Cornerstone Total Return Fund (CRF)

[leftovers]

Don't think the price will get that low? Personally not too excited about the RO be glad when it passes!

theres still 2 weeks left until the RO is done. Im hoping to see the low $13.00's upper $12.00's print before the time is up.

[prairielady]

Understood, lots of unknowns this game.
Still trying to figure out mechanics tho.

[Scotttrader80]

Ive been tempted to buy but after going through a few past RO's sometimes the sp drops below the subscription price. As the end of month dust settles, the sp flounders, I'd love to get some in the upper $12.00's

GLTY

[prairielady]

So, are you just buying on dips leading up to Rights Offering, and NOT exercising Offering share purchase opportunity?

Bear with me, am newbie to RO. As I get it, CRF stated 13.31 subscription price, presumably will adjust @ close of RO and settle accordingly with RO shareholders (?).

Or do RO shareholders take the hit if market price drops to below 13.31 (after calculating 90% mkt price etc)

Trying to research online, waiting to hear back from Broker (TDA). Stuck.

[Scotttrader80]

I was soooooo tempted to scoop up some $13.68's this morning but know theres still 2 weeks left until the RO is done. Im hoping to see the low $13.00's upper $12.00's print before the time is up.

Once the RO is completed and the dust settles the Cornerstones will do a rapid climb through the $15.00's to the $17.00's in time for New Year!

[Scotttrader80]

The rights entitle stockholders to acquire one share for each three rights held. The subscription period will commence shortly after the record date, and will expire at 5:00 p.m., EDT, on Friday, July 20, 2018, (the “Expiration Date”) unless extended.

[bar1080]

"Cross A Greater Fool Trade With A Ponzi-Scheme And You Get…"

“Investing has sunk to this: People are willing to pay a big premium for the privilege of getting their own money back, after fat fees, without interest—apparently because it gives them the illusion of earning a high yield.

Desperate people do desperate things. Investors who are starved for yield do desperately stupid things.”

http://kiddynamitesworld.com/cross-a-greater-fool-trade-with-a-ponzi-scheme-and-you-get/

[bar1080]

Both Cornerstone funds plummeted 8% today as they announced rights offerings. Hard to understand why these gimmicky funds sell at a whopping 25% premium to NAV.

[Scotttrader80]

Seems like all divys have breathed a sigh of relief after the Fed suspended raising rates for 2018. Much needed imo, the REITS were getting crushed. OAKS has gotten hammered, they'll end up folding like JMI did. ORC is holding its own, but the sisters, CRF CLM, so far, best in breed

[leftovers]

Ya there doing great! I try and add 100 or 200 shares each month after Xdate. Sure is nice when that dividend lands Cha Ching!

[Scotttrader80]

The sisters are creeping up strongly. I was hoping for a pull back to add but its not looking that way. They both have $16.00 in their sights. Might have to go with OXLC instead

[bar1080]

Today's CRF premium to NAV: 25.1% Why would anyone pay that for a perfectly ordinary portfolio of blue chips that yields about 1%? The rest is gimmickry.

[bar1080]

From SA: "I cannot resist mentioning to any unwary investor that the two Cornerstone funds CLM and CRF are absolutely awful and have consistently destroyed share price and NAV over the years with absurd distributions that require ongoing rights offerings to cover destructive return of capital. Stay away!"

https://seekingalpha.com/article/4167287-chemists-cef-report-april-2018-cef-discounts-widen-12-month-lows

[leftovers]

Works for me! Opened my account to see a sea of green from the sisters with no market open!

[Scotttrader80]

I'll buy some, add'm to the pile

[Scotttrader80]

I think

[Scotttrader80]

On the other hand, these dips are attractive

[Scotttrader80]

Figures, March divy pay date tomorrow and the markets are closed.

[Scotttrader80]

https://finance.yahoo.com/news/cornerstone-funds-announce-continuing-monthly-213000743.html

[bar1080]

CRF opened 2017 at $15.15
CRF closed 2017 at $15.28

Monthly distributions 12 X 0.229 $2.75
CRF 2017 payout yield 18.1%

Pretty good, but compare CRF to any index fund...

The S&P 500 index finished the year with a gain of 19.4 percent.
Including dividends, the S&P 500’s total return was 21.8 percent, as of late Friday.

The Dow Jones industrial average gained 25.1 percent.

The Nasdaq composite did even better and climbed 28.2 percent.

[Scotttrader80]

CRF closed out the year UP @ $15.28. Now we get a raised dividend EVERY month and an increasing share price heading into 2018.

Happy NEW Year

[bar1080]

Recent SA article about CRF/CLM with much current cerebral debate (in the comments section).

Some topics discussed:
- If you MUST buy CRF, then WHEN should you buy?
- How to "play" the rights offerings
- When should you NOT buy these funds?
- When should you sell?

"High-Yield Cornerstone CEFs: CLM And CRF Are Too Good To Be True"
https://seekingalpha.com/article/3975629-high-yield-cornerstone-cefs-clm-crf-good-true

[Scotttrader80]

Its almost 2018 stick to the present looking forward to the FUTURE. CRF is a safe bet increasing their monthly dividend, no brainer


buy the dips

[bar1080]

"Cornerstone Funds' Payout Not What It Appears"

"The two closed-end funds inflate their yields by returning investors' original investments."

Aug 27, 2007

"What shareholders may not realize is that most of the distributions they are receiving represent a return of their principal investment, rather than investment income. More than 95% of the total distribution CRF paid between 2002 and 2006 was simply returning the original money that investors had put into the fund, what's known as return-on-capital, according to filings with the Securities and Exchange Commission. Excluding 2005, when yield came from net realized gain on investments, over 96% of CLM's yield was return-of-capital over the same period."

This is article is old but it is a must-read for those considering buying ultra-high yield funds including those from Cornerstone.

https://www.thestreet.com/story/10376362/1/cornerstone-funds-payout-not-what-it-appears.html

[Scotttrader80]

try not to get caught up in the noise, we know what we own and know what kind of bread we make

[bar1080]

Compare CRF with $10k invested in an S&P 500 Index (SPY) over that same ten year period.

"Total return: 126.68%
Average Annual Total Return: 8.53%
Starting investment: $10,000.00
Ending investment: $22,677.51"

https://www.splithistory.com/?symbol=spy

[bar1080]

$10,000 CRF investment ten years ago turns into $10,417.77 today with dividends reinvested. That's an Average Annual Total Return of 0.41%

WITHOUT divs invest it would have been $7651.98.

https://www.splithistory.com/crf/

[bar1080]

1,000 CRF shares becomes 125 shares in a decade, during one of the greatest bull markets in history.

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=136957657

[bar1080]

"(CRF) has 2 [reverse] splits in our CRF split history database.

The first split for CRF took place on December 23, 2008. This was a 1 for 2 reverse split, meaning for each 2 shares of CRF owned pre-split, the shareholder now owned 1 share. For example, a 1000 share position pre-split, became a 500 share position following the split.

CRF's second split took place on December 29, 2014. This was a 1 for 4 reverse split, meaning for each 4 shares of CRF owned pre-split, the shareholder now owned 1 share. For example, a 500 share position pre-split, became a 125 share position following the split."
https://www.splithistory.com/crf/

[bar1080]

Let's go back with CRF about 10 years, before the Great Recession

[bar1080]

Right. Cornerstone funds have been junk for years. Your post was absolutely valid. Always look under the hood with these high div stocks. Start by looking at the long term performance record going back at least thru the last bear market.

If this is a "Total Return Fund", then look at the TOTAL return not just the flashy dividend.

[Scotttrader80]

Thats not the case for 2018, if CRF isnt for you, MOVE ON

[peza77]

"increased the 2018 dividend" .. What a freaking Joke; they increased it by 1/2 of 1% of the previous year, the ONLY 'increase' ever in over 10 years ... Dividends have been CUT from $ 1.42 in 2007 to 0.23 in 2017, an 84 % cut ...

[Scotttrader80]

Absolutely! a LOT of companies especially monthlies are x div today, take notice they've changed their qualifier from 3 day settlemet to 2 day X and record date. I think its evident with ORC's announcement, X is 29th Record is 30th. Exciting! Im looking to nail some OAKS under $4.00, they usually swing .30-.50 a month.

CRF's looking UP, INCREASED 2018 divy!? Ka'ching $$$

[leftovers]

good time to add some today being Xdate!

They've increased the 2018 dividend

[Scotttrader80]

Ask my self about CRF 2016? LMAO I dont live in the past. They've increased the 2018 dividend, that all anyone needs to know.

[peza77]

Yes, share price actually could climb quite a bit. Which is why I bought CRF 14.72 last week and also sold it on Thursday or Friday for 2% profit. But maybe you should ask yourself why did CRF crash to almost $12 in 2016 when the dividends then were quite a bit higher than now...?
And I took that 2% profit and bought another huge chunk of MU call options.MU (Micron Technologies) call options will likely double or quadruple when MU share price goes closer to $60 in the next few months. No use in chasing the silly 18% dividend yield of CRF.
I also bought a huge chunk of IMLFF shares for under $0.40, now they are $0.61;
BOUGHT ANET for 192, sold today for 224. That's a 17.7% return in 3 weeks ...

[Scotttrader80]

I guess the Cornerstones are proving you WRONG, eh!

[Scotttrader80]

I see the Cornerstones going UP! in share price while INCREASING their 2018 dividends.

[Sone]

We got a raise!!$$

[Sone]

Gonna need to pick some up this week

[Scotttrader80]

Ya its INCREASING in 2018

[Sone]

No news on next year divy yet?

[Scotttrader80]

Seeing $14.92 today

[peza77]

Closer to 10 or 11 with the next market correction. When was the last time you looked at a 10 year chart of CRF, and what did you see?

[Scotttrader80]

CRF Will be 12 within less than a year ...

Almost a year later and $14.85 isnt too shabby

[Scotttrader80]

CRF

Record Date
Payable Date Per Share

CLM October 13, 2017 October 31, 2017 $ 0.2326
CLM November 15, 2017 November 30, 2017 $ 0.2326
CLM December 15, 2017 December 29, 2017 $ 0.2326

CRF October 13, 2017 October 31, 2017 $ 0.2289
CRF November 15, 2017 November 30, 2017 $ 0.2289
CRF December 15, 2017 December 29, 2017 $ 0.2289

[Scotttrader80]

Try searching "rights offering" on Investing sites to see who is doing one

https://www.reuters.com/search/news?blob=rights+offering

[Gymbo10]

Scottrader 80 and any others?,

I'm a newbe to posting and in fact this site. I have however owned CRF for a while and like the div and the possible double dip. I really am confused about the "Rights Offerings" that present themselves from time to time. I've been with Scottrade for several years but they don't offer much in the line of information on such matters. Is there anybody out there that might be able to provide a little coaching on the "Rights Offering" opportunities? Thanks, Jimbo10

[Scotttrader80]

CRF is one of the top payers, bookmark this Ibox for more great paying companies

https://investorshub.advfn.com/Daves-Dividends-Payers-22057/