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Strategies & Market Trends : A.I.M Users Group Bulletin Board -- Ignore unavailable to you. Want to Upgrade?

To: JSLyons who wrote (17250)	11/8/2001 9:25:45 AM
From: Bernie Goldberg	Read Replies (1) \| Respond to of 18928

Hi Jonathan, I'll give you my answer to the question you addressed to Steve as well. ACG and RCS are two different CEFs that I use for income only. I like RCS even more than ACG. The dividend has never fluctuated at all. The only exception is that in two of the three years I have owned it they have thrown in an extra dividend every once in a while (three different occasions). To answer your question to Steve:I also use REITs for income as well as AIM stocks. They give me a little bit of AIM action and I find the income they provide useful. With a 9% or so dividend I also try to avoid excessive selling. I accomplish this with a split safe. I set my Sell safe at 20 and my Buy safe at 10. This has given me buys with HR at prices of 15 to 16. I've also gotten to make some very profitable sales between 25 and 27, close to another at 28.50. With MMFs now at about 2% or a little less, I put about 75% of my Cash Reserve in the Preferred Stock of the REIT. This keeps my income from the REIT right between 8 and 10%. The 20/10 safes makes my Sells more profitable. Since I only do this with higher income producing stocks I don't feel that it is introducing the subjectivity that AIM helps us to avoid. Hope this helps. Bernie

To: JSLyons who wrote (17250)	11/8/2001 1:00:38 PM
From: OldAIMGuy	Read Replies (2) \| Respond to of 18928

Hi JS, Value Line has a write-up on ACG if you'd like to read it. I can send it via an email attachment. Private Message me your email address and I'll send back. Best regards, Tom

To: JSLyons who wrote (17250)	11/15/2001 10:28:41 AM
From: Bernie Goldberg	Read Replies (1) \| Respond to of 18928

Hi Jonathan, Just to finish off the discussion on Premium/Discount purchasing of CEFs. Last night ACG reported earnings and NAV per share. NAV for YTD at the present time was reported a $8.35 per share. Guess what this AM ACG opened down .48 at $8.18. Today it can be purchased at a discount if one so desired. This is no guarantee that it won't go down further, it just means that ACG went on sale today. Today it has been marked down about 2%. As I finish typing this post the price is back to about $8.30. It will probably finish the day very close to the NAV of $8.35. After today the market will determine whether the price goes up or down depending on investor sentiment. Bernie