Edmond:
Intrigued, I called up a stick chart on TDF. Nice hammer formation the day before yesterday and it looks like it's ready to reverse:
stockcharts.com[h,a]dhclyymy[pb50!b200!d20,2!f][vc60][iut!Ub14!Ua12,26,9!Lc20!Lk14!Lh14,3!Ll14]
I know zero about this fund except what they release in press releases (see below). It's hard for me to tell whether you can buy this sort of thing on the basis of the charts and hope for the market to react as it does with more liquid investments.
Is there anything fundamentally interesting about this one??
Templeton Dragon Fund, Inc. Board of Directors Announces Efforts to Address the Discount
FORT LAUDERDALE, Fla., Jun 22, 2001 (BUSINESS WIRE) -- Templeton Dragon Fund, Inc. (the "Fund") (NYSE: TDF chart, msgs) announced today that in a continuing effort to improve the discount between the Fund's share price and its net asset value, the Fund's Board of Directors has established a nine month measurement period (commencing on August 1, 2001 and ending on April 30, 2002) (the "Measurement Period") for evaluating the discount of the market value of the Fund's shares from their net asset value. If the Fund's shares have traded at an average discount from net asset value of 10% or more during the last 90 days of the Measurement Period (based on the closing price of every trading day during those 90 days), then the Board will take one of three potential actions. The Board, as soon as reasonably practicable, but no later than 180 days from the last day of the Measurement Period, will either: (i) commence a tender offer for a portion of the Fund's outstanding shares ("Tender Offer Alternative"); or (ii) submit to shareholders a proposal to reorganize the Fund with either an open-end or closed-end investment company ("Merger Alternative"); or (iii) submit to shareholders a proposal to convert the Fund to an open-end investment company ("Open-End Alternative"). The Board may determine to take more than one of these actions.
In connection with the Tender Offer Alternative, any tender offer authorized by the Board for a portion of the Fund's shares may be at net asset value less expenses or at a discount to net asset value. Any such tender offer would be conducted and shareholders notified in accordance with the federal securities laws and other applicable law.
In connection with the Merger Alternative, if shareholders vote to reorganize the Fund with an open-end investment company, shares of the reorganized fund would be continuously offered for sale and redeemable at the option of the shareholder (except under limited circumstances permitted under the federal securities laws) at their net asset value less any redemption charge that the Board of the reorganized fund might put into effect and would be payable by shareholders upon redemption. Such redemption charge may be substantial for a limited period of time following the reorganization.
In connection with the Open-End Alternative, if shareholders vote to open-end the Fund, the Fund will begin to continuously offer its shares for sale following the effectiveness of a registration statement filed with the U.S. Securities and Exchange Commission relating to the Fund's open-end shares. Each Fund share would be redeemable at the option of the shareholder (except under limited circumstances permitted under the federal securities laws) at its net asset value less any redemption charge that the Board might put into effect and would be payable by shareholders upon redemption. Such redemption charge may be substantial for a limited period of time following the open-ending.
Under Maryland law and the Fund's constituent documents, the vote of shareholders required for the approval of the Merger Alternative or the Open-End Alternative is dependent upon the vote of Directors on such proposal. If two-thirds or more of the Fund's Board approves the Merger Alternative or the Open-End Alternative, then a majority of outstanding voting securities of the Fund would be required to approve either proposal. If less than two-thirds of the Fund's Board approves the Merger Alternative or the Open-End Alternative, then either proposal would require the approval of two-thirds of the Fund's outstanding voting securities.
The Fund is designed for investors seeking long-term capital appreciation and under normal market conditions invests at least 45% of its total assets in the equity securities of "China companies." The Fund currently has total assets in excess of $500 million. The discount between the Fund's share price and its net asset value on June 15, 2001 was -18.78%. Its discount one year ago was -27.06%. In efforts to address the discount of the market price from the net asset value, the Board authorized a share repurchase program in October 1997 and a managed distribution policy in July 1998. Since the beginning of the repurchase program through June 15, 2001, the Fund has repurchased 5,261,000 (9.7%) shares of the Fund's common stock. The most recent quarterly distribution announced by the Fund in accordance with the managed distribution policy was $0.2651 per share which will be paid on June 25, 2001 to shareholders of record on June 14, 2001.
The Fund's investment adviser is the Hong Kong Branch of Templeton Asset Management Ltd., a wholly-owned subsidiary of Franklin Resources, Inc. (NYSE: BEN chart, msgs), a global investment organization operating as Franklin Templeton Investments. Through its subsidiaries, Franklin Templeton Investments provides global and domestic investment, shareholder, custody and distribution services to the Franklin, Templeton and Mutual Series funds and institutional accounts, as well as separate account management services. The San Mateo, CA-based company has over 50 years of investment experience and in April 2001, acquired Fiduciary Trust Company International. Fiduciary, founded in 1931, is one of the world's oldest global investment firms specializing in managing assets for institutional and high net worth investors worldwide. The combined entity had more than $271 billion in assets under management as of May 31, 2001. For more information, please call 1-800/DIAL BEN(R) (1-800/342-5236).
Contact: |
