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

To: Jack Jagernauth who wrote (18369)	8/8/2002 11:20:24 AM
From: OldAIMGuy	Respond to of 18928

Good morning Jack, ACG's primarily invested in U.S. Govt. paper, but there's very high yield stuff from overseas and some corporate things as well. They are currently paying out a bit more than they are making which isn't great for its future viability. However, they did manage to raise a bunch of money in an offering in the last 12 months. If those new $$$ are to be put to work once the FED starts raising rates, then they should be able to build out their position to fully fund the dividend. The price range on this closed end bond fund is about $6 to $9, so it's at considerable risk of principal right now near the $8 mark. Once the FED starts raising rates, AGC's NAV and price/share will start to fall. We could expect a cyclical bottom around $6/share again. That might take 12 to 24 months to occur depending upon the economy, however. It can be AIMed, but it's a very slow motion affair. Keep SAFE at 10% both sides and don't over-trade it. Once a month is almost too much. Maybe bi-monthly would be about right. The cycle is very long (about 3 years peak to peak), so there's no use hurrying it with frequent trades. I've owned/AIMed ACG and its twin GSF (now consolidated into ACG) since the late '80s and use it as the primary income producer for my family's living expenses. Best regards, Tom