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Strategies & Market Trends : Equus II (EQS) - Closed-end fund -- Ignore unavailable to you. Want to Upgrade?

To: Labrador who wrote (6)	7/31/1999 11:42:00 PM
From: Devil's Advocate	Read Replies (1) \| Respond to of 13

The dividend was paid in stock (with an option to get it in cash) five time during the last 6 years. So, taxes should not be a problem if they decide to do as usual. In dec 95, a situation similar to this one has occurred for Equus. they paid a $2 dollar dividend when the stock was at 13.25. The stock has increased to 15 in the following month. The stock never went under 13 during the following year. In fact, I checked how the stock performed after each dividend payout for the last 6 years and I cannot see a consistent drop in the stock after the dividend is being paid. Of course, there is only one year (dec 95) where they have paid a dividend as big as the one they might pay this year. Management's valuation of non-publicly traded securities is always a risk. But I think the risk is worth it considering that the stock is trading at a 40% discount to net asset value. Also, about 30% of Equus net asset comes from publicly traded companies for which they own securities. They can't cheat on those companies. Haven't check into management fees, yet. If you know anything about it feel free to post it. Here's some interesting links to back up what I said: finance.yahoo.com equuscap.com