It amazes me how these so called "sophisticated investors" call clm and crf a "gimmick" and how many ignorant people there are on how to trade this fund and make 20-80% every year on it..regardless of nav for the past 5 years it has traded from the mid 7 to the 14/share+ range 4 star rating by morningstar ...My best performing asset so I converted my entire portfolio to clm and crf. The way you trade these funds is to reinvest the distribtions at the net asset value which is usually 20-30% below market price. The chances of this fund ever trading to a discount to its nav again has been reduced by 99%. The nav is now lower then when it crashed below $6/share during the covid crash..The erosion of the nav actually helps your investment by constabtly reinvesting those distributions at a lower price...I do expect a reverse split..however...if you keep reinvesting those distributions at nav and then sell before the rights offering or shall I say between Feb18 and March 1 of every year for the past 5 with the exception of the covid crash your returns are phénoménal and the fund behaves very predictably. Regardless of nav, marke price/sharenstays in a steady range and anyone who sold before the rights offering in June last year and bought back after did quite well and is still in the green. When you reinvest the distributions at nav you get a boost to your dividend in dripped shares and if you want to the dripped shares as income you then turn around and sell equivalent number of shares for an immédiate profit. The nav is now 6.51 and the market price 7.91. For every thousand shares you get thats about 17.49 dripped shares based on current nav..the special dividend reinvestment program makes the likely .1139/share monthly distribution more like 0.13/share at current market prices..at $10 share you are looking at .17/distribution based on current nav..I doubt the accuracy thenn post split chart on this site but justvin case its correct, it traded in today's equivalent range of $5 to $14/share since inceptipn so a 9/share profit isnt good enough? You have to drip the shares at nav...I have already calculated that if the nav goes up to 7.8 but the market price stays the same by next March I will recuperate at least 10k of losses..even though I bought clm from 8.80 to 10.65/share..after 6 months of dripping at nav I only need the market price to get to 9.90 to make back the 47k i lost from other etfs ,etns and cefs. By the time you have doubled the number of shares you own just by dripping at nav and trading around the RO the value of your position would be up 100% and your breakeven reduced by 50% at todays low market prices. Get a calculator out naysayers who bash this fund but have no experince with it.CLM and CRF holders who have dripped every distribution at nav qince the last RO are still in the green as long as they kept accumulating their discounted dripped shares...besides crf I dont know of any other fund that can do this..this is why I got rid of the real garbage and reallocatd my portfolio to 53% crf 47% clm dripped at nav...if you make 20% off your cornerstone investment and sell before the rights offering, you will be able to buy up to 20% more shares after the rights offering and that also makes up for the dividend cut. I use one account for income and another account as a buy and hold both sold before the rights offering...you have to know how to trade this fund..it will never trade a discount again..well highly unlikely...at 9.90 for clm and 8.75 for crf I make back 47k and then some simply by dripping at nav over the next 5-6 months...if you want your capital to grow 20-80% every year you drip at nav sell before ro and buy back..and I think market prices of 9-10.50/share are very realistic targets...currently with over 14000 shares of both cornerstone funds combined...people say the chart looks ugly..well nothing goes straight up every chart is ugly today and these funds have withstood every financial disaster..if clm gets back to 10.50/share and crf 10.30/share the value of my account will be higher than the last time both funds hit those prices simply from accumulating all those shares dripped at nav..by the time youve increased the number shares you own from dripping at nav(or dripping at the avg market price of the last 5 trading days,whichever is lower) and trading around the righs offering youve reduced your breakeven. If you increase your shares by 30% then youve offset dividend cut by 30% lowered your breakeven by 30% and need the larket to go up 30% less to make a profit CLM and CRF both rated 4 star by morning star and youd be up 5% since inception if you simply bought and hold. The chart does not show total return nor does it show that the more shares you accumulate the less it has to go up for you to mae a profit. The price could stay the same and you are in profits but you have to drip the shares at nav to maximize your dividend and/or reduce your breakeven. The Cornerstone Funds Are the only funds I know where the market cqn go below your inital buy price but your investment can actually be worth more than when it was above your initial buy price simoly by accumulating sharrs dripped at nav. If you dont reinvest at nav then you need to learn how to read a basic chart. You buy these funds in the 7-8 range and sell from the 10-12.50-14/range..you dont hzbe to tile the market...all you habe to do is monitor N-2 filings with the SEC..you cqn Google that..when an N-2 is filed with the SEC Cornerstone is getting ready to announce another rights offering and that means both Cornerstone Funds are getting close to their annual highs for the year..If bought after every RO or when the fund was trading in songle digits and sold the dqy the N-2 form was filed you woud make a killing every year. If you bought at the top at 14 you didnt know what you were doing..easy to make 20-85%+ on this fund every year by trading..and then once youve finally doubled your shares your breakeven is reduced by 50%..over the course of several years even if you bought at 14 as long as you sell before the RO and buy back after and continue to drip until youve doubled your shares your breakeven is now $7/share. By the time youve quadrupled your shares your breakeven is 0 and youre in pure profits...if you take the cash dividend you are leaving money on the table on the form of dividends and capital gains. Btw Cstone usuqlly files an N-2 on Feb 18...so you wouldve made out well and got out just before the covid crash in March and had qn opportunity to buy under 6/share...its a very predictable eqsy fund to make money but you cant just sit there and throw money at it..you really cqnt do thqt with any fund..best to always buy low and sell higher...hope that clarifies how the fund works for those of you bashing it unable to read a chart. On that note, we have a huge buying opportunity in clm and crf right now...between feb 18 and March 1 we will most mukely see it hit its peqk for the year...i doubt it will get to 14 but 8.85-10.30 is a very realistic number for it to hit in the future. Ive allocated my portfolio so thqt when it gets to 10.50 I will have recuperated all my losses from crap like slvo and usoi..and ra..and if I continue to drip at nav i only need crf to be qt 8.75 and clm 9.90 by March 1 to recuperate my losses and mqke q profits...8.85 crf is a dollar below where i got in. Dont underestimate dripping at nav
AI
