund/CLM

[leftovers]

Net Asset Value

As of 12/17/21 As of 12/17/21

Name Ticker NAV Price Premium/Discount to NAV Shares Outstanding

CORNERSTONE STRATEGIC VALUE FUND CLM $9.93 $13.82

39.17% 119,607,192

[leftovers]

exactly why I think the whole market is at risk of a change in weather? I mean the market is at all time highs so .......???

BRK hit a record high yesterday. Buffett still has it, thanks mainly to Apple.

[bar1080]

Last two years, yes. But when I analyze stocks for my own investment I go back to the Great Recession and, if possible, even the Dot Com bust of 2000-2002 to see how they perform in dire times.

BTW, interestingly, BRK hit a record high yesterday. Buffett still has it, thanks mainly to Apple.

[leftovers]

Yes that is what it was from. Looks like the price heard the news?


certainly the last 2 years it has done well though. whole market at risk right now IMHO

[bar1080]

Think you're referring to yesterday evening's SA write up. Interesting that it says CLM is now trading at a [very dangerous] 35% NAV premium. Is 35% right? In recessions, those premiums tend to decline, and can even go to discounts.

https://seekingalpha.com/article/4475650-cornerstone-strategic-value-fund-cef-overpayments-depleting-nav

[leftovers]

Cornerstone Strategic Value Fund: Overpayments Depleting The NAV

[The_Free_Nebula]

nice increase

[blackcat]

For 2022. I have never known them to change the amount during a calendar year.

Cornerstone Strategic Value Fund, Inc. (NYSE American: CLM) and Cornerstone Total Return Fund, Inc. (NYSE American: CRF), (individually the “Fund” or, collectively, the “Funds”), each a closed-end management investment company, announced that in keeping with each Fund’s previously adopted monthly distribution policy, each Fund is declaring the following distributions, which have been reset for the calendar year 2022.
Record Date Payable Date Per Share
CLM January 14, 2022 January 31, 2022 $0.1808
CLM February 15, 2022 February 28, 2022 $0.1808
CLM March 15, 2022 March 31, 2022 $0.1808

CRF January 14, 2022 January 31, 2022 $0.1734
CRF February 15, 2022 February 28, 2022 $0.1734
CRF March 15, 2022 March 31, 2022 $0.1734

[blackcat]

Should always do on the lst vusiness day of the month.

Dividend will be recalculated on today's EOD NAV.

[Chaz1951]

FYI, Dividen went it my TD account this AM.

[TMaga]

That's the smart way. The brokerage houses rip you off.

[Chaz1951]

I don’t do drips , I buy and sell on my own

[TMaga]

I stopped doing drips with TDA. They always seem to delay the purchase of your dividend profits and buy the shares at a higher price. I would do the buying yourself preferrably the day of the payout or the very next day to maximize the number of shares you can purchase. JMO

[Chaz1951]

I TD Ameritrade, my cash comes in after midnight , it is posted in the AM on the last day.
Are you sent up to get stock (drip) or cash to account?

[Ray1955]

Thanks, I'll be more patient.

[Imagineer66]

Mine just posted today.

[GO4AWILDRIDE]

Ray1955

Yes, the pay date was 9/30.

Depending on your broker and when they receive those divi's it could take a day or two to get it into your account.

I would call your broker and ask when the divi will be posted.


Hope this helps you.


GO4AWILDRIDE

[Ray1955]

Hey group. I purchased shares of clm on 9/13/21, the day before the ex date. Shouldn't I receive the dividend on are around 9/29/21.

[Chaz1951]

Thanks

[blackcat]

Likely Nov 1, but you can easily figure it out for yourself. Take the closing NAV on Oct. 29, take 21% of that, and divide it by 12.

Current example.

Last Friday's NAV was 10.16.
*.21= $2.1336
/12=$0.1778 would be the new payment going forward.

[Chaz1951]

Is there a date when they will announce the new dividend amount for next years?

[blackcat]

I should note first that I do have a fairly high risk tolerance.

That said, I have no problems with the stock. My overall position is positive 20% real time. (Today is not particularly good for anything)

The complaint of some is that they have rights offerings every couple years. You can regard those as a nuisance - or an opportunity to flip or add. If you sell when the offering is first announced, you will be able to buy back below the offer price later. I am generally to lazy to do that, but I do often add once we get the drop.

The positive is that they recalculate the dividend once per year and I've never known it to vary from that until the next recalculation, That makes it dependable when you are planning your dividend income.

At this point, I see no reason not to hold it.

[CamarilloBob]

So you have been in it for years… I just found it… how has it treated you. Plan on staying with it? Thanks in advance

[Chaz1951]

The actual data which will determine the monthly Distribution Amount for 2022 will not be known until the end of October 2021. However, as an example, if the value of the net assets and the number of shares outstanding were the same as those on July 31, 2021, the monthly Distribution Amount for 2022 would be reset from $0.1602 per share to $0.1813 per share for CLM and be reset from $0.1537 per share to $0.1746 per share for CRF. The actual Distribution Amount for each Fund for 2022 may be higher or lower than those shown in the above examples.

[blackcat]

Could you cut and paste for me just the sentence where it says that it will be .19? I've owned this fund for years and that isn't how it works.

[Scotttrader80]

.19 cents

[blackcat]

maybe you were looking at this- which is just an example?

The actual data which will determine the monthly Distribution Amount for 2022 will not be known until the end of October 2021. However, as an example, if the value of the net assets and the number of shares outstanding were the same as those on July 31, 2021, the monthly Distribution Amount for 2022 would be reset from $0.1602 per share to $0.1813 per share for CLM and be reset from $0.1537 per share to $0.1746 per share for CRF. The actual Distribution Amount for each Fund for 2022 may be higher or lower than those shown in the above examples.

[Scotttrader80]

https://finance.yahoo.com/news/cornerstone-funds-announce-continuing-monthly-203000987.html